Every year, thousands of students plan to go abroad for higher education in India. According to the latest data from the Ministry of Foreign Affairs, the number of students going abroad has increased even after the outbreak of the pandemic. More than 1.1 million Indian students were studying abroad in 2021, he said. A report by management consultancy RedSeer estimates that around 1.8 million students are likely to opt for overseas higher education in 2024 and their spending could average $80 billion a year. .
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Many of these students are looking for student loans, but getting one is often not as easy as it seems. Usually, the road to getting a student loan is not so easy or short because lenders consider everything from where you are going to study to the loan amount. Here’s what can make things easier:
of the Institute Reputation: Often, students make the mistake of choosing a less expensive but little known country or institute. This decision is usually based on the student’s budget. However, it should be noted that depending on the notoriety and success rate of alumni of a university, many lenders may sanction an unsecured or unsecured loan of low value. Public sector banks usually have a list of universities and courses where students get certain benefits such as a lower interest rate or only have to provide low value collateral.
Lenders A part Since Banks: The choice of lenders is getting wider when it comes to studying abroad compared to studying in India. In addition to banks and non-bank financial companies (NBFCs), there are international organizations such as Prodigy Finance and MPower Financing that provide student loans. Various universities also help international students to get loans in the respective countries. Look at the repayment period, interest rate and reading other terms and conditions before choosing a lender.
Good Credit Score: Like any other loan, a good credit rating means a better chance of approval. So be sure to repay all loans, including small loans such as BNPL (buy now, pay later), on time.
Documents are important: In addition to having know-your-customer (KYC) documents in place, keep documents related to salary, tax return (ITR), and guarantees handy. Before applying for the loan, the applicant (if he was working before) and the person providing the guarantee must have the ITR papers of the last years. Keep the confirmation letter from the institute separate from other documents received from the institute.
To explore Scholarships: Various bodies and academic institutions provide partial scholarships. Also research scholarships before or during the application process, as there are various programs and opportunities to avail a scholarship with a loan. There are also a few zero percent loan products and grants available from organizations such as the Tata Foundation, Aga Khan Foundation and others. Organizations such as Gyandhan and We Make Scholars help students with loan and scholarship programs.