• Education Loans

Foreign Education Loan Approval Factors: Program Type and Country

1146 Reads
3 min Read

By:CANAM Group
Updated On:Feb 28,2024 01:25 PM IST

An education loan covers various costs for a student such as tuition fees, travel expenses and other education-related expenses. Deep dive into this article to know some important details about overseas education loans such as the documents required, eligibility criteria for education loans, the education loan process and how the type of program and country students choose can affect their overseas education loan approval.

Foreign Education Loan Approval Factors.webp

A lot of international students prefer taking education loans to fund their abroad studies because they get a higher loan amount and longer repayment tenure. Also, today there are many banks which provide study loans to pursue foreign education without collateral. This article is for all those who have many questions in their mind regarding foreign education loans.

Read this article to learn what is an international education loan, its types, eligibility criteria for foreign education loans, factors affecting overseas education loan approval, documents required to get an education loan, foreign education loan process and how the type of program and country can affect the foreign education loan approval.

What is an International Education Loan?

An international education loan or an overseas education loan helps students cover the costs associated with studying abroad. They are usually provided by banks or credit unions and cover various costs like tuition fees, travel costs and living expenses. The repayment time for these loans is longer and one can repay them after graduation.

Eligibility for Foreign Education Loan

Students looking for foreign education loans must know that meeting eligibility criteria is one of the best ways to secure an international education loan. Here is a list of eligibility criteria students must fulfil to get a foreign education loan.

• Applicant must be a resident of India to be eligible for an education loan.

• Students must have a strong academic record to facilitate speedy approval of education loans.

• Candidates must have received a confirmation letter from a recognized foreign university for an applied program.

• The applicant must be going for a graduate/postgraduate degree or a PG diploma.

• To get an education loan the age of students must be between 18 and 35 years.

Foreign Education Loan Documentation

Besides fulfilling the eligibility criteria students would be required to submit various documents to apply for an overseas education loan such as age proof, residence proof and identity proof. Following is the list of various documents one must keep handy.

Foreign Education Loan Approval Factors (2).webp

Types of International Education Loan

There are various types of loans available in the market depending upon the needs of individuals. The loans can be categorized based on location and course of education. In this topic let's learn about types of foreign study loans based on collateral.

Secured Education Loan	A secured education loan is a type of loan where a borrower needs to provide collateral to banks such as fixed deposits or property to secure the loan. If the borrower fails to repay the loan the bank can use the collateral to get money back. A secured education loan for foreign education comes at a lower rate of interest.
Unsecured Education Loan	An unsecured education loan is a loan where a borrower doesn’t need to provide any collateral to the loan provider. Due to no security, the interest rates of unsecured loans are higher than secured education loans.

Factors Affecting Foreign Education Loan

Foreign education loan helps individuals to study abroad after 12th in countries like the USA, UK, Canada and Australia. Before taking an international education loan a student must know some factors which can affect their loan approval. Given below is a list of factors which can affect the approval of foreign education loans.

Credit History	A good credit history can help students to get foreign education loans faster. Students can show a good CIBIL score for their co-applicant. If the CIBIL score shows that the previous loans taken were paid on time, it will increase the chances of getting loan approval.
High Earning Potential	Students may get quick approval of their overseas education loan if they choose a high-earning potential course. The courses like medicine, management and engineering have a great earning potential. Therefore, it's important that students choose their program carefully as banks don’t sanction part-time, correspondence or distance courses.
Academic Record	This is good news for all the high achievers. A good academic record can increase the chances of getting a loan approved. It doesn’t mean that average students won't be able to get education loans. An average student who enrolled in a premier academic program will have a higher chance of getting an education loan.
Institutional Accreditation	Students applying for foreign study loans should be aware of this thing that banks decline the education loan if the student is applying to an unrecognized institute. Hence a student must apply to a recognized institution to have a higher chance of getting an education loan.

International Education Loan Process

After knowing about what is an international education loan, types of education loans and eligibility criteria next step is to know about the international education loan process. Following is the step-by-step process of getting an international education loan for abroad studies.

• To apply for a foreign study loan for abroad studies, a student must be an Indian citizen, having secured admission into a recognized college/university.

• A student must have a co-applicant to execute the loan process. (Parents, Siblings, Spouse)

• For the loan amounts ranging between 4-7.5 Lacs, one needs to have a third-party guarantor.

