The abroad education loan process can prove tricky if you are not aware of the intricate details about the steps involved in the procedure, for example, how to apply, the documents that need to be submitted, and the time to get the loan process approved.
Education loans are one of the common sources of funding education abroad in recent times. As education inflation is reaching new heights and education costs are rising day by day, one can consider applying for education loans to support their already existing savings.
An overview of the abroad education loan process
Each year thousands of students apply for an abroad education loan as they want to pursue further studies at top universities of the world.
The biggest challenge is arranging funds through education loans, as the cost of studying and living abroad is very high.
Students in India can apply for secured education loans from government banks, private banks, PSU banks, and unsecured loans from non-banking financial corporations.
Students also have the option of getting education loans from foreign banks that offer loans to non-native students for global education.
How to apply for an abroad education loan process?
- Fill out the online application form provided by the bank that you have shortlisted for the education loan.
- Visit the bank and confirm all the documents that will be needed by the bank for forwarding the loan process further.
- Gather all the required documents in a file and submit them to the proper authority in the bank.
- Enquire about the lawyer and valuator and get the legal opinion and valuation report from the lawyer and valuator, respectively, which will be later submitted to the bank by the valuator.
- The complete documents are then sent to the loan processing cell, and the processing officers go through the submitted documents and verify the loan application.
- The bank then sanctions the loan, and the loan applicant will have to visit the bank and sign all the necessary documents.
- Post visa approval, applicants will have to revisit the bank and complete the property mortgage process if any property has been mortgaged against the loan.
- Funds are disbursed after signing a disbursement agreement.
As soon as you clear the eligibility criteria, the loan gets approved, and you can sign the loan agreement.
Documents required for applying for abroad education loan process
The financial institution where you have applied for the abroad loan application will require details of the applicant and the co-applicant.
- Properly-filled application form.
- Documents confirming identity details and residence proof of the applicant and co-applicant. It can be a passport, voter ID, pan card, driving license, or Aadhar card that would show personal details and current address.
- Passport-size photographs of both the applicant and the co-applicant
- Academic documents of the applicant that depicts the total academic and professional experience. This includes mark sheets and certificates of class – 12, graduation, and the results of the admission test that the applicant has taken, like SAT, TOEFL, LSAT, GMAT, IELTS, or GRE.
- The acceptance letter that the applicant has received from the university is the admission proof for studying abroad.
- Last six months’ bank statements of the applicant and the co-applicant.
- Income proof of the co-applicant that shows that they are capable of fulfilling the terms of loan payment in case the applicant is unable to do so.
- In the case of collateral, the property title deed, building approved plan and NOC for a mortgage from the builder is needed.
Time required to get the loan process approved
It takes nearly 45 days to 2 months to start the processing for the submitted loan application. Edufund has tied up with several top banks in the country and can process the loan in comparatively fewer days.
The experts associated with the app will negotiate on your behalf and get the best possible offer on loan rates.
Conclusions
Students who are aware of the various steps involved in the abroad education loan process can plan, prepare and take full advantage of the knowledge so that the application process for the loan procedure is smooth, fast, and quick.
There are no hidden costs and zero commission, which will help to save on unnecessary fees.
