What Are The Requirements To Obtain an Education Loan for StudyingAbroad

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Piyush
Piyush Kohli
Study Abroad Expert
Updated on Apr 11, 2020 15:18 IST

Education loans are no different than any other loan; they have almost the same requirements and eligibility criteria. However, since it is an education loan, after all, there are a few different requirements. Also, there are some differences between the requirements for international and domestic education loans.  

Here are a few things you need to keep in mind while applying for a loan.  

Requirements  

  • A co-applicant is required. Your parents, siblings or spouse can act as a co-applicant. 

  • If you are taking out a loan between Rs. 4 to 7.5 lakhs, third party guarantor is required. 

  • If you are taking out a loan above Rs 7.5 lakhs, you will need to provide collateral security. 

  • Repayment options are flexible, but usually, loan repayment tenure starts after six months to a year after your course is completed. 

  • If you choose to remain abroad after completing your course, the bank will recover the loan amount from the co-applicant. 

  • Banks have different upper limits available for loan, interest rate, and the repayment tenure. So your loan details will differ according to the bank 

  • Usually, banks have pre-approved list of courses and universities depending on the quality of the course and the reputation of the university. The education loans are sanctioned on the basis of relevance of the chosen course to your career and creditworthiness of the co-applicant.

You can also contact India’s leading education loan providers through Shiksha Study Abroad

Learn more about loans:

About the Author
Piyush Kohli
Study Abroad Expert

With a plethora of knowledge of the education domain, Piyush Kohli has been involved with study abroad for over 5 years and counting. He comes with prior experience on the complexities of the study abroad applicatio... Read Full Bio

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