Confirm with your education finance provider whether you will be required to pledge for any asset security in case of study loan for abroad. As an Indian national, for loans up to 4 lakhs no security is necessary, but above 4 to 7.5 lakhs, collateral security in forms of third party guarantee is compulsory.

1. Things to know while taking study loan
abroad
Education is the most profitable investment one can ever make in his or her life. A quality education will
always help you reap the benefits at regular intervals in life leading to successful and secure future.
Making career abroad not only helps students to improve educational experiences but also takes their
career to new heights. Most of the time it nurtures your child on how to interact with people,
understand their culture, live under foreign conditions and carve a path for their progress while study
abroad. Many students from India are now traveling across the world to other countries to pursue their
higher studies and get a degree from top notch universities abroad.
For this, parents try to offer financial aid to children through traditional finances or taking study loan for
abroad for them. However, often students take these loans without understanding any terms and
conditions. As a result of this they get into financial troubles later on. Today, getting the right education
loan at minimum rate of interest with desirable features has become a daunting task.
Various financial institutions and banks come up with favourable lending programs designed for the
benefits of aspiring students who take foreign study program but cannot do so because of financial
restrictions. In order to make sure that no student is denied of pursuing higher education, these banks
and private finance firms in India have come up with state-of-the-art facilities for educational loan
scheme. So bank a suitable opportunity now and create own your world of successes by pursuing good
and quality higher education in India or abroad.
Many private finance firms have come up with unique and friendly solution for customers such as Pre-
Visa Disbursement Loan, Pre-Admission Loan, Certificate of Availability of Funds, GRE score based loan,

2. Bridge loan, fast track loan etc. which cater exclusively to students’ particular requirements and set
them free from any form of obstacle in their road for career development.
The basic requirement by most financial institutions for sanctioning education loan in India are the age
proof, address proof, nationality proof, mark sheets, certificates and admission proof into a recognized
foreign university. However, to choose the right form of education loan you require a bit of research.
The article guides on certain question to be followed to choose the best education loan for individual:
Loan Funding
Most of the time banks ask for margin money to sanction study loan for abroad which could be
somewhere around 15-20% of the loan amount. However, some leading private sector firms understand
the growing concerns of parents and students and have come up with unique solution of no margin
money costs for education loan. It means your entire education costs are funded by these loan
companies. You can also ask for the maximum loan amount that you can secure for your higher
education.
Processing Fee
Ask your education loan provider about the charges on processing fee. If you have to pay fees then
check if it’s fixed amount or a certain percentage of the loan amount.
Expensed covered
Ideally a study loan for abroad will cover expenses incurred towards the tuition and other fees, library
charges, hostel and mess charges, cost of books and equipment, maintenance, caution fund/building
fund/refundable deposit and cost of passage (for studies abroad), etc. So calculate the total expenses
that have to be borne for foreign education and then talk to your loan provider.
Security Pledge
Confirm with your education finance provider whether you will be required to pledge for any asset
security in case of study loan for abroad. As an Indian national, for loans up to 4 lakhs no security is
necessary, but above 4 to 7.5 lakhs, collateral security in forms of third party guarantee is compulsory.
And, above 7.5 lakhs of loan, tangible security of desired value such as home, non-agricultural land, flat
or any other valuable asset is required.
Documentation
Mostly, lenders need students to submit the age proof, nationality proof, admission proof to a foreign
college or a school and the schedule of the fees. Marksheets of the last qualifying examination also have
to be produced. Keep your passport size photographs handy in order to secure the fund required to
pursue the dream of getting a foreign degree.
Source: http://www.avanse.com/studying-abroad/