TARGET USA

Subsidiary of US Educational
Consultancy Service LLC USA

15 Years of

Excellence

Apply Now!

Subsidiary of US Educational
Consultancy Service LLC USA

Apply Now!

Eligibility requirements for education loans

It is crucial to check the eligibility criteria before you apply for an education loan. The eligibility requirements vary for each type of education loan.

 

However, the following requirements need to be fulfilled to apply for any education loan:

  • You must be a citizen of India or an NRI
  • You must have secured or be awaiting admission to a university abroad
  • You shall not have any existing loan overdue
  • Documents you submit must be legally valid

Looking for guidance to apply for education loans?

We are committed to bringing ease and comfort to students by properly guiding them to search for the best education loan options. Our dedicated team of experts will analyze your profile and suggest the education loan options that may best fit you. And what’s more – all our services are of zero cost to you.

How to choose the best abroad education loan?

Taking an education loan is an important financial decision you make while being a student. Here are some checkpoints to ensure you get the best education loan:

  • Interest rates:

    It is best to go for an education loan that has the lowest interest rates for you. Low rates of interest will help you save money, and even a small difference in interest rates can cost a significant amount in loan repayment.

  • Interest difference in different countries:

    Usually, the rate of interest will be lower in INR rates compared to USD rates. When you see an education loan in the US currency offers lower interest than education loans in India, be mindful that the rates will be much higher when converted to the Indian currency.

  • Repayment period:

    You must choose an education loan that offers you a sufficient repayment tenure. You can either negotiate with the lender or choose a different loan option if you come across issues related to your repayment tenure.

  • Tax benefits:

    Education loans from Indian banks offer you tax benefits under Section 80 E. You can prioritize education loan options with tax benefits to save more money.

  • Other costs:

    There will be other charges, like Forex conversion, processing fee, Insurance cost, etc. Go through them and choose the loan option with the least possible charges.

Frequently Asked Questions

What is margin money in education loans?

Margin money refers to the amount that the student has to contribute to the total loan amount.

For example: if your loan has a 5% margin, you will get only 95% of the loan amount, and it’s your duty to add the remaining 5% to the loan.

Can I get a 100% loan to study abroad?

Yes. If approved, many lenders offer education loans with no margin money that cover 100% of your expenses. However, it is mandatory that you meet the eligibility requirements.

What is the maximum loan amount students can get from education loans?

From Indian lenders, students can get up to INR 1.5 Cr and from banks in the US, the maximum loan amount can be up to INR 1.8 Cr. If approved, the maximum loan amount depends on your co-borrower’s income (or collateral value), country and course of study, and similar other factors.

Who can be a co-borrower for an education loan?

In India, the co-borrower must be a close relative of the student, such as a parent, sibling, spouse, parent-in-law, etc. The co-borrower must be earning the minimum income specified by lenders without any other obligations, as well as other eligibility requirements to be approved However, for US banks, the co-borrower can be anyone who is a US citizen or a permanent resident in the country. Like in India, the co-borrower must meet the income criteria and other eligibility requirements to be approved.

Ready to achieve your study abroad dream?

Contact Target USA today!

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