Education Loan for Studying in Sweden: Everything You Need To Know

Renowned globally for its higher education, Sweden follows an independent study system that involves minimum teacher interference and a whole lot-of-group and independent study. In other words, self-development paired with freedom and responsibility is what makes the country, world leaders in higher education. Sweden receives a large number of international students every year to its reputed universities, of which Indians form a sizeable chunk. With a wide range of Education Loans and scholarships being available for deserving candidates, Indians traveling to Sweden has only doubled over the years. International students would be pleased to know that the education system in Sweden recognizes and conducts programmes in the English Language.

Sweden – The Country

A leader in innovation and a home of trendsetters and early adopters, visit Sweden to experience the Nordic culture. The country remains a popular tourist destination for its nature tourism, breathtaking scenery, and untouched wilderness. Cities such as Stockholm and Gothenburg are well known for its rich cultural heritage; idyllic setting; multicultural experiences and provides its tourists with a vibrant entertainment scene.

Tuition Fees and Costs

International students who do not belong to EU/EEA/Nordic country or Switzerland are required to pay an Application and Tuition Fees for pursuing higher education. While the Application Fee is (Swedish Krona) SEK 900, the Tuition Fee in Sweden varies, depending on the choice of subject, though the average fee for Masters Programme is approximately SEK 129,000/year while Bachelor Programmes cost less. Move past the tuition fees, students would also require an average monthly student budget of about SEK 8,000 per month as living expenses. However, living costs are entirely subjective and depend on the area one is staying and his personal preferences.

Non-EU/EEA students who are required to stay longer than a year in Sweden are required to buy health insurance for the entire duration of their stay and are required to register with the Swedish Tax Agency. Students whose courses demand less than a year are required to check with their university for health insurance coverage.

Part-time work options

In Sweden, international students are allowed to work alongside their studies and there’s no official limitation to the number of hours spent working. However, for students to keep their education their first priority, they are expected to spend the equivalent of a 40-hour work week reading and working on assignments. Most universities are equipped with career services that help students in finding a part-time job during their studies.

Students also have the option of extending their residence permit by six months to search for a job or start a company, and apply for a work permit thereafter and enjoy the work-life balance that Sweden is famous for. The birthplace of multi-national companies like IKEA, Volvo, Ericsson and H&M, Sweden is a perfect career launcher for students.

Top Universities in Sweden

• KTH Royal Institute of Technology
• Stockholm University
• Chalmers University of Technology
• Kristianstad University
• Lund University
• Jonkoping University
• Linkoping University
• Uppsala University
• University of Gothenburg
• Karolinska Institutet

Read: Studying Abroad attracts tax collected at source (TCS) of 0.5 and 5%

Eligibility guidelines to apply for an Education Loan to study in Sweden

It is important for students to understand the eligibility guidelines and qualify the same, to be able to apply for their Education Loan from a bank or financial institution. The eligibility criteria vary for different banks. However, some common factors that are taken into account by all money lending institutions (banks) include

• The student is required to have successfully secured admission to a job oriented professional/ technical Graduation Degree course/ Post Graduation Degree and Diploma course like MCA, MBA, MS offered by a reputed university.
• The applicant should be above 18 years of age to be able to apply for an Education Loan. Students below 18 are required to apply for the loan co-jointly with their parents.
• The student (borrower) is required to be an Indian Citizen. 

