Education loans in India have come a long way from having conservative approach to more flexible one in recent years. Hard working Students generally have no problem paying back Education Loans after finishing their studies. Overseas Education Loans to Study Abroad help many families getting a substantial funding from both Public and Private sector banks. Medical counseling service has partnered with Indian financial institutions to facilitate Education Loans for Study abroad purposes of Indian Students. We suggest banks based on their services, loan amount required and student's family financial background and location. It's faster to get Education loans these days but proper planning is required so as not to delay the University Admission process. Financial documents are must during Visa Interview and varies from country to country. We guide our students the right approach and timing to get these loans in order to secure I-20 from the University. Most Overseas education loan cover the cost of following and are paid mostly to the University directly:
Scholarships may not cover the expenses incurred as per the above list and hence timely procurement of Education loans goes a long way in maintaining the student finances in order.
Repayment of loans is dependent on banks or financial institution and generally starts after 6 months or 12 months of completion of the course. Grace period of Repayment of loans ranges from 5-15 yrs for loans above 7.5lacs but in some cases can be lower as well.
Universities often gives the relaxation to get the financial documents as mentioned in International Students Financial form until the confirmed admission is secured. But the right time to look out for an Education Loan is after the Universities Application submission. That is the time when a student waits for admission acceptance from the university and can focus on arranging the funds. Once confirmed admission letter arrives, student should apply for Overseas Education loan based on the inputs from our team at M.C.S and in consultation with family and friends. It takes about 2-4 weeks to get confirmation on Loan approval and hence all required documents must be submitted correctly at the same time. It's advisable to approach multiple banks to have flexible options.
Public sector or State Owned banks have generally lower rate of interest than the private sector banks. Rate of interest is charged on Floating rate based and hence is subject to changes as per banks revised rates. So it's always good to consult the bank officials and confirm if the loans offered are Floating rate or Fixed rate interests. Do read the documents carefully. Interest rates generally stays slightly higher for loans upto INR 4-7.5 lacs and goes down for loans upto INR 50 lacs and above.
Overall rate of interest ranges from 10.75%-14.5%. PSL rates are different and vary by about 1-8% extra on base lending rates.
Education loans are subject to the policies of each bank separately. Most Nationalized banks offer loans based on :
Documents required for Overseas Education Loan are same for most banks and requirements are as under.