Education Loan For PhD

Pursuing a PhD is an excellent investment in your future, but it can also be a significant financial burden. The cost of tuition, fees, books, and living expenses can add up quickly, making it difficult for many students to afford. Fortunately, there are several options for financing a PhD, including education loans. 

An education loan for a PhD can help ease the financial burden of pursuing an advanced degree. In this article, you can learn more about the education loan product for PhD both in India and abroad.  

Education loans are a popular way for students in India to finance their higher education, including PhD programs. These loans can be obtained either with or without collateral, depending on the financial situation of the student and the terms of the lender.   

The Eligibility Criteria For Education Loan For PhD In India

• Indian citizen
• Admissions to a full-time PhD program in a recognized university or institution in India
• Age limit: 18 to 35 years
• Minimum qualification: Graduation degree

A loan without collateral is one where the borrower does not have to provide any security or assets such as house,flat,non-agricultural land,FD’s, LIC policies(Insurance policies), and government bonds as a guarantee for the loan. But instead a co-applicant is required with the following requirements

• The co-applicant must be a close family member of the student, such as a parent or spouse.    
• The co-applicant must have a good credit history and a stable income.
• The co-applicant must be willing to take responsibility for repaying the loan in the event that the student is unable to do so.
• The co-applicant must provide their personal and financial information, including proof of income, to the lender.
• The co-applicant may also be required to provide collateral, such as property or investments, to secure the loan.
• It's important to note that the co-applicant will be just as responsible as the student for repaying the loan. So, the co-applicant should carefully consider the loan terms and the student's ability to repay the loan before agreeing to co-sign. 

A loan with collateral is one where the borrower provides a security or asset such as a house, flat, non-agricultural land, FDs, LIC policies(Insurance policies), and government bonds as a guarantee for the loan.

Collateral requirement - 

• Immovable property: Flat, Non-agricultural land, House  
• Liquid securities: Fixed deposit, Government bonds, LIC policy

Value of collateral - 

• The minimum value for liquid security should be 1.1 times the requested loan amount.
• Immovable property should have a minimum value of 1.25 times the requested loan amount. 

Obtaining a PhD in a foreign country can provide Indian students with valuable experiences, however, it also carries a heavy financial weight. To help ease this burden, many students turn to education loans for a PhD abroad. 

Eligibility Criteria for Education Loan Abroad in PhD: 

To be eligible for an education loan for a PhD abroad, Indian students must meet certain criteria. These include

• Being an Indian citizen
• Having a good credit history      
• Meeting the minimum age requirement for the loan
• Having a confirmed admission to a recognized university abroad
• Having a good academic record
• Having a stable income or a source of income to repay the loan

Education loans for a PhD abroad without collateral are unsecured loans, meaning that the student does not have to provide any form of collateral as security for the loan. The interest rate on an unsecured loan is usually higher than that of a secured loan.But instead a co-applicant is required with the following requirements. 

• The co-applicant must be a close family member of the student, such as a parent or spouse.
• The co-applicant must have a good credit history and a stable income.
• The co-applicant must be willing to take responsibility for repaying the loan in the event that the student is unable to do so.
• The co-applicant must provide their personal and financial information, including proof of income, to the lender.
• The co-applicant may also be required to provide collateral, such as property or investments, to secure the loan.
• It's important to note that the co-applicant will be just as responsible as the student for repaying the loan. So, the co-applicant should carefully consider the loan terms and the student's ability to repay the loan before agreeing to co-sign.

Education loans for a PhD abroad with collateral are secured loans, meaning that the student must provide some form of collateral as security for the loan. The collateral can be in the form of property, investments, or other assets. The advantage of a secured loan is that the interest rate is usually lower than that of an unsecured loan.

• Collateral requirement -
  • Immovable property: Flat, Non-agricultural land, House 
  • Liquid securities: Fixed deposit, Government bonds, LIC policy(Insurance policies)
• Value of collateral -
  • The minimum value for liquid security should be 1.1 times the requested loan amount.
  • Immovable property should have a minimum value of 1.25 times the requested loan amount.

The following documents are typically needed to apply for an unsecured education loan:

Application form

A basic application form that requires two photographs, along with your signature as directed by the financial officer assigned to you.

Student Documents 

• Identification proof - Aadhar card, PAN card, and Passport of the applicant
• Admission letter from the university
• Utility bills - Electricity bill, House tax
• Academic documents - 10th, 12th, Degree/Diploma
• Competitive exams - IELTS, TOFEL GRE, GMAT scorecards
• Gap certificate in case there’s any gap between your degree
• Experience letter, if there’s any work experience 

Co-applicant Documents

In addition to the identification documents, financial documents are also required to be submitted.