Understanding the Cost of Education in Sweden

Once a student decides to pursue his higher education in Sweden, there would be a lot of factors and services that would cost money. Largely the cost of studying in Sweden would include

• Visa Application
• Tuition Fees
• Food & Accommodation
• Health Insurance
• Books and Stationary
• Telecommunications
• Transport
• Personal Expenses
• Utilities

Applying for an Education Loan

Applying for an Education Loan has become extremely easy for the borrower today. Students should be closely in touch with their coordinators abroad to determine the expenses they would incur while abroad and apply for an education loan accordingly. With banks introducing lucrative schemes, all-round-the-year borrowers should do a thorough research of the market before settling in on their choice. Factors that should determine their preferred bank ar

• The processing fee that would be levied
• The interest rate offered by the Bank
• Loan processing duration
• Expenses covered under the Education Loan
• Repayment terms and duration

Expenses covered under the Education Loan include

The loan sanctioned by nationalized banks would be solely for education purpose and would not cover personal expenses. Apart from Tuition and Accommodation fees, the loan would also extend to examination/library/laboratory fees; purchase of books/equipment/instruments and uniforms; purchase of computer- essential for completion of the course; caution deposit/building fund/refundable deposit; travel expenses/passage money for travelling abroad and any other reasonable expenses required to complete the course like study tours, project work etc.

Bank Formalities

While the formalities vary for different banks while applying for an Education Loan, however, there are a set of formalities that are identical across the board such as documents that you would require to disclose along with your Loan Application Form. The documents primarily include but not limited to:

For Student-applicants:

• Proof of Identity (Anyone): PAN/ Passport/ Driver’s License/ Voter ID card
• Proof of Residence/ Address (Anyone): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or a copy of Passport/ Driving License/ Aadhaar Card
• Passport
• Statement of cost of study/ Schedule of expenses
• 2 passport-size photographs
• If any previous loan from other Banks/Lenders, then Loan A/C statement for last 1 year
• Academic Records: 10th Result and 12th Result
• Graduation Result: Semester-wise (if applicable)
• Entrance Exam Result through which admission has been secured (GMAT, GRE, TOEFL, and IELTS)
• Proof of admission: Offer Letter or Admission Letter from the Institution. Conditional admission letter may be considered in case of studies abroad.

For Co-applicants:

• Proof of Identity (Anyone): PAN/ Passport/ Driver’s License/ Voter ID card
• Proof of Residence/ Address (Anyone): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or a copy of Passport/ Driving License/ Aadhaar Card
• If any previous loan from other Banks/Lenders, then Loan A/C statement for last 1 year
• 2 passport-size photographs

For Income Proof for Salaried Co-applicant/ Guarantor:

• Salary Slip or Salary Certificate of last 3 months
• Copy of Form 16 for last 2 years or a copy of IT Returns for the last 2 financial years, acknowledged by IT Dept.
• Bank account statement for the last 6 months (of Salary Account)

For Income Proof for Self-employed Co-applicant/ Guarantor:

• Business address proof (If applicable)
• Certificate of qualification (for C.A/ Doctor and other professionals)
• Bank account statement for last 6 months
• IT returns for last 2 years (if IT payee)
• TDS Certificate (Form 16A, if applicable)

Loan and Repayment Formalities

Students traveling to Sweden for higher education can avail a maximum loan amount of Rs. 20 Lacs. However, higher loan amounts for studying abroad are considered on a case to case basis. As mentioned earlier, international students will have the opportunity to work part-time to ease their living and tuition costs abroad. International students are allowed to work alongside their studies and there’s no official limitation to the number of hours spent working. However, for students to keep their education their first priority, they are expected to spend the equivalent of a 40-hour work week reading and working on assignments.  Students will also be given the option of staying back for six months to look for a job that corresponds to their area of qualification.

Students who have applied for an education loan from a nationalized bank are required to start the repayment process after the completion of the course period and moratorium period (Repayment commences one year after the course completion or 6 months after securing a job, whichever is earlier). However, students should understand the moratorium time varies for different loan providing institutions.

Get in touch with India’s top-rated loan providers and apply for an education loan through Shiksha Study Abroad

Also read:

• Sweden Student Visa Guide
• P. Gopinath's journey to making to the course of his choice at Sweden: Shiksha Success Stories
• MBA in Sweden
• All about Post Study Work Permit in Sweden
• Country Comparison: France, Ireland, Netherlands and Sweden