Education Loan for Abroad Studies

 

Education Loan for Abroad Studies

An education loan is an easy and convenient way to finance your internationaleducation. You don't need to dip into your family savings or get loan approval where you pledge your assets as collateral to fulfill your study abroad dream. You can take an education loan abroad to cover all your educational and living expenses and pay it off after you graduate and start working abroad.





However, in spite of many technological and credit innovations in this field in the last few years, even today, getting loan for study abroad is quite a tough task in India. The application process is long and tedious. Foreign education loans are actually disbursed in parts, while the interest rates charged are confusing, not standardized and undemocratic.


Why Does a Student Loan in India Take More Processing Time?

By definition, secured education loans are provided by public sector banks on the basis of collateral security. To get education loan abroad in India from nationalized banks, applicants need to pledge some kind of property as collateral security.

Most Indian bank accept two forms of assets: tangible assets and intangible assets.

Tangible assets refer to physically existing, legally registered immovable assets, such as an independent house, non-agricultural land, non-commercial flat, a plot of land with defined boundaries, etc. Intangible asset usually refers to liquid security like fixed deposits, life insurance policies with fixed maturity date, government bonds etc.



About 95% of students who apply for student loans from abroad with state-run banks, pledge immovable properties as collateral security. Government banks in India conduct legal as well as financial verification before deciding the market value of the property pledged as collateral and final education loan amount that can be given to the candidates.

There are many practical hurdles that can come up when you pledge an immovable property as collateral security with public sector banks. In abroad education loan process, the stage in which the bank conducts legal verification and financial examination of the immovable property, takes longer time to complete when there is no legal issue in the house or the land which is mortgaged as collateral security. is found.

For example, in most of the cases, students who lose one or two property documents are denied secure study abroad education loan in India. They have to apply for new documents and then start the whole process all over again. Similarly, a bank-appointed civil engineer makes a thorough study of the property and estimates its final market value.

Banks consider this cost while computing the final education loan amount. During the appraisal process, if engineers discover any violations of the bank's policies regarding real estate, borrowers are asked to rectify the problem and apply again.

Location: Mysuru, Karnataka, India

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