Abroad Higher Studies Education Loan: Common FAQs

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Abroad higher studies education loanGetting an abroad higher studies education loan is not an easy feat in India. A lot of applicants find it difficult to get an abroad higher studies education loan, especially from government banks. As they proceed ahead in the process of getting an abroad higher studies education loan, students often wonder about certain steps in the process. When such students approach their respective loan officers with their doubts, they are often turned away. This article lists certain commonly asked questions by such students in the process of getting an education loan for abroad studies. 

The education loan issues mentioned in this article are categorised into different sections based on their nature.

Abroad Higher Studies Education Loan: Collateral Based FAQs

  1. What is the basic list of property documents to be submitted by candidates for an abroad higher studies education loan?

More often than not, a lot of candidates face a lot of issues when they fail to submit all the property-related documents mentioned in the checklist provided to them at the time of applying. In order to avoid being stuck at this stage of the abroad education loan process, the following documents have to be submitted by students.

  1. Property Title Deed 
  2. Registered Sale Agreement / Gift Deed / Will
  3. Original registration receipt for the above agreement
  4. Allotment Letter By Municipal Corporation / Authorized Govt. Authority Like MHADA, CIDCO,  HUDA, DDA, JDA, GIDC etc. (if applicable)
  5. 30 years link document or Previous chain of sale deed establishing title or EC is required. It is 30 years track record of who sold the property to whom in last 30 yrs. Deviation possible if 20-25 yrs record is available. If you own the property for more than 30 years, then the sale deed of previous is enough
  6. The latest property tax bill and Latest electricity bill bearing the same address
  7. Copy of municipality approved building plan or plot layout.

Apart from the documents mentioned in the above list, candidates may be required to submit certain other documents related to their property. The documents required for properties belonging to different locations in India are different. These documents are to be submitted by candidates along with the ones mentioned in the above list.

  1. What kind of immovable properties cannot be pledged as collateral security against an education loan for abroad? Which ones are mostly preferred by banks?
  1. Agricultural lands are NOT acceptable, even if someone has built a house on it, it is still not acceptable. If that area is converted to a residential one, then a “conversion document” will be required to prove the same.
  2. Gram panchayat properties are NOT usually acceptable. The property has to be under Municipal Corporation. Gram Panchayat property is not accepted in a lot of government banks. But what we have observed is, it’s acceptable in Kerala always, and sometimes in other regions. 
  1. Cantonment Area property is NOT acceptable.

Most students run into a lot of trouble in the last minute because they are unaware of the kind of immovable properties that can be pledged as collateral for an abroad studies education loan. If you are facing any property related abroad higher studies, get in touch with the financial team of WeMakeScholars at the earliest.

The following kinds of immovable properties are mostly preferred by government banks as collateral.

  1. Urban properties over rural properties
  2. Residential properties over commercial properties. 
  3. Built-up properties over empty lands. 

If you are stuck at any point in your education loan process due to an issue with the documentation of the property being pledged as collateral, get in touch with the financial team of WeMakeScholars.

  1. I am a resident of Nagpur, but the property which I plan on placing as collateral is in Mumbai. Will I get my education loan from the local government bank branch in Mumbai or Nagpur? What is the process to avail of one?

Banks call this scenario a multi-city case. Candidates can definitely avail of an education loan for overseas studies in this case. However, multi-city cases can prove to be a lot harder than expected. Most local branches of government banks are not well-equipped to solve issues related to multi-city cases. Hence, in order to seek the right solution to your multi-city case, get in touch with the financial team of WeMakeScholars.

abroad education loan

Abroad Higher Studies Education Loan: CIBIL Score Related Issues

  1. What is a CIBIL Score? How is it calculated?

In the abroad higher studies education loan process, a candidate’s credit history is checked by banks with the help of their CIBIL score. Most credit bureaus calculate a loan applicant’s CIBIL score by considering their credit and repayment histories. If the company finds faults in the same, your CIBIL score can go down. A candidate’s CIBIL score helps banks estimate the reliability of their borrowers. This system helps banks bifurcate potential candidates who are not eligible to borrow loans of any kind.

