Here’s how an international study loan can propel your academic ambitions.
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.
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% |
*Disclaimer: The mentioned rates are subject to change at the lender’s discretion.
To calculate your Education Loan EMI, you can use the formula given below:
EMI = [P × r × (1+r)^n] / [(1+r)^n−1]
Where,
P = the principal loan amount,
r = the monthly interest rate (annual rate divided by 12),
n = the loan tenure in months.
Alternatively, you can also use a dedicated Education Loan EMI calculator online. This is often easier and provides more detailed information, such as the principal and interest breakup for each installment and provide a full repayment schedule.
Simply enter your required loan amount, loan tenure (in months or years), and the applicable interest rate. The tool will instantly calculate the EMI amount as well as show an amortisation schedule for easier budget and repayment planning.
Get a loan amount as high as ₹1.5 Crores to unlock the opportunity to pursue your education abroad
Enjoy interest rates starting from just 10.25% p.a. and save on repayment
Pay up to 100% of your tuition fees, living expenses, examination fees, etc. with the help of an education loan for overseas studies
Comfortably repay the loan over a tenure ranging up to 15 years
Prepay or foreclose the loan without having to pay any additional charges
Receive the loan amount within 10 days of loan approval
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.
Get your loan approved before receiving your Form 20-I or admission letter
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.
Pay just 0.5% TCS for overseas remittance with an education loan for overseas studies
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.
Here are some reasons why an education loan for overseas studies may be the ideal financing option for you:
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.
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.
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.
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 education loan for overseas studies can be an easy way to access funds.
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.
The amount you borrow for your international education is in 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 rupees and therefore lower than the USD. This makes the loan affordable and cost-effective.
Here are some tips and tricks to ensure that you opt for an education loan that suits your needs:
Before you select an offer, compare it with the 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.
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.
When planning to apply for the loan, use tools like an education loan EMI calculator. It enables you to instantly compute the installment 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.
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
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
The amount is usually disbursed to the educational institution in installments. 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, such as 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.
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.
No, it is not mandatory. You can choose between a secured and 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.
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.
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.
The lender may stop tranche disbursements to the financial institution in situations like war and natural disasters. In case of the student’s unfortunate demise, the insurance may be utilised.
An education loan for studies abroad is a type of financial assistance offered by banks and financial institutions to help students cover the costs of higher education in a foreign country. It is designed to ease the financial burden on students and their families so they can pursue their academic and career goals internationally.
To be eligible for an education loan for abroad studies, you must be an Indian citizen who has secured confirmed admission to a reputable foreign university and is at least 18 years old. You will also need a co-applicant, typically a parent or spouse, who has a stable income and good credit score. Moreover, the applicant might need to have a strong academic record and may need to provide collateral depending on the loan amount.
The repayment period for an education loan for studies abroad is typically up to 15 years. Repayment usually begins after a moratorium period of up to 12 months after the course’s completion. Some lenders may offer different tenures based on the course type, such as 10-12 years for undergraduate and 12-14 years for postgraduate courses.
Yes, Indian citizens can avail of tax benefits on an education loan for higher studies abroad, under Section 80E of the Income Tax Act, 1961. Remember that the deduction can be claimed on the interest portion of the loan, not the principal amount. This applies to individuals who choose the old tax regime.
To apply for an education loan for studying abroad, you will need academic documents (marksheets, admission letter), KYC documents (identity and address proof for you and your co-applicant), proof of income for the co-applicant, etc. You may also need Form I-20, bank statements for the co-applicant, photos, and collateral documents depending on the loan amount.