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% |
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
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 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.
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
Education Loan Partners
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
