How To Give A Kickstart To Your Career With Education Loan For Abroad Study Via GyanDhan?

For days, Arzoo has been waiting for a letter from Carnegie Mellon University. It is finally delivered, and with it, a dream has come true. However, after a joyous hour, the other shoe drops. The tuition for an undergraduate student is USD 57,560.

To fund it and all the other expenses that come with studying abroad, the family taps into all their long-term investments, from FDs to Mutual Funds. They drain all personal savings to give Arzoo a chance at a better career.

This was a hypothetical situation. But it could as easily be you. Although aspiring to quality education is commendable, financing it through personal savings is an unsmart move. A wiser decision is taking an education loan for foreign studies. 

What is an Education Loan? 

Think of an education loan as a road to fulfilling your goal of studying abroad. Essentially, it is funds borrowed from a bank or a financial institute to pay for higher education. It covers not only the tuition and fees but also accommodation, living expenses, books, and other incidentals. 

What are the Advantages of Taking an Education Loan for Study Abroad?

Currently, 2.5 Lakh Indian students take loans to fund post-secondary education. Why such a large number? Because the advantages of an education loan are legion, the foremost being protection of savings. It keeps your savings untouched and ready as a safety net during an unforeseen circumstance.

In addition, they cover almost all the expenses that come hand-in-hand with an overseas degree, from hostel fee to travelling, from books to gadgets. Since the loan takes care of all these expenses, the burden on your parents is reduced significantly. 

Lastly, student loans come within Section 80E, which means any interest paid on an education loan is tax-deductible for eight years!

What are the Types of Education Loans for Abroad?

There are two types of education loan: secured and unsecured, each with its pros and cons.

Unsecured Loans

Also called education loans without collateral, these do not require you to pledge any asset or guarantee to the lender in exchange for the loan. They are an excellent alternative for students who don’t have an asset to pledge as security.

• The maximum loan amount can range from INR 40 to 50 Lakh (less than secured study loans).
• They have a higher interest rate because the risk to the financial institution is greater.
• They cover about 90% to 100% of the expenses involved in studying abroad.
• They give you one year after the completion of the course as grace period. EMI starts after the end of the grace period 
• They require a co-applicant or co-signer because the sanction of unsecured education loan rests majorly on his/her income and CIBIL score. 
• Their processing time is faster because less paperwork is involved.

Secured Loans

Also called education loans with collateral, these require a guarantee from you or a co-applicant. The guarantee acts as a security for the bank or financial institute if you fail to repay the loan. The collateral can be a moveable asset like an FD or LIC insurance or an immovable asset like a house or non-agricultural land.  Indian public banks make it necessary for applicants to offer collateral for all student loans over INR 7.5 Lakhs.

• The maximum loan amount can be as high as INR 1.5 Crore.
• The interest rate of an education loan with security is lower, since the risk to the lender is less.
• They cover 70% to 100% of expenses depending on the lender.
• They give you 6 months after the completion of the course as  Grace period.
• Their processing time is longer because the paperwork involved is extensive.

Why should You Take an Education Loan through GyanDhan?

The process of education loans for foreign studies is a complicated one. But GyanDhan ensures you fly through it with bare minimum hassle.

Ensuring Eligibility

Right at the start, you need to be sure if your choice of lender offers a loan for the amount, course, and country you have chosen. GyanDhan assures that your effort is not wasted by checking your eligibility before application and sending you a list of the best education loan options for you. Once you get in touch with GyanDhan, you will be assigned an education loan counsellor who will oversee the complete process of your education loan for study abroad till the stage of disbursement. 

Correct Paperwork:

The next step is assembling documents to support your loan application. Each bank and NBFC (Non-Banking Financial Company) has its own set of appropriate paperwork. If even a single record is absent or inaccurately filled, it drastically increases your chances of rejection.

GyanDhan provides you with a customised checklist of the requisite paperwork for your preferred lender and ensures systematic submission. It is why students raise their odds of loan approval by 50% with GyanDhan. For those who pick a secured education, GyanDhan also coordinates with lawyers and property evaluators to guarantee everything is in order.

Easier Submission:

GyanDhan also assures that you are able to submit the loan documents from the comfort of your home without having to physically go to the lender. They offer free document pickup services and set up appointments with the bank’s branch manager to help you submit the documents with the least amount of hassle. Furthermore, if you opt for an education loan for abroad from an NBFC, you just need to use the online document upload facility on GyanDhan’s website to submit all the documents. 

Quicker Approval:

The penultimate stage is approval which involves countless visits to the lender. Because GyanDhan partners with education loan providers, they reduce the number of meetings it takes to process the loan application and expedites the complete process.  

E.g., secured loans from public banks can take up to 50 days, with GyanDhan, that number is 15 days.  An unsecured loan from private banks takes around 15 to 20 days, with GyanDhan, it is as short as 7 days. In the case of NBFCs, the processing time is a mere 3 days if you take an education loan via GyanDhan. 

Faster Sanction:

GyanDhan expedites the last stage of the education loan procedure by continuously following up with your lender. In the case of a delay, loan counsellors get instantly in touch with the upper management to resolve any issues and hasten the process. 

GyanDhan also helps to solve For instance, let’s say you have applied for an education loan for Australia. Australia requires submission of tuition before student visa approval. This policy is in direct contrast to banks, which need a valid student visa before they disburse a loan. GyanDhan makes certain that your bank is aware of the necessary policy for Australian visa and sanctions the disbursement. 

Longer Repayment:

The repayment period of an NBFC is about 10 years. For private and public banks, it can range from 15 to 20 years, based on which bank and course you pick. However, you can extend this duration with the help of GyanDhan. They submit a request for extension on your behalf to the lender and help you get a customised loan that fits your criteria. 

What Education Loan does GyanDhan Recommend? 

GyanDhan advises that the best education loan for foreign studies is a secured education loan from a public sector bank. Only when you don’t have worthy collateral, should you opt for an unsecured education loan from a private bank. Student loans for abroad from NBFCs should be the last alternative.

To Sum Up Abroad Study Education Loans

A degree from a good college abroad is the springboard to a high-paying career, but it comes with a financial burden. An education loan for study abroad studies is an easy solution to this conundrum. Yet in recent times, the approval of education loans from PSBs has decreased by 24%.

Opting to take student loan via GyanDhan warrants that your chances of approval remain high. Besides, they facilitate sanction of low-interest rate unsecured education loans without charging any fee from you!