The biggest challenge for the students who are planning to study abroad is to arrange for funds. Cost of living and studying in a country like the USA can be very expensive and everyone can’t be able to bear the expenses of the same. However, your dreams of studying in a lavish country like the USA and want to do something big in your life usually drive you to overcome these challenges.
Arrangingfunds is one of the most important parts of seekingadmission to universities in the USA. Numerous banks have understood thiscondition and solved the complexity of financing higher studies by providingeducation loan to eligible students. To know more about the details to get aneducational loan to Study in the USA, read the article given below.
Procedure to Apply for Educational Loan
Generally, the application process for most of the universities in the USA commences from October. So, it is advised that if you are interested in studying in the USA universities, you must start the process of loan evaluation, loan sanction etc. well in time. The disbursement of the loan can only be done after getting the confirmation of admission from the respective university. You can also compare the loans offered by other banks before applying for an education loan.
Important Factors to Keep in Mind Before Applying for an Education Loan
Before applying for a student loan, you are required to have a concrete idea of how much money you require to study from the US universities. Some of the important factors that you need to focus while applying for the education loan are:
- Decide the course you want to pursue and the university in which you want to seek admission.
- Make an estimate of the amount you require to finance your studies.
- Make a list of the necessary documents.
- Find a guarantor for your loan.
- Don’t forget to apply for the education loan three months prior to the visa interview date.
Necessary Documents for Getting an Education Loan
While giving a loan to a student, banks also verify a few details about the student seeking loans such as whether you and the university in which you have secured admission are genuine or not. The basic documents required by the banks to process an education loan are as follows:
- Admission letter given by the university
- A duly filled loan application form
- The estimated cost of study
- Mark sheets of Class 10 and 12 (in original)
- IT return of the co-borrower
- PAN card and other relevant identity proof of the student and the co-borrower
- Income proof of the co-borrower
- A copy of Passport
- Details of assets and liabilities of parents/ guarantors
Expenses Covered Under Education Loan
Don’t forget to check what other expenses are covered in your education loan scheme. Nowadays, numerous loan schemes are available in the loan market which covers different expenses other than the tuition fee of the university. Some of the common expenses covered under the education loan scheme are as follows:
- College and hostel fee
- Examination, laboratory and library fee
- Expenses related to books, equipment etc.
- Caution money deposit, building fund etc.
- Expenditure incurred in travelling
- Insurance premium for the student (if applicable)
- Other expenses such as project work, study tour etc.
Important Points to Keep in Mind
- Moratorium period: This is the time during which the borrower is not required to repay any amount to the bank.
- Loan Margin: Generally, the bank doesn’t provide the 100% loan amount needed by the borrower. Majority of the banks offer 90% of the total amount of the loan.
The most important thing to note is to check whether you are eligible to apply for the loan or not. The general eligibility criteria of the banks are:
- The loan applicant must be a citizen of India.
- The academic record of the student must be very strong.
- The applicant must be seeking admission to a professional or technical course at the university.
- The student must have secured admission to the foreign university at the time of applying for the loan.
- Applicants must be at least 18 years of age to apply for the loan.
Some of the Indian banks offering loans to students to study in universities in the USA are provided below:
- HDFC Bank Education Loan for Foreign Education
- SBI Student Loan Scheme
- SBI Global ED-VANTAGE Scheme
- Oriental Bank of Commerce Education Loan
Read the Agreement Carefully
One of the most important aspects while takingthe loan is to read the loan agreement carefully. Don’t forget to readcarefully the terms and conditions of the loan and then move forward. In caseyou have any doubt regarding anything, don’t hesitate and clear the same withexperts or you can check from other banks as well.