• For loan amounts above 7.5 Lacs, collateral is mandatory. (Example-Property, Fixed Deposits)

• Once the loan application is approved, the banks disburse the required amount directly to the college/university as per the given fee structure.

• The loan is repaid by the student. Generally, the repayment starts when the proposed course is completed. There are some banks that even provide a relaxation period of 6 months after getting a job or a year after the completion of studies for repayment.

• The banks use the Marginal Cost of Funds based Lending Rate (MCLR), plus an additional spread to set an interest rate for education loan.

How does the program type and country affect International Education Loan Approval?

Foreign study loan approval depends on various factors such as credit history, earning potential of the program, academic record and institutional accreditation. Two factors which can affect international education loan approval are as follows:

Type of Program

The approval of an education loan depends on the type of program students are applying for. If students are applying for a program which doesn’t have a high earning potential, then most banks will decline loan applications. On the other hand, courses like medicine, engineering and management that have earning potential then the banks may quickly approve the education loan. If a student is planning to pursue any course from a well-known institution, then it also adds weight to the application.

Further, the approval of overseas education loans will also depend on the cost of the program. If the program is very expensive then the banks may reject the application due to the risk associated with it. The duration of a program is also a crucial factor impacting loan approval. The longer courses with a duration of 4 years will have less chance of approval as they are seen as riskier by the banks while shorter courses such as certificate or diploma courses. The approval of study loans can also be affected by post-graduation opportunities offered by the program.

Type of Country

Another factor which affects the approval of an overseas study loan is the type of country the applicant chooses. The developed countries have higher approval rates due to factors such as stable political systems, well-renowned institutions and strong economies. Such countries are the USA, Australia, Germany, Canada etc.

On the other hand, developing countries have lower approval rates due to factors including quality of education, political uncertainty and economic instability. Loan approval also depends on the living expenses of the country. A lower cost of living will be seen as less risky by loan providers and may result in faster loan approval. Government policies are another factor which can impact the study loan approval. the banks may approve study loans if a student is going to study in a country where the government offers scholarship programs or loan schemes to foreign students.

Conclusion

This article would have definitely helped students who came here while exploring international education loans to study abroad. After reading this piece of content our readers now know what is an overseas study loan, types of international education loan, eligibility criteria for foreign education loan, factors affecting overseas education loan approval and foreign education loan process. They also know how the type of program and country they choose will impact their study loan approval. for further queries they can connect with canam experts.

FAQ

What is the eligibility for an abroad education loan?

To be eligible for a foreign education loan student must be a citizen of India.

Which bank is best for education loans?

Some of the best banks for foreign education loans are Axis Bank, HDFC Bank and ICICI Bank. Students can connect with Canam to get education loans at affordable rates from these banks.

Can I get a 1 crore education loan?

Yes, if you are eligible you can get 1 crore to fund your foreign education from ICICI Bank. Connect with canam experts for an easy foreign education loan process.

What are the reasons for the rejection of student loans?

Some common reasons for rejection of student loans are insufficient credit history, inadequate income, inaccurate application and lack of collateral.

Is it easy to get an education loan for abroad studies?

Yes, in today’s time, it’s very easy to get an education loan for abroad studies. Our readers can also take the assistance of Canam experts to get a higher loan amount at an affordable interest rate.

Get great articles direct to your inbox

The latest news, articles, and resources, sent straight to your inbox every month.

Popular Universities to Study Abroad

World class education waiting for you.

The Hotel School - Southern Cross University - Sydney Campus

New South Wales, Australia • 5 Programmes

Tuition Fee : AUD 30500-31500 / year

North Island College - Port Alberni Campus

British Columbia, Canada • 6 Programmes

Tuition Fee : CAD 16500-20000 / year

Fresenius University of Applied Sciences - Wiesbaden Campus

Hesse, Germany • 1 Programmes

Tuition Fee : EUR 0-0 / year

Education Centre of Australia (ECA) Group - ECA College of Health Sciences - Brisbane Campus

Queensland, Australia • 1 Programmes

Tuition Fee : AUD 0-0 / year

Drake University

Iowa, USA • 88 Programmes

Tuition Fee : USD 50000-52000 / year

Imperial College of New Zealand

Auckland, New Zealand • 2 Programmes

Tuition Fee : NZD 0-0 / year

University of South Wales - Glyntaff Campus

Wales, UK • 56 Programmes

Tuition Fee : GBP 13000-14000 / year

Engineering Institute of Technology - Melbourne Campus

Victoria, Australia • 4 Programmes

Tuition Fee : AUD 0-0 / year

View All Universities

Latest at CANAM

Events, webinar, college / university visits and more.

