Many students for their higher studies aspire to get into their dream universities abroad. However, many among them choose an Indian Institute for further studies or settle for a job in India due to the complicated process of getting student loans for studying abroad
Now, is it okay to kill the students’ study abroad aspirations just because of financial shortage?
No right.
This is where overseas education loan comes in to play to help students get admissions in their choice of university.
The Top Finance Organisations in India offering study abroad loans:
Read on to gain information on a general idea about educational loans, with a focus on unsecured and secured education loans.
The need to apply for an Overseas Education Loan?
Depending on the country you plan to choose the overall cost that will be incurred including the fees for studying abroad. A considerable number of Indian students need to apply for education loans considering the high exchange value and the growing cost of higher education, especially from mid-income families. To take an education loan is a smarter financial move rather than spending your savings.
The need of Collateral in an Overseas Education Loan
Different kind of education loans are offered by a number of public sector banks, private banking institutions and financial corporations at varied rates of interest. In case of education loan for India or for a lesser amount like upto 7.5 lakhs the banks do not stress much on the collateral from the borrower which is known as a secured education loan for studies abroad.
However, most organizations ask for a deposit of any asset as collateral for a credit limit crossing 7.5 lakhs. In case the borrower defaults on the loan payments these collaterals are asked to handle the NPAs i.e. the Non-Performing Assets. Although, at the thought of taking a loan against the personal assets as security, scares many borrowers and thus makes them uncomfortable.
As the collaterals are a risky business, many education loan advisors make it possible for the borrower to connect with the Private Indian banks and Non-Banking Financial Institutions through their connections to help them avail unsecured overseas education loan.
To get an Overseas Education Loan without Collateral
Non-bank finance companies, such as InCred Finance and Avanse along with the private banking entities such as Axis and ICICI Bank offer education loans without collateral. Although their procedure and their application requirement and documents are different and as per their respective norms.
In a transparent and quick application process it facilitates sanction of education loans without collateral at low-interest rates which keeps fluctuating as per the economy. By consulting the education loan advisors, they would pre-assess the student profile to determine which lender’s product is the perfect fit as per the borrower’s requirement and need, and would lead you to them.
All the Best!
