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✓ Education Loan Disbursement
✓ List of Property Documents
Getting an abroad education loan for your overseas studies is not as straightforward as it may sound. There are just way too many things to consider before you finalize your lender.
To make an informed decision, you need to know everything, and to know everything you ask questions, maybe from your lender, ask people around you, or look online for answers, etc. And there are a few basic but common frequently ask questions that almost every student asks which we've compiled in this article for students like you.
You may find a few questions that seem very particular, but it answers the common questions through those scenarios. The education loan issues mentioned in this article are categorized into different sections based on theature of the questions mentioned here.
More often than not, a lot of students 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.
Documents required by different lenders may vary since different lenders do ask for a different sets of collateral documents. You may also be asked to bring in additional collateral papers for different states or locations.
There are 7 types of collateral securities that banks accept for education loans which are- House, land, FD, insurance policies, etc. But the ones that banks do not accept at any cost are given below-
Though all properties mentioned below are suitable, lenders prefer certain properties over others based on the property's future prospects.
What to do if the property is located elsewhere? Banks call this scenario a multi-city case. Students 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.
WeMakeScholars have handled multiple Multi-city cases and have successfully been able to get the loan sanctioned for students who had previously been denied by banks.
CIBIL basically refers to Credit Bureau of India Limited, an organization that keeps a track of all the financial transactions of individuals. These financial transactions include any loan taken by individuals, their credit card payment history, loan EMI payment schedules, etc. An individual’s CIBIL score helps banks and other financial institutions determine their ability to repay any loan for which they may have applied. Both government and private lenders always check a loan applicant’s CIBIL score before considering their education loan application.
The financial details of all individuals holding a PAN card or a savings account with any bank functioning in India are recorded by CIBIL from the moment their accounts are active. Based on your past credit history, CIBIL gives you a score ranging from 300 to 900. A score closer to 900 is considered to be a good score and vice versa.
There are mainly four factors to determine a CIBIL score
Repayment history - Your consistency of paying earlier EMIs, how regular you were with them, and so on.
A mix of loans - In the past, the type of loans you've taken (Secured or Unsecured)
Credit limit - Utilization of the credit limit of your credit card or any credit line.
Multiple loans at one time - Have you taken or applied for too many loans in a short span of time?
Yes, and not just only yours but also of your co-applicants. When you take an education loan, it immediately doesn't affect either of your CIBIL scores, it reduces or improves as your repayment period starts. Non-repayment or delay in paying EMIs of your education loans will result in the reduction of your credit score and vice versa.
Generally, while taking an education loan, the required CIBIL score is a minimum of 685. Government banks sometimes accept lesser CIBIL scores if it is low because of some not-so-serious reasons such as credit card-related issues, on the other hand, Private banks and NBFCs are less flexible on CIBIL issues.
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.
If students need to disburse any component of their abroad studies education loan to fulfill 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 fulfill this condition before their visa process. In this scenario, your lending bank is supposed to approve your pre-visa disbursement.
According to the education loan policies laid down by the bank, your loan officer is supposed to approve 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.
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.
It may depend on the lender from whom you've chosen to apply for a loan. Government banks do not have any restrictions on the age or financial profile of co-applicants, however, private lenders may not accept them as co-applicant.
Documents to be submitted by salaried co-applicants:
Documents to be submitted by self-employed co-applicants:
Ideally, the co-applicant ITR of the past two years is a compulsory document required by government banks, as well as private lenders 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 out 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.
All lenders accept parents, siblings, parents-in-law, spouses, etc. as financial co-applicants for an abroad education loan in such a scenario. Your lender will check your co-applicant's eligibility for the same.
You can request a call back from the WeMakeScholars team for your abroad education loan process, all your doubts will be cleared by your assigned financial officer.
Our team of Financial officers assists you with the entire education loan process until sanction, disbursement, and beyond. All the services offered by WeMakeScholars are free of cost as this initiative is supported by the IT Ministry, Govt. of India.