Are you an Indian student with aspirations to study abroad but uncertain about the financial aspect? Don’t let the fear of funding hold you back from pursuing your educational dreams! With the right guidance and support, navigating the study abroad education loan application process can be a manageable and rewarding experience.
In this blog, we’ll walk you through the steps involved in securing an education loan, empowering you to take the first step towards your academic journey abroad. Also, how Peaceful-Loan can help you by taking the stress away and making the journey Peaceful.
1. Research and Planning: Before diving into the loan application process, it’s essential to research various loan options available for studying abroad. Consider factors such as interest rates, repayment terms, and eligibility criteria.
2. Documentation needed for education loan application:
Education loan applications typically require a range of documents to assess your eligibility and financial standing.
Following are the documents needed by lending institutions to proceed with the loan application.
- Students’ / Applicants’ DocumentsKYC DocumentsPan CardAadhar CardPassport Size PhotoPassport Scan (Front & Back)
- Academic DocumentsAdmit Letter + Entrance Exam Score Card10th and 12th Standard MarksheetsGraduation / Diploma CertificateEach Semester or Year Marksheet + Official Transcript
- Financial Documents
Only for students that have 2+ years of work experience
6 months payslips
1 year of account statement
2 years of form 16 or ITR filings.
If there are any cibil issues, please highlight them while submitting documents.
- Co-Borrowers documents.
Co-Borrower should be parents or blood relatives
KYC Documents
Pan Card
Aadhar Card
Passport Size Photo
Passport Scan (Front & Back)
- Financial Documents – for salaried income.
6 months payslips
1 year of account statement
2 years of form 16 or ITR filings.
Office Id
If there are any cibil issues, please highlight them while submitting documents.
- Financial Documents – Business Income1 year account statement for self and business.Business registration certificate.2 years of audited ITR filings with UDIN number with computation and P&L (for business and self)
If there are any cibil issues, please highlight them while submitting documents.
- Property Documents (for secured loan)Registered complete sale agreementChain of ownership agreements if applicableShare certificateOccupancy certificate / Completion certificate / Approved building plan.
Property must be owned by the co-borrower and not pledged for any other loans.
3. Selecting the Right Lender:
Applying for an education loan multiple times can lead to a drastic drop in CIBIL score, this could reduce your chances of securing an education loan. Hence an expert guidance is necessary to avoid applying for wrong financial institutions. Do reach out to us so we can help you identify the right lender amongst the entire set of lenders.
Choosing the right lender is crucial in securing an optimal loan for your education abroad. Consider factors such as the lender’s reputation, interest rates, loan terms, processing fees, and customer service. Explore options offered by banks, financial institutions, and government schemes tailored for education loans to find the best fit for your needs.
At Peaceful-Loan we have a process in place to guide you through the maze of lenders available to help you choose the best option that can get you optimal loan terms.
- Public Banks: State Bank of India, Bank of Baroda, Union Bank of India
- Private Banks: ICICI Bank, Axis Bank, Yes Bank, IDFC First Bank.
- NBFCs: HDFC Credila, Avanse, InCred, Auxilo, MPower, Prodigy
- U.S.A. Co-Borrower Lenders and many more.
4. Submitting the loan application:
Once you’ve selected a lender, it’s time to submit your loan application. Complete the application form accurately and attach all required documents as per the lender’s instructions. Pay attention to details and provide comprehensive information to expedite the processing of your application.
Our loan processing team will help you at each step of the process and keep your mind at ease with regular updates on the status of your loan application.
5.Loan Approval and Disbursement:
Loan approval:After submitting your application, the lender will review your documents and assess your eligibility for the loan.
Repayment Terms and Conditions: Familiarise yourself with the repayment terms and conditions outlined by the lender. Understand factors such as interest rates, repayment tenure, grace periods, and prepayment options. Develop a repayment plan that aligns with your financial capabilities and ensures timely repayment of the loan post-graduation.
There are no foreclosure charges on prepayment of education loan from Banks.
Our team will help guide you through NBFCs terms when necessary.
Processing fees payment:Once the loan is approved by the lender, the lender would need processing fee payment done by the student.
Agreement:Post processing fee payment, Agreement is signed between Bank / financial institution and student + co-borrower. Post signing the agreement, Student will receive a proper letter of approved loan.
Disbursement: Education loan is disbursed only on demand and only as much as the student needs. Banks may expect you to have met a few conditions before disbursements, e.g. securing VISA. Upon meeting all conditions, the loan amount will be disbursed directly to the educational institution to cover tuition fees. Accommodation and other related expenses can be disbursed in student or co borrower’s account.
Once the loan is approved, our team takes you through the loan terms and helps you understand them before you go ahead with the disbursement.
6. Utilise the loan disbursement wisely:
Make informed decisions regarding the utilization of the loan amount disbursed to you. Budget wisely to cover essential expenses such as tuition fees, accommodation, living expenses, and study materials. Avoid unnecessary expenditures and prioritize your academic pursuits to maximise the value of the education loan.
You only pay the interest on the disbursed amount.
7. Stay informed and seek assistance:
Throughout the loan application process, we at Peaceful-Loan.com keep you informed and assist you so that you have a peaceful experience.
Embarking on your educational journey abroad is an exciting and transformative experience, and securing an education loan shouldn’t be a daunting task. By following these steps and seeking guidance when needed, you can navigate the loan application process with confidence and embark on a fulfilling academic adventure.
Do get in touch with us today to embark on your journey towards a brighter future
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