Now almost all the banks in India give higher education loan to deserving students who are planning to study Abroad. The Banks have made the application procedure so simple that every student can take advantage and apply for Foreign Education. The main emphasis is that every meritorious student is given an opportunity to pursue higher education for want of financial support.
When the student applies for the loan he becomes the borrower and parents or guardian becomes the co borrower. The Education Loan amount is assessed on the basis of the borrowers papers.
The first and foremost requirement of Banks before processing Higher Education Loan for students with Indian National and Student must have secured admission in University Abroad.
EXPENSES CONSIDERED FOR LOAN
Tuition Fees: The fees payable to University; it also includes the laboratory cost, examination cost.
Living Expenses: This includes Accommodation, Travel, Food, Clothes, Sight Seeing, Books, Utility Bills, etc
The student can also take a loan to pay one of these or both.
| Upto Rs 4 lacs | Co-obligation of parents. No security |
| Above Rs. 4 lacs and upto Rs 7.5 lakhs |
Co-obligation of parents together with collateral security in the form of suitable third party guarantee. |
| Above Rs. 7.5 lakhs | Co-obligation of parents together with tangible collateral security of suitable value, along with the assignment of future income of the student for payment of instalments |
FINANCE
Holiday period or Moratorium period: Course Period + 1year or 6 months after getting the job, whichever is earlier.
Thus the student starts paying the amount only after this period till then he only needs to pay the interest on the amount he withdraws from the Actual Loan amount.
Source : http://www.global-opportunities.net/requirements-of-higher-education-loan.html
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It’s good knowing that loans are still available to students, in these trying times. It’ll definitely help more students get the proper education they deserve.