Most government banks consider a candidate’s CIBIL score into serious consideration before they agree to process an abroad higher studies education loan. If you are facing any issue in the abroad higher studies education loan related to your CIBIL score, you can get in touch with the financial team of WeMakeScholars to seek our team’s assistance for the same.

  1. Under what circumstances will my CIBIL score be affected?

Your CIBIL score is calculated on the basis of your previous loan records. If you defaulted on the repayment of any loan in the past, it is most likely possible that the lending bank will not agree to lend you an education loan. For example, if you had taken a home loan in the past and had failed to pay the EMI due to any reason, your CIBIL score can go down

To know more about this particular education loan issue, get in touch with the financial team of WeMakeScholars.

  1. What is the benchmark CIBIL score that a candidate needs to maintain in order to be eligible for an abroad higher studies education loan?

In order to qualify for an education loan for overseas studies, you need to have a CIBIL score of 650 and above. Most banks are generally strict about lending loans to candidates with low CIBIL scores because, in the past, many banks have incurred heavy losses due to many education loans going bad. 

  1. If your CIBIL score is low because you failed to pay your credit card dues, this issue can be resolved within no time and your CIBIL score will be back to normal.
  2. If you have had remarks such as ‘Loan write off’ or ‘loan settled’ written on you or your co-applicant’s income profile, or if the cheques issued by you or your co-applicant have bounced in the past, it is difficult for you to get an abroad education loan from the respective lender.

Getting in touch with the WeMakeScholars financial team will help 

  1. Will a low CIBIL score hamper my chances of getting an abroad studies education loan?

Yes. There are chances that your low CIBIL score may affect your chances of getting an education loan. In order to secure an abroad education loan from government banks in India, it is necessary that you meet the CIBIL score benchmark set by the bank. Again, for any kind of issues related to your CIBIL score, you may get in touch with the financial team of WeMakeScholars.

 

Common Issues Related to Abroad Studies Higher Education Loan Disbursement

  1. What is a pre-visa disbursement?

If candidates need to disburse any component of their abroad studies education loan to fulfil certain financial pre-conditions laid down by their respective embassy in order to become eligible for a student visa, such a disbursement is called a pre-visa disbursement in the banks’ terms. For example, students who wish to study in Canada are required to deposit their entire one year’s living expenses into a GIC account to be able to qualify for a Canadian student visa. They can only be deemed eligible if they fulfil this condition before their visa process. In this scenario, your lending bank, in this case, the lending government bank is supposed to approve of your pre-visa disbursement.

  1. How do I avail of a pre-visa disbursement? Will my loan officer refuse to approve of my Abroad Higher Studies Education loan?

According to the education loan policies laid down by the bank, your loan officer is supposed to approve of this disbursement provided that it is a requirement for your student visa process. But in reality, a lot of students face an issue regarding the same when they directly approach their loan officer. If you are stuck in a similar situation, getting in touch with the WeMakeScholars team will help you progress faster in the education loan process.

  1. How do government banks disburse abroad education loans? What is the procedure followed by them for the same?

On the successful sanction of your abroad education loan, your assigned bank branch will disburse different components of your loan amount according to your university’s payment requirements. The general process is that the bank will disburse the tuition fee component on a pro rata basis directly to your university’s account and the living expenses will be disbursed into a forex card which can be used just like a debit card by candidates, on reaching their destination of study.

If your sanctioned loan is stuck at any phase of the disbursement or you have been facing problems of a similar kind as mentioned above, get in touch with the WeMakeScholars team at the earliest opportunity.

I am facing an issue related to the disbursement of my living expenses, how can this be resolved?

If you are facing an abroad education loan issue with respect to your disbursement, you may fill this abroad higher studies form and our team will provide you with the required assistance. You need to mention the exact problem being faced by you in this regard and our team will respond within a short period to resolve the same. 

abroad education loan

Income-related FAQ’s/Issues

I plan to name my father as my co-applicant. However, he is going to retire in 2 years. Will I face any issues regarding the same?

