Planning to study abroad this fall but are facing financial crunch? Do not worry. There are 10s of banks and NBFCs (Non-Banking Financial Companies) that offer loans to students willing to study abroad.
The overseas education costs are higher compared to studying at home. It includes paying the fee in foreign currency, living costs, books and other expenses. Therefore, the financial institutions offer loans that meet students requirements, but the loan amount varies from one bank and NBFC to another. It depends on the course, duration of study, and the country one opts for.
The Requirements and Conditions
- Parent(s) and student will be co-applicants and there are no margin requirements for loans below Rupees Four Lakhs.
- The loan repayment tenure is between 10 and 15 years. It is based on the amount and differs from one financial institution to another. That said, in most cases, the repayment period begins 6 months to 1 year after completion of education or finding a job, whichever is earlier.
- Axis Bank provides Rs. 10 Lakhs for studies in India, but raises the limit to Rs. 20 Lakhs for overseas education. The margin requirements is between 5% and 15% based on the loan amount and place of study.
In a recent move, the Telangana government, in a budget of Rs. 425 Crores for fast scheme, reserved Rs. 25 Crores for minority students willing to study abroad. The budget of 25 Crores will help 250 students go abroad to pursue higher education.
It is known as the Overseas Study scheme for post-graduate studies in foreign universities starting from 2015-16.
Requirements for Telangana Govt. Overseas Study Scheme
- Maximum age 30-years
- Family’s income limit Rs. 2 Lakhs/annum
- 60% marks or equivalent grades in graduation
- Valid IELTS/TOEFL score cards
- Applying for USA, UK, Canada, Australia, Singapore.
Then there are schemes like Ambedkar Overseas Vidya Nidhi (AOVN) and many other that specially help the people from SC/ST background and minorities. Students willing to study abroad can consider obtaining loan from any of the banks, financial institutions, or under other government schemes.
Source: The Hindu BusinessLine | The Times of India
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