Studying abroad can cost you INR 20-30 lakhs per year. It majorly depends on the country and the course you decide to pursue. The cost of education in the USA for Indian students is 15-40 lakhs per year whereas in the UK, your tuition fees would be between 15-20 lakhs. Tuition fees of universities in Australia and Singapore are less than the USA and UK. Cost of education in Australia is 10-18 lakhs and the in Singapore is 7-15 lakhs.
One of the best ways to fund your foreign education is to apply for scholarships. If you do not receive a scholarship, or if it does not cover your entire education expenses, you can take an educational loan from banks for foreign education.
Here is a list of documents that you need to apply for an educational loan from a bank.
- Duly Filled Application Form: This is the most important document for educational loans. You can visit a bank where they will provide you with an application form for an educational loan. A lot of banks also allow the customers to download the application form from their website.
Ensure that you fill all the details correctly in the application form.
- ID Proof- Just like other bank loans, you need to submit a photocopy of your ID proof for educational loans. You can either submit your passport, Aadhar Card, PAN Card, Driving License or Voter’s ID card. However, if you are below 18 years, you can submit your Aadhar card as proof and your guardian or co-applicant will have to submit their PAN Card or driving license.
- Residence Proof- For residence proof, you can submit a photocopy of either a passport, voter’s ID, Aadhar Card, or driving license.
- Academic Transcripts- Another crucial document to be submitted along with the educational loan application is your academic certificates. You need to submit a copy of your senior secondary marksheet or certificate. If you have applied for a master’s degree in a foreign country, you will also need your graduation marksheet or certificate.
Moreover, you can also submit any other specialization or diploma certificate.
Since you are seeking a loan for studying abroad, you will also have to submit the marksheet of your IELTS/TOEFL tests and other entrance exams such as GMAT, CET and more.
- Acceptance Letter From the University- While applying for a foreign educational loan, it is compulsory to submit a photocopy of the acceptance letter from the foreign university. It serves as proof that you have received admission abroad.
The acceptance letter should be written on the official letterhead of the University and should also bear the university’s address.
- Bank Account Statements- At the time of applying for an educational loan, the banks also ask the parents, guardians or any other person who is the co-applicant to show his bank statements for the last 6-8 months. The statements shall be of the bank account in which your co-applicant receives salary every month.
- Proof of Income- Documents serving as income proof are crucial at the time of applying for a foreign education loan. It shows that you have the capacity to repay the loan amount to the bank. Following documents can be submitted as income proof by your co-applicant.
- Salary slips of the last 3 months.
- Income tax certificates and returns of the previous 2 years.
- Self-employed people can submit income tax certificates of the past 2 years, financial statements verified by a CA.
- Any other document as proof of income.
- Documents for Security or Collateral- At the time of taking a loan, you need to submit a security deposit or collateral with the bank. Since, foreign education is expensive, you might have to mortgage an immovable property. You can submit any of the following documents as collateral for your educational loan.
- Title Deed of Sale Deed of the property.
- Original registration certificate of the property.
- An allotment letter approved by the local authority.
- Property tax and maintru bills receipts.
- Any other document as may be required.
The requirements may vary as per the banks. You might be asked to submit a few additional documents. All the above-mentioned documents except for collateral deeds shall be submitted as photocopies and must be self-attested.
If you need any guidance on foreign educational loans or scholarship applications, please get in touch with us.