An overview of the process of getting an overseas study loan

 

Many students who have lofty aspirations for their future, think about getting an overseas study loan for their higher studies. This kind of loan helps them to pay for their education at the reputed institutes overseas, and also manage expenses that come bundled with overseas education experience like lodging facility, travel expenses, library fees and book costs etc.

 

This article will help you understand the process of getting loan for your overseas studies:

 

  1. Calculate the loan amount you are eligible for

Before you take an education loan for your overseas studies, check the loan amount you are eligible for using an education loan eligibility calculator. Doing this will give you a fair idea of how much money you can borrow at a particular interest rate and tenure. Also, visit various lenders and ask them how much money they can pledge to you as loan. Once you have a fair idea of the loan amount, move to the next step.

 




  1. Compare the services of the available lenders

When you visit different lenders, ask them questions you have about your overseas study loan. Ask them whether their loans cover all the expenses, whether they provide doorstep service, proof of funds paperwork, pre-admission loans, pre-visa loans. Ask them about the moratorium period (or grace period) they provide. Know about their interest rate. Ask if they can give you a collateral-free loan. And most importantly, ask them about the loan interest rate, the EMI and tenure that you will bore while paying back your loan.

 

After considering these factors carefully, select a lender that helps you the best, feasible way and move to the next step.

 

  1. Apply for the education loan

Once you have decided the lender, their employees will help you with the education loan application process. They will guide you in filling the application form. They will help with KYC and other paperwork like Identity proof, proof of residence etc. needed. After that, they will verify the information you provided about your income, your financial assets like property, gold, your FDs, RDs, mutual funds and stocks etc.

 

In this step they may interview you. This step is followed by some lenders; not all. Once you pass their interview they will move on to the next step

 



  1. Wait for education loan approval

The lender will take some time to process your application. All you can do at this stage is wait. Wait for the loan to be sanctioned. Once the loan is sanctioned, the lender will notify you.

 

  1. The lender will disburse the education loan amount

The lender will disburse the loan amount into your account after the education loan is sanctioned. Or in some cases, the lender will give you a bill that signifies your loan amount, which you can submit to your university and college as tuition fees. At this stage, your education fee has been paid using the education loan.

 

We hope this article helped you understand the 5 steps of the overseas study loan process. Please consult a financial advisor to plan your studies financially before you take an education loan. All the best for your overseas education!

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