The International Education Fair

Study in Canada, UK, USA, Australia, New Zealand, Dubai, Singapore, Germany, Ireland, France

Ahmedabad • 11:00AM

In-Person Event

University Visits - Lakehead University

Study in Canada • University Visit

Ahmedabad • 12:30PM

In-Person Event

The International Education Fair

Study in Canada, UK, USA, Australia, New Zealand, Dubai, Singapore, Germany, Ireland, France

Hyderabad • 11:00AM

In-Person Event

Top countries destinations

Popular university and colleges for Studying abroad.

Bond University Queensland
Central Queensland University - Rockhampton, North Campus Queensland
Charles Sturt University - Wagga Wagga Campus New South Wales
Deakin University - Geelong Waurn Ponds Campus Victoria
Engineering Institute of Technology - Perth campus Western Australia
Griffith University - Nathan Campus Queensland
La Trobe University - Bendigo Campus Victoria
LCI Melbourne - Art & Design School Victoria

Ara Institute of Canterbury - City Campus Southland
Aspire 2 International - Auckland Campus Auckland
Auckland University of Technology - City Campus Auckland
Eastern Institute of Technology - Hawke Bay Campus Hawke's Bay
Manukau Institute of Technology -Manukau Campus Auckland
Massey University - Auckland Campus Auckland
Nelson Marlborough Institute of Technology (NMIT) - Nelson Campus Southland
New Zealand Institute of Business & Technology (NZIBT) Auckland
The University of Waikato - Hamilton Campus Hamilton

Kent state university Ohio
San Jose State University California
Wright State University Ohio
Clark University Massachusetts
Rowan University New Jersey
Arkansas State University Arkansas
University of Wisconsin Milwaukee Wisconsin
Southern Illinois University Edwardsville Illinois
University of Findlay Ohio

Popular English Language Proficiency Exams

Blogs and Articles

Curated content to keep you updated on the latest education trends, news and more.

IELTS Speaking Questions

The IELTS exam is a popular way for people who want to study overseas, but don't speak English as their first language or where it's not spoken often....

Updated on • Nov 21,2024 05:49 PM IST • IELTS

IELTS Writing Task

IELTS Writing Task One of the most crucial aspects to scoring well on an exam is writing. The IELTS assesses both Academic and General Training in ...

Updated on • Nov 21,2024 05:46 PM IST • IELTS

Best Cities to Study in Canada

Canada is home to lakhs of international students, making it one of the most popular study abroad destination in the world. The country is celebrated ...

Updated on • Nov 21,2024 05:23 PM IST • Study in Canada

Universities in Ireland for International Students

Ireland is among the safest and most welcoming nations in the world. The country provides high-quality education and excellent research opportunities ...

Updated on • Nov 21,2024 12:25 PM IST • Ireland

Post Study Work Permit in Australia

Australia is known for its scholastic brilliance and magnificent job opportunities. Due to this, numerous students are opting to study in Australia to...

Updated on • Nov 18,2024 01:57 PM IST • Australia

Reasons to Study in UK

Studying in the UK opens up a world of opportunities and experiences for international students. With its rich history, reputation of having...

Updated on • Nov 13,2024 03:41 PM IST • UK

Bachelor of Architecture in Canada

Canada is considered the most popular study destination in the world because of its world-class education. Architectural universities and colleges in ...

Updated on • Nov 13,2024 11:16 AM IST • Study in Canada

Tips to Prepare for CELPIP Reading Module

Are you thinking of permanently living in Canada? We would like to tell you that you have made a great decision. But there is just one thing you need ...

Updated on • Nov 08,2024 04:17 PM IST • CELPIP

Master's in Management (MIM) in UK: Best Universities, Scholarships, Jobs & More

The UK provides a wealth of education and a robust economy, with prestigious business schools that offer a Master's in Management (MIM). Business scho...

Updated on • Nov 07,2024 05:30 PM IST • study in the UK

Masters in International Business (MIB) in USA

Masters in International Business (MIB) is a 1-2 years long postgraduate degree program offered in the USA. The program offers a unique blend of busin...

Updated on • Nov 06,2024 01:23 PM IST • USA

Study in New Zealand After Graduation

Thinking about pursuing your higher education in a serene and culturally diverse country? New Zealand is indeed your best option! The sceneries of Ne...

