international degree
27th Aug 2023
Manisha Sharma

Unlock Your Dream Education: Guide to Getting Approved for Student Loans

Explore how educational loans can make studying abroad a reality. Learn key factors, eligibility criteria, and expert tips for a smoother loan approval process.

Studying overseas opens up numerous doors of opportunities, allowing you great exposure to diverse cultures, top-quality education, and valuable networking opportunities. However, with the mounting expenses, the idea of pursuing higher education in the best foreign university might seem difficult to achieve.

Well, fret not! The most viable option is to get approval for a student loan to finance your dream education. With that being said, it’s important to understand a few factors involved in getting an educational loan approved. Let’s delve into the details.

Why should you take an educational loan to study abroad?

Taking an educational loan can be a smart move for many reasons. Here are some of them:

  • Financial flexibility to pursue your academic dreams
  • Opting for an educational loan that charges a low interest rate can reduce the overall financial burden
  • Educational loan provides tax relief at the time of repayment
  • By securing an educational loan, you can entirely focus on your studies without worrying about the finances
General best practices to follow to make the educational loan process easier

1. Research thoroughly

Students must have clarity as to which course they desire to pursue and the university before applying for an educational loan. Sometimes students make hasty decisions only to realise later that they did not align with their career goals. Hence, it is important to carefully evaluate course structure and value addition along with other important factors in order to make informed decisions.

Seeking guidance from counsellors or educational experts can provide valuable insights and help you choose the best-suited educational path for you.

2. Check eligibility criteria for foreign educational loan

Next on the list is to know the eligibility criteria required to apply for an educational loan. Outlined below are some of the important criteria:

  • Must have an Indian citizenship
  • Must have a letter of admission from a well-reputed and recognised university
  • Age of the applicant should be a minimum of 18 years to apply for the loan
  • Have a strong academic record to date
The loan is issued to the student, so it is he/she who shall repay in the future.

3. Keep a check on loan amount and its associated policies

When applying for an educational loan, it is essential to keep a check on the amount you are taking and the associated policies and terms attached to it. This will help you plan your finances more effectively. For instance, students must be aware that for education loans of up to INR 4 lakh, some banks may offer loans without requiring collateral. Apart from this, you must familiarise yourself with loan repayment terms and processing fees or hidden charges if any, amongst other things.

4. Compare interest rates

Always compare interest rates offered by different banks to make the best deal. Students must also research the duration of repayment, late payment fees, and other similar aspects. Goes without saying, but even a slightly lower interest rate can make a significant difference in the long run.

Furthermore, it is suggested to choose a bank with a long moratorium period. Here is a list of the top educational loan providers for foreign education in India:

  • State Bank of India
  • Bank of India
  • Canara Bank
  • Indian Overseas Bank
  • ICICI Bank
  • Union Bank of India

5. Maintain a good credit score

When applying for an educational loan, it is important to maintain a good credit history as it directly represents your financial behaviour. Also, a high credit score influences the interest rate you will be offered by the lender. Here are a few pro tips to maintain a good credit score:

  • Pay all your bills on time
  • Keep credit utilisation percentage low
  • Limit credit applications, especially within a short period

Tips to keep in mind while applying for an educational loan in India

1. Apply early

It is recommended to apply for an educational loan early in order to avoid any last-minute hassle. Applying well in advance also leaves room to address any concern that may arise during the application process. The experts at Azent can help you in the entire loan process making it smoother and more manageable.

2. Keep the required documents ready

Check all the documents required to apply for an educational loan and keep them ready with you. This includes the academic document, proof of identity, proof of residence, legal documents, collateral-related documents and more.

3. Plan your EMIs

Properly managing your EMIs and repayment tenure is a crucial thing to keep in mind when availing educational loans. Before finalising your loan amount, check your repayment capacity, and opt for a longer duration if needed. If you’re unsure about the approach, it is best to seek professional advice from the best consultants abroad. In this regard, Azent’s experts can provide you with personalised guidance based on your financial situation.

Why choose Azent to avail an educational loan?

Choosing the right consultant is important for students aspiring to study abroad. Consultants at Azent possess in-depth knowledge of various countries' courses, universities, admission processes, visa and loan processes, and every preparation that goes even beyond this. Here are some compelling reasons why you should choose Azent:

1. Personalised guidance: Azent believes in offering personalised solutions tailored to every student's needs. Whether it's financial planning, understanding the loan process, or admission requirements, consultants are there for you at every step.

2. Loan support: Consultants at Azent go the extra mile by helping students get educational loans of up to INR 2 crores with flexible loan repayment options and an interest rate of as low as 8%.

3. Extensive experience: As an expert with extensive experience in the international education field, the knowledge of consultants spans across countries and courses. Thus, providing students with insights and support throughout the application process.

By and large, Azent ensures students embark on their international education journey with full confidence, knowing they have a reliable support system at every step of the way!

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