Planning to pursue an MBA degree in the United States of America or a hotel management course in Australia? These pursuits require huge monetary investments for travel, accommodation, and course fees. No matter how expensive, you can still attain your academic aspirations through education loans. On Bajaj Markets, you can borrow up to ₹1.5 Crores at interest rates starting from just 10.25% p.a. Want to know more? Here is an in-depth view of international study loans. 

Overseas Education Loan Interest Rates and Charges

The interest rates and other charges of international education loans are as follows:

Lender

Starting Interest Rate

Processing Fee

InCred Finance

11.50% p.a.

0.75% to 1.50%

HDFC Credila

10.25% p.a.

1.50% +  GST

*Disclaimer: The mentioned rates are subject to change at the lender’s discretion.

Features and Benefits

High Loan Amount

Get a loan amount as high as ₹1.5 Crores to unlock the opportunity to pursue your education abroad

Low Interest Rate

Enjoy interest rates starting from just 10.25% p.a. and save on repayment

Up to 100% Funding

Pay up to 100% of your tuition fees, living expenses, examination fees, etc. with the help of an overseas education loan

Flexible Tenure

Comfortably repay the loan over tenure ranging up to 15 years

Types of Loans

Opt for an unsecured loan and borrow up to ₹80 Lakhs. For a higher amount, you may have to submit a collateral.

Zero Prepayment Penalty

Prepay or foreclose the loan without having to pay any additional charges

Quick Disbursal

Receive the loan amount within 10 days of loan approval

Moratorium Period

A moratorium period consists of the degree’s duration and an additional grace period of up to 12 months. Loan repayment starts when this period ends.

Approval Before Admission

Get your loan approved before receiving your Form 20-I or admission letter

Tax Deduction

Enjoy considerable tax benefits on the interest paid for an overseas education loan. This is as per Section 80E of the Income Tax Act, 1961.

Lower Tax Collected at Source (TCS)

Pay just 0.5% TCS for overseas remittance with an overseas education loan

Global Education Opportunities with Foreign Study Loans

You can choose from over 3,300 courses offered by over 4,600 institutes in 35+ countries across the world. Some countries where you can study with the help of this loan include:

  • United States of America (USA)

  • United Kingdom (UK)

  • Australia

  • United Arab Emirates (UAE)

  • Germany

  • Canada

  • France

  • New Zealand

  • Singapore

  • Ireland

  • Netherlands

But, what expenses can you pay for with the help of this loan? Some essential costs you can pay for with this loan are as follows:

  • Living costs

  • Study material

  • Course fee

  • Examination fee

  • Laptop purchase

  • Travel fare 

  • Health insurance

 

These may differ from one lender to another. Ensure to ask your lender about the expenses you can pay for with the loan amount.

Why Should You Opt for an Overseas Education Loan

Here are some reasons why an overseas education loan may be the ideal financing option for you:

Substantial Financial Support

You can borrow a massive amount of up to ₹1.5 Crores through a secured international study loan. Meanwhile, you can borrow up to ₹80 Lakhs through the unsecured option. This enables you to pursue expensive courses in some of the world's top universities. It helps spread the educational costs over a long period, making it easier to pay the amount. 

Improved Credit History

These loans can be a great starting point for you to create, build, and maintain your credit history. Timely repayments and efficient loan management can help improve your credit score. This makes it quite easy for you to get loans at favourable terms in the future. 

Tailored Financing Solution

Education loans are customised and tailored to suit the unique needs of students. Even if you do not have a steady income or credit history, you can still get the loan. You can borrow the needed amount with the help of a co-borrower with a stable income and good credit profile. 

 

Lenders usually offer a moratorium period of 6 months to 12 months from the completion of the course. This is ample time for you to find a job with the help of your new qualifications. The repayment schedule usually starts after this moratorium period.  

Easy Accessibility

For students and young professionals, these loans are an ideal option. This is because such individuals usually have a limited credit history or income. They find it difficult to qualify for options like personal loans. If you fall under this category of applicants, an overseas education loan can be an easy way to access funds. 

