After seeing huge demand of study abroad, banks have come up with numerous options for funding education of these aspirants.
Education loan for abroad usually cover the following expenses:
- 1. Tuition fees
- 2. Charges for examination, library, laboratory and hostel
- 3. Cost of purchasing books, equipment, instruments and uniform
- 4. Travel expenses for study abroad
- 5. Caution money, refundable deposit, etc.
- 6. Study tours, exchange programs and project work
The criteria for applying for education loan are as follows:
- 1. A co-applicant is a must ( could be parents, a sibling or a spouse )
- 2. For loans between Rs 4 – 7.5 lacs a third party guarantor is required
- 3. For loan above 7.5 lacs rupees collateral needs to be provided.
- 4. Loan repayment commences 6 to 12 months after course completion
If a student goes abroad, lender recovers the remainder from co-applicant