Education Loan
Student Loans for International and Study Abroad Students
If you are looking for a student loan to fund your international education, we can help. Whether you are an international student or not, finding a student loan doesn’t have to be difficult. With our student loan support team, you can find the right loan within days—and then apply with our partners.
Why International Education Loans?
Studying overseas is expensive, and many students struggle to fund their international studies. Scholarships and grants are available, but they are very competitive and rarely cover all of your expenses.
A loan can cover up to the total cost of attendance, as determined by your school, minus any other aid received.
Here are just a few of the costs your international student loan can cover: Tuition, Room and Board, Books, Travel, Health Insurance, and Living Expenses.
How I can obtain an Education loan?
Student loans for studying abroad are funds that you have to pay back. They function like any other loan, with a few differences. You can get a student loan from the government or a private bank; it can be a bank from your home country or a foreign bank, in the country you wish to pursue your studies.
Co-signing (along with parents or legal tutors) is very common for private student loans since most teenagers don’t have the credit history to get a loan of such a size.
However, student loans that you can get from the government tend to be more favourable, as the rates are usually lower.
Some loans are based on financial need, while others are much like any other loan and are based on your credit score.
What is the difference between secured and unsecured loans?
Education loans secured with collateral are known as secured loans. Many banks and non-banking financial institutions provide education loans without collateral which are known as unsecured loans. Since the risk factor associated with secured loans is lower, the interest rate of a secured loan may be lesser than an unsecured loan.
All banks and NBFCs require parents to be joint borrowers on an education loan. For loans up to Rs. 4 lakh, no collateral is required. For loans above Rs. 4 lakh and less than Rs. 7.5 lakh, security in the form of a third-party guarantee may be required. The third-party guarantee is an assurance that if the original borrower fails to repay the loan due for any reason, the third-party guarantor will be legally responsible for making the repayment of the education loan. The lender may choose to forego a third-party guarantee if the net worth or income of the parent (acting as joint borrower) is found satisfactory. Collateral of suitable value is required for all education loans exceeding Rs. 7.5 Lakh.
Different banks and NBFCs accept different kinds of collaterals. However, common assets that can be pledged against your education loan are –
Tangible Assets – House, Apartment, Bungalow, Shop, Non-agricultural Land, Vehicle etc.
Intangible Assets – Fixed Deposit, Life Insurance, Stocks etc.
The value of collateral required by your bank or NBFC can be equal to, less than, or greater than your loan amount. Every student has a different profile and set of requirements. Hence, the value of collateral depends on various factors which include –
Academic history of the student – It may happen that a meritorious and deserving student does not have an asset to pledge against his/her education loan. In such cases, some banks and NBFCs may provide an unsecured loan. Students with extraordinary merit and an exceptional academic track record have a high probability of getting an unsecured education loan.
The creditworthiness of the co-borrower – Creditworthiness is a trustworthiness factor determined by the lender after a detailed evaluation of a co-borrower’s credit history, financial status, and net worth/income. It helps lenders analyze the borrower’s capability to repay the loan on time. Students whose co-borrowers have a good credit score, a stable income, and a clean financial reputation may get some relief from collateral requirements.
The reputation of the academic institute: Banks and NBFCs run a high risk of loss on unsecured education loans as the student may not get gainful employment opportunities after course completion. In such cases, the reputation and ranking of the academic institute play a very important role. Students with confirmed admission to top-ranking institutes in the world have a high probability of getting high-paying jobs. Hence, their ability to repay the loan is substantially enhanced.
How Irish can help students to obtain Education loans?
Irish Expert works with all the major lenders in the market. Using a data-driven approach, our channel partner helps students make the right choice while picking a lender who offers the lowest rate of interest with the maximum chances of approval. Students can either get the documents picked up from the doorstep by our partner’s relationship officer or upload them on the website. Students can track the entire education loan process online and a dedicated counsellor is available all the time to resolve queries or escalate any delay in the process.
Please ask your Processing Officer if you need Education loan assistance and we are happy to process it for you.