Preservation of Savings

Instead of depleting your savings to fund your education, consider getting a loan. This option can help you direct your savings towards other financial needs. You can also use it as an emergency fund. You can then pay the cost of your education over a longer tenure with your savings intact. This can help you tackle unforeseen financial obligations with ease.

Borrow in Indian Currency

The amount you borrow for your international education is in the Indian currency. Thus, the repayment is also in the Indian denomination. How can this benefit you? Assume you completed a course in America and found a job there through campus placement. This means you will earn in US dollars, which is higher in value than the Indian rupee. Paying the loan cost becomes much easier and does not strain your finances. Furthermore, the interest charged is also in rupee and therefore lower than the USD. This makes the loan affordable and cost-effective.

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Tips for Choosing the Right Education Loan

Here are some tips and tricks to ensure that you opt for an education loan that suits your needs:

Compare Offers

Before you select an offer, compare it with options provided by other lenders. Check the loan amount, interest rate, tenure, and repayment options. Choose the loan that aligns with your financial situation and repayment capabilities.

Read the Fine Print

Thoroughly review the loan agreement. Pay close attention to the associated loan charges. These include the processing fee, prepayment penalties, and so on. This can majorly impact the overall cost of your loan. Also, check the moratorium period and other clauses mentioned in the agreement. This will help you avoid any surprise expenses in the future. 

Use EMI Calculator

When planning to apply for the loan use tools like an education loan EMI calculator. It enables you to instantly compute the instalment amount of your loan. You can also access the amortisation schedule. It helps you to check the breakdown of each EMI and the total repayment cost. Such insights can help in informed decision-making. So budget with the help of these tools and manage your loans effortlessly.

Eligibility Criteria and Documents Required

Here are some common factors lenders consider when determining your loan eligibility: 

  • Academic achievements

  • Choice of course and university 

  • Grades and scores

  • Professional experience

  • Projects

  • Internships

  • Financial status

 

Alongside this, you may also be required to submit the following documents:

  • ID and address proof

  • Academic documents

  • Income documents

  • Collateral-related documents

  • Form I-20 (if applicable)

  • Unconditional offer letter from a university

FAQs on Study Loan Abroad

How is the loan amount disbursed?

The amount is usually disbursed to the educational institution in instalments. This is done as per the set fee structure. Some lenders may disburse the funds directly to the student. They can then use the loan amount for other purposes like living expenses as well. It depends on the lender’s policies and the terms of your loan agreement. Seek clarification from the lender when applying.

Can I prepay my overseas education loan?

Yes, you can prepay or foreclose your loan without having to pay any extra charges. Do check the terms and conditions for using this facility before opting for it.

Do I need to provide collateral for an overseas education loan?

No, it is not mandatory. You can choose between a secured or an unsecured loan option when applying. However, the loan amount offered under unsecured loans on Bajaj Markets is just up to ₹80 Lakhs. Meanwhile, with collateral, you may be eligible to get an education loan of up to ₹1.5 Crores.

Can I switch universities mid-course using the same loan amount?

Yes, you can switch universities mid-course and use the loan amount to cover the costs. You will need to submit the admission documents from the new university. If there are any changes in education or other costs, inform your lender. Keep in mind that this is subject to the lender's policies.

What happens to the loan if I fail my mid-semester exams?

If you fail the semester, the tuition fee and course duration may increase. You can reach out to your lender to get a higher loan amount and extend the tenure. In such cases, the lender may reassess your loan eligibility and revise the terms of the borrowing. This is subject to the lender’s policies. For this, you may be required to provide some additional documents as well.

What happens to the education loan in case of an unforeseen event occurs in the country where I am studying?

The lender may stop tranche disbursements to the financial institution in situations like war and natural calamities. In case of the student’s unfortunate demise, the insurance may be utilised. 

✓ Up to 100% Funding ✓ Interest Rates starting from 10.25% p.a. ✓ Get up to ₹75 Lakhs Check Eligibility
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