Updated on • Nov 06,2024 01:22 PM IST • New Zealand

Why Study in France

Art and culture are among the most attractive factors that make France a wonderful choice as a study destination. The Eiffel Tower, Notre-Da...

Updated on • Nov 06,2024 12:38 PM IST • France

IELTS Line Graph Model Answer

IELTS Line Graph is one of the two tasks of IELTS writing section. In this task, you will get a visual representation to explain in 150 words. It show...

Updated on • Nov 02,2024 04:35 PM IST • IELTS

Common Reasons for Student Visa Rejection in the USA

Studying in the United States is a dream for countless students worldwide. The idea of exploring expansive campuses, connecting with a diverse global ...

Updated on • Nov 01,2024 05:40 PM IST • USA

Statement of Purpose (SOP) for Undergraduates : Format, Sample & Expert Tips

The Statement of Purpose is a cornerstone of every student's dream of pursuing higher education in a foreign country. An SOP allows students to highli...

Updated on • Oct 28,2024 05:52 PM IST • SOP

January Intake in UK : Universities, Timeline, Deadlines & More

Before choosing the UK as your study abroad destination, it is essential to learn about the three study intakes: Fall, Winter, and Summer, beginning i...

Updated on • Oct 28,2024 04:17 PM IST • study in the UK

Part-time Jobs for International Students in USA

A part-time job is more than just extra income; it's a stepping stone to experience, grow, and discover your potential. Going by this quote you might ...

Updated on • Oct 25,2024 05:56 PM IST • USA

Top Perks of Studying in New Zealand

Every year, a large number of students take a leap towards their dream by beginning to study in New Zealand. This island country has the all resource...

Updated on • Oct 25,2024 01:54 PM IST • New Zealand

Top MBA Courses to Specialize in Abroad

MBA (Master of business administration) is a prestigious postgraduate qualification recognized internationally. It is designed to develop ...

Updated on • Oct 25,2024 01:52 PM IST • Study Abroad

Study Abroad: Physiotherapy Guide

With mechanization and inactive lifestyles, people face common muscular-skeletal problems that include neck pain, osteoarthritis knee, backache, a...

Updated on • Oct 25,2024 01:42 PM IST • Study Abroad Guidance

Foreign Education Loan Approval Factors: Program Type and Country

Table of Contents

What is an International Education Loan?

Eligibility for Foreign Education Loan

Foreign Education Loan Documentation

Types of International Education Loan

Factors Affecting Foreign Education Loan

International Education Loan Process

How does the program type and country affect International Education Loan Approval?

Type of Program

Type of Country

Conclusion

FAQ

Events, webinar, college / university visits and more.

Popular university and colleges for Studying abroad.

Bond University Queensland

Central Queensland University - Rockhampton, North Campus Queensland

Charles Sturt University - Wagga Wagga Campus New South Wales

Deakin University - Geelong Waurn Ponds Campus Victoria

Engineering Institute of Technology - Perth campus Western Australia

Griffith University - Nathan Campus Queensland

La Trobe University - Bendigo Campus Victoria

LCI Melbourne - Art & Design School Victoria

University Canada West British Columbia

University of Windsor Ontario

Dalhousie University Nova Scotia

Carleton University Ontario

Cape Breton University Nova Scotia

University of ottawa Ontario

University of saskatchewan Saskatchewan

University of regina Saskatchewan

University of guelph Ontario

Ara Institute of Canterbury - City Campus Southland

Aspire 2 International - Auckland Campus Auckland

Auckland University of Technology - City Campus Auckland

Eastern Institute of Technology - Hawke Bay Campus Hawke's Bay

Manukau Institute of Technology -Manukau Campus Auckland

Massey University - Auckland Campus Auckland

Nelson Marlborough Institute of Technology (NMIT) - Nelson Campus Southland

New Zealand Institute of Business & Technology (NZIBT) Auckland

The University of Waikato - Hamilton Campus Hamilton

University of Warwick England

De Montfort University England

University of West London England

University of Strathclyde Scotland

Aston University England

University of Bath England

University of Liverpool England

Durham University England

Newcastle University England

Kent state university Ohio

San Jose State University California

Wright State University Ohio

Clark University Massachusetts

Rowan University New Jersey

Arkansas State University Arkansas

University of Wisconsin Milwaukee Wisconsin

Southern Illinois University Edwardsville Illinois

University of Findlay Ohio

Popular English Language Proficiency Exams