Every year, thousands of Indian students go abroad to study, while many others always plan to do so. Most students opt for education loans, but getting an education loan to study abroad is not as easy as it seems.
According to a report, around 1.8 million students could opt for an education loan for higher studies abroad in 2024. If you’re wondering how to easily get an education loan, here are some tips to make the process easier.
Enrol at a reputable institution
The reputation of the institution plays a crucial role in the education loan approval process. When choosing a university or college to study at, students often make the mistake of choosing lesser-known institutions for the sake of lower fees. This can make it difficult to obtain a student loan later. When choosing an institution, it is important to check whether the bank will readily provide education loans for admission.
Have multiple funding options
Education loans for studying abroad are not limited to banks. Nowadays, international organisations such as Prodigy Finance and M Power offer education loans in addition to banks and non-bank finance companies. In addition, various universities assist international students in obtaining education loans.
Have a good credit score
Similar to any other loan, a good CIBIL score is crucial for getting an education loan. A higher credit score increases the chances of loan approval. Therefore, it is advisable to ensure timely repayment of all types of loans before starting the education loan application process.
Consider scholarships and grants
When studying abroad, it is important to investigate scholarships and grants. Many universities and colleges offer full scholarships. If a scholarship or grant is awarded, it can significantly reduce the need for an education loan. Loan scholarships are also available these days. Organisations such as the Tata Foundation, Aga Khan Foundation and others offer zero per cent loan products and scholarships.
Keep the essential documents for education loan ready
Apart from KYC documents, keep salary slips and income tax returns ready. Before applying for an education loan, both the applicant and the guarantor should have the income tax return documents for the last few years. Also, make sure you are ready with the confirmation letter and other documents received from the institution.
