Is the rising cost of international education making you rethink your study-abroad dream? With IMTP Study Abroad Consultants, you can easily apply for educational loan for study abroad and cover not just tuition fees but also accommodation, travel, and living expenses. An education loan ensures financial flexibility so you can focus on your learning journey without financial stress.
How IMTP supports students in the loan process:
- IMTP guides students in selecting suitable education loan options from trusted banks and financial institutions.
- They provide detailed information on loan eligibility, required documents, and application procedures.
- Dedicated counselors assist in preparing and organizing financial documents to avoid delays.
- IMTP offers guidance on selecting the right loan amount based on tuition fees, living expenses, and other costs.
- They help students with filling out loan application forms correctly and submitting them on time.
- Support is extended in getting approval letters and sanction letters from banks.
- IMTP coordinates with banks to fast-track the process for quicker approvals.
- They advise on repayment terms, interest rates, and moratorium periods to make informed decisions.
- Assistance is provided in addressing queries from banks during the verification process.
- IMTP ensures students have financial clarity before they proceed with their overseas education plans.
Why Take an Education Loan for Overseas Studies?
Studying abroad is more expensive than studying in India. Tuition fees, cost of living, and other expenses can quickly add up. An educational loan helps bridge this financial gap while offering multiple advantages:
- Access to top universities worldwide – Institutions in the USA, UK, Canada, Australia, and Ireland offer world-class education, which becomes more accessible through financial support.
- High return on investment (ROI) – Graduating from prestigious global universities opens doors to high-paying career opportunities worldwide.
- Financial flexibility – The burden can be lessened by spreading out the cost of schooling across several years rather than depleting family funds.
Types of Education Loans for Study Abroad
There are different categories of study loans available, depending on your eligibility and requirements:
- Secured loans – backed by resources like real estate or fixed deposits. These loans typically have lower interest rates.
- Unsecured loans – They have higher interest rates and more stringent eligibility requirements, but there is no collateral needed.
- Loans from banks, NBFCs, and specialized lenders – Flexible options with varying documentation and repayment terms, suitable for students with diverse profiles.
Loan Amounts Typically Offered
Loan amounts can range from ₹30 lakhs to ₹3 crores, depending on the country, university, and course chosen. Factors such as tuition fees, cost of living, and the applicant’s financial profile also influence the sanctioned amount.
Eligibility Criteria for International Education Loans
Applicants generally need to meet the following requirements:
- Must be an Indian citizen.
- Confirmed admission to a recognized overseas university.
- Co-applicant with a stable income and strong credit history.
- Age between 16–35 years.
- Strong academic record (minimum 60% aggregate or as per lender guidelines).
Documents Required
Lenders usually ask for:
- Loan application form.
- Valid passport and admission letter.
- Academic transcripts and entrance exam scores (GRE, GMAT, IELTS, etc.).
- Recent passport-sized photos.
- Co-applicant documents including proof of income, ID proof, bank statements, and collateral documents (for secured loans).
Key Factors Before Choosing a Lender
- Interest rates (fixed or floating).
- Processing time and charges – vital in the event of a tight deadline.
- Repayment terms – look for flexible moratorium and tenure options.
- Customer support and reputation – always choose a reliable financial institution.
Loan Repayment Process
Repayment usually starts after the moratorium period, which is equivalent to the length of the course plus six to twelve months. Some banks allow simple interest payments during this time. Options include:
- EMI (auto-debit from your account).
- Step-up EMI plans.
- Part-payment or pre-payment options.
Timely repayment ensures a healthy credit score and avoids legal or financial complications.
Tax Benefits on Education Loans
Interest paid on student loans may be deducted for up to eight years under Section 80E of the Income Tax Act, with no maximum interest amount.
Mistakes to Avoid While Applying
- Rushing into a loan without comparing lenders.
- Applying at the last minute and missing university deadlines.
- Misunderstanding loan terms like moratorium and floating interest.
- Providing inaccurate details in the loan application.
- Failing to plan for repayment after graduation.