No, government banks do not have any restrictions on the financial profile of co-applicants. You can still name your father as a co-applicant.  If your co-applicant happens to be a government servant who is going to retire with a pension, then you should not ideally face a problem. However, if you are facing a problem with respect to your co-applicant’s financial profile regardless of him/her retiring with a pension, you may seek the financial team’s assistance by requesting a callback.

Candidates can name their parents, siblings, spouses, parents-in-law or an official guardian, as their co-applicant for a an abroad education loan in any of the government banks. The only requirement is that your co-applicant should have a fixed income source.

If you are facing any abroad higher studies at your local branch then getting in touch with the WeMakeScholars team will help you in the longer run.

What are the mandatory financial documents my co-applicant needs to provide for an abroad education loan?

Documents to be submitted by salaried co-applicants:

  1. Latest Salary slips (of the last 3 months)
  2. Form 16 of the last 2 yrs.
  3. Employers ID card
  4. ITR of last 2 yrs

Documents to be submitted by self-employed co-applicants:

  1. ITR of last 3 yrs
  2. Last 3 yrs Balance sheet and Profit & Loss account (only if self-employed)
  3. Proof of Business address

If you are facing any issues related to the ITR filing of your co-applicant’s finances, you may fill the above form which is meant for filing abroad higher studies with our team.

My co-applicant has not filed his ITR. Will this affect my chances of getting an education loan?

Ideally, the co-applicant’s ITR of the past two years is a compulsory document required by government banks, as well as NBFCs for the purpose of processing your abroad education loan. Hence, there is a high chance that your assigned loan officer may disagree to process your loan application. You may fill the above form, which has been put together for such abroad higher studies and seek help from the online team if you come across this hurdle. If you resort to our help for this particular abroad education loan issue, you are less likely to have a problem in the abroad education loan process.

My father does not have any income source. Whom can I name as my financial co-applicant?

Most government banks accept parents, siblings, parents-in-law, spouses, etc. as financial co-applicants for an abroad education loan in such a scenario. You can get in touch with the financial team of WeMakeScholars for details regarding the co-applicant eligibility.

abroad education loan

Abroad Higher Studies Education Loan: Bank Branch related issues

I had applied for an abroad education loan to fund my studies in the USA. My manager is refusing to disburse the loan amount without an I-20 form. What should I do?

You may refer to a similar question in the section which explains the various aspects of a typical abroad higher studies education loan. According to the education loan policies of various government banks, branch officials are supposed to disburse the I-20 amount, if it is a precondition for the US student visa. However, if you are facing any issues with regards to this point, you may definitely reach out to the financial team of WeMakeScholars at the earliest.

I need an abroad higher studies education loan to fund my higher studies but I do not reside within India. Is it still possible for me to avail of an education loan?

Yes. If you are an Indian citizen residing abroad (NRI), you can definitely get an overseas education loan. However, there are certain conditions under which this can be made possible.

  1. The property which is going to be pledged as collateral should be located in India.
  2. The co-applicant/guarantor should be a citizen of and residing within India.

To know more about the various conditions under which you can apply for an education loan for abroad studies, get in touch with the financial team of WeMakeScholars.

I have not yet completed my Bachelor’s degree course and I require an abroad education loan to fund my Master’s course. Will the bank approve my education loan without a Degree certificate?

If candidates apply for an abroad higher studies education loan just after writing their final exams, they can apply for an education loan without a degree certificate. However, candidates need to ensure that they have one before their education loan is sanctioned. Most government banks require candidates to provide mark sheets of their last qualifying exam in order to receive the education loan disbursement in time. If you are stuck in your abroad higher studies education loan process with respect to this problem, you may avail the WeMakeScholars team’s assistance for the same purpose. The team will guide you in the right direction regarding the same.

Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it’s at free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, China, France among others

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Bibliophile, wanderer, major foodie. I write too :)

 

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