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

Comments

Post a Comment

Popular posts from this blog

Can I study in abroad without IELTS?

Image
  Can I study in abroad without IELTS? What comes to your mind  mind when you think of going Study in Abroad ? Looks like...yes you're right! This is the language proficiency test score. When you think of studying in a foreign institution, the first thing you think of is to sit and pass exams like IELTS and TOEFL. It can be any other test that measures an international student's ability to read, write and speak English. Moreover, if you are not able to clear the exam in the first attempt, it not only adds to further expenses but will also waste your time. Also, securing enough marks in these exams can prove to be a challenge for non-native English speakers. Although, language proficiency tests scores are considered as the biggest criterion for selection in premium universities, there are institutes which give admission without considering language proficiency test scores.   There are good universities in the UK and Europe that give admission on the basis ...
Read more

Challenges & Solutions of Studying Abroad

Image
  Challenges  &  Solutions  of Studying Abroad Many people think that going abroad will be as cool as any other type of travel: enjoy, eat and have fun. But studying abroad is not a holiday. This is real life. The cost of dining at restaurants will eventually add up, prolong your sleep during late-night classes and the overall pace can make you run into ruins. Even if you do well, you will find that studying abroad has its ups and downs, which affect you day by day - sometimes intensifying. The Language Barrier The main problem abroad is the language barrier. Living in a country where no one speaks your language can be very different. difficulty in communication is a fact of living abroad and making sense of Abroad lifestyles. This means that many students studying abroad can feel deserted. You can let this put pressure on you or you can see it as a learning opportunity. Cultural Differences In addition to the ideological barrier, there are also be Cu...
Read more

5 Ways to Gain Work Experience While Studying Abroad

Image
  5 Ways to Gain Work Experience While Studying Abroad Taking the time to gain work experience while studying abroad is as important as going to classes or going out with friends!   With the many options listed below, salary can be beneficial in covering a portion of your expenses, so why not take advantage of these opportunities to improve your resume and earn some extra money?   Adding a part-time job to your resume will make it more attractive to employers because they'll realize you have the confidence to learn and adapt.   1.       Part Time A part-time job is a great way to work abroad, improve your soft skills, move into the working world and of course cover some of your living expenses. 2.      Internship & Co-op Another way to gain work experience while studying abroad is through internships or collaborations. They are a form of learning outside the classroom, where you are employed while you...
Read more