Education loan for abroad studies (1)

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Education Loan for Abroad Studies
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Introduction to Education Loans to Study Abroad
Money that is borrowed by a person to finance
abroad education-related expenses. You can go
through the first episode of the YouTube series-
Loanflix to get an overview of the abroad
education loans. 
Free of cost service
Govt. Funded Organization
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Benefits of applying for an education loan
Easily available
Repayment tenure usually starts 6 months after
course completion
Entire education-related expense coverage
tuition fee, admission fee, living expenses etc.
Available for a wide range of courses
Income tax benefits can be claimed
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Interest Rate
Collateral
Different Aspects of an education loan for abroad
studies
Processing Fee
Loan Margin
Co-applicant/co-signer
Repayment tenure
Moratorium period
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Interest rate
It is the cost of borrowing money, expressed as a
percentage of the loans principal amount.
Different banks charge different interest rates
on education loan for studies abroad. 
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Collateral
Collateral is an Immovable property (House, Flat
or Land) or any other asset, preferably liquid
asset, such as FD, shares, bonds, gold etc. that
a borrower offers to a financier to secure the
loan.
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Loan Margin
Loan margin is the amount that the
student/borrower needs to incur in order to cover
the entire education expenses. Public sector
banks such as SBI provide 90 expense coverage,
the remaining 10 is the margin.
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Moratorium Period
The moratorium period refers to a time period
during the loan term when the borrower is not
required to repay the loan amount or EMI.
Usually, the moratorium period is course duration
plus 6 months or a year.
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Repayment Tenure
The period during which you are allowed to make
payment via EMI in order to repay the loan
amount. The average repayment period is for 5 to
7 years as per our market survey. However, most
of the banks that provide education loan for
abroad studies have 10 to 15 years as the
repayment tenure.
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Co-applicant/Co-signer
A co-applicant is a person who will qualify for
repayment of the loan, in case, the primary
borrower of the loan is unable to do so. Parents
Spouse Parents-in-law or Guardian Siblings are
accepted as co-applicants. 
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Processing Fee
Banks charge an application processing fee which
is at times refundable, depending on the bank you
will avail a loan from. It is between INR 5000 to
INR 10,000 for public and private banks but for
NBFCs, it is usually 1 to 1.5 of the loan
amount.
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Procedure- Education loan for abroad studies
WeMakeScholars provides the list of documents and
connects you with the nearest bank branch.
Go to the bank branch with required documents and
acquire details of the lawyer and valuator.
Fill the online application form
Step 1
Step 2
Step 3
Post visa approval, student visits the bank and
completes the property mortgage process.
Disbursement agreement is signed and disbursement
of loan amount takes place.
Step 5
Step 6
Step 4
The lawyer and the valuator will submit the
reports to the bank branch
Complete documents are sent to RACPC or RBO.
After the loan is sanctioned, you will be
required to sign the documents
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Documents required- Education loan for abroad
studies
Filled Application Form
Photos and Photo ID Applicant and Co-Applicant
PAN card, Aadhaar card, Driving license, Passport
or voters ID
Proof of Residence and Proof of Admission to a
university
Documents related to your Academics
Financial statement
Co-Applicants Income Proof
Immovable Property Documentation, if the
collateral is needed
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