If Salaried 

• Latest 3 months salary slips
• 6 months bank statement
• Company ID
• Latest 2 years form 16
• Last 2 years ITRs 

If Self Employed 

• Last 3 years ITRs
• 6 months bank statement
• Balance sheet, Profit and loss account for the last 3 years
• Proof of Business address

Other Documents 

• A letter indicating that the co-applicant will be responsible for any outstanding expenses not covered by the loan (the financial officer assigned to you will provide you with the format for the letter).
• A validated bank statement that shows the activity of both the co-applicant and the student.
• If a loan is requested, an invoice must be submitted that specifies the requested amount, including any associated travel or laptop expenses.
• Proof of payment in the form of receipts for any previous transactions that were made.
• Statements from previous years that show any outstanding loans that have yet to be paid off.
• A letter that explains any discrepancies and a sample on stamp paper with a cost of Rs. 100.
• A letter that explains the lack of co-applicants, if applicable, and a tax return that has been filed.

Documents Required for Education Loan With Collateral

All of the documentation required for an unsecured loan is also needed for a secured loan. For a secured loan, a basic income certificate is sufficient and ITRs are not necessary. Additionally, for a secured loan, you will need to provide additional documents to serve as proof of the collateral that you are offering.

Additional Documents For Secured Loans

• A property title deed will be needed.
• A registered sale agreement, gift deed, or will may also be required.
• You will need to provide the original receipt for the agreement.
• If applicable, an allotment letter from a government authority such as MHADA, CIDCO, HUDA, DDA, JDA, or GIDC will also be required.
• To establish ownership, a 30-year link document or a chain of sale deeds may be required. If the property has been owned for more than 30 years, a previous sale deed may be sufficient to prove ownership.
• Recent property tax and electricity bills with the same address as the property in question will also be required.
• A copy of a building plan or plot layout that has been approved by the municipality may also be needed. 
  Note: Based on the location of the collateral the required documents differ, a callback request or completing the common application form available on the WeMakeScholars website will inform you of any additional documents that may be required according to your location of the collateral.

WeMakeScholars is an initiative supported by the Indian government, aimed at helping students secure funding for higher education both in India and abroad. We are a part of the Digital India Campaign, which seeks to ensure that students with limited financial resources can access necessary education loans. By guiding students through a comprehensive process of obtaining loans, We connect them with suitable financial institutions, ensuring a smooth and efficient application experience.

Step 1: To get started with WeMakeScholars, you can reach out to us by either requesting a callback or by filling out a common application form.

Step 2: To secure an education loan, it is important to provide all the required information to the assigned financial officer. After the financial officer has evaluated your loan information, they will recommend and connect you with suitable lenders that meet your financial requirements.

Step 3: After your financial officer has connected you with several appropriate lenders, you can review and compare their offers. After evaluating the different options, you can choose the lender that you find most suitable and inform your financial officer of your selection.

Step 4: Once you have chosen a lender, your financial officer will give you a list of documents that are specific to your profile. It is crucial that you gather and submit all the necessary documents in the WeMakeScholars portal or the bank in a timely manner. This will facilitate a smooth and speedy loan application process.

Step 5: With the required documents submitted and the loan application process underway, it's time for you to relax and let your financial officer handle the rest. You may receive follow-up calls from the lender or your financial officer during the loan process,You can be assured that your financial officer will handle the loan process efficiently and keep you informed on the progress.

Step 6: The lender typically takes around 7 working days to approve and sanction the loan. Once your loan is approved, you will receive a loan sanction letter which will include all the details of the loan such as the loan amount, interest rate, repayment period and other terms and conditions.

Rate of Interest Negotiation:

WeMakeScholars can assist students in negotiating a lower interest rate for unsecured loans, potentially decreasing it by 2% from the lender's initial offer. This can help students save money on loans.

Experience in Complex Cases:

WeMakeScholars has extensive experience in handling complicated cases involving multiple parties, which can sometimes make the loan application process more difficult. By using WeMakeScholars, students can be confident that their loan application will be handled by experts who have the expertise and experience to overcome any challenges and secure a loan for them. 

No Service Charge:

WeMakeScholars provides its services at no cost to the students, and the support will be continued until the loan is fully repaid.

Transparency:

WeMakeScholars will keep you informed about your loan application status and ensure you understand the process without any confusion. They are always willing to answer any questions you may have. They aim to make the loan application process as straightforward and effortless as possible.

Cashback Provided:

WeMakeScholars offers an incentive for students who apply for a study abroad loan through their platform, which includes a cashback reward that is added to the initial disbursement of the loan. The maximum cashback amount that can be received is INR 3000.

It's also worth exploring scholarships and grants as a means of funding your education, as these forms of financial aid do not need to be repaid. Many universities offer scholarships and grants to PhD students, and there are also various organizations and foundations that provide funding for graduate students in specific fields of study. And here are some of the scholarships to study for a PhD. 
Aga Khan Foundation’s International Scholarship Programme (ISP)

Fulbright Foreign Student Program In USA

University of Dundee Alumni Scholarship

University of Otago Noni Wright Scholarship

ANU Research School of Biology, Laureate Fellowship PhD Scholarship in Plant Molecular Biology

Sharif University of Technology Scholarships

Queen Mary Alumni Loyalty Award

Ambedkar Overseas Vidya Nidhi Scholarships for SC students

Birkbeck University of London MPhil/PhD Scholarships