The cost of education is constantly on the rise and as per recent research it is going to increase by 10-20% in the next ten years and when it comes to the foreign education, the cost is thrice. Students whose parents have savings in the form of fixed deposit, gold, government bonds etc can utilize those to fund the education whereas students who are on their own, look for various options to fund their international education. Scholarships, grants, bursaries are some of the way through which students can fund their higher education.
Education loan is the most popular way that students can opt for to fund their higher education. In India there are 12 public sector banks and 22 private sector banks that offers loan for higher education abroad.
In this article, we are going to know about the step-by-step process of applying for an education loan application in an Indian bank. So, let us begin.
A step-by-step guide for an Education Loan Process:
To avail an education loan from the Indian bank, the basic pre-requisite is that a student is required to be an Indian National. The application process of each bank differs from one to another however below is the standard guide for an overseas education loan process:
Step 1: The education loan application form:
After finalizing the bank at which a student want to apply at, students must visit the bank to meet the officials, enquire about the education loan to get all the queries resolved. To begin with the overseas education loan application process, applicants will be required to fill up and share the education loan application form to the bank.
Step 2: Discussion with the bank employee
Once the student submits the education loan application form to the bank, the bank employees calls the student for a round of personal discussion wherein he/she will be asked varied questions relating to his/her academic scores in the past education, course/subject one has selected, student’s research regarding the university and about his career plans after the successful completion of the degree course. Bank employees will also discuss on how the student is planning to repay the overseas education loan.
Step 3: Submission of the supporting documents
If the student has applied for secured education loan, he/she will be required to submit the necessary documents relating to the collateral security to the bank. Secondly, the bank verify the enrolment of the student with the concerned institute for that the educational documents are also required to be submitted to the bank along with these documents:
Step 4: Disbursal of the education loan
On successfully submitting the education loan application form, bank will sanction the education loan if all the documents are in place otherwise the bank has full authority to deny the education loan application of the student. The bank will successfully complete all the formalities and disburse the education loan. As per the bank regulations, it will pay out the loan amount directly to the college/ institute.
These are the steps involved in a student loan for studying abroad. Applicants can also get in touch with us as we provide overall guidance and assistance in the overseas education loan application process.