How to Fund Your Education Abroad Using a Personal Loan?

Education Loan is one of the most popular types of personal loans in India. Many times parents sign up for a personal loan for higher education and then kids take over. Such loans can be used to pay tuition fees or education abroad for children or by professionals who wish to upgrade their educational qualifications. You can avail of an Education finance loan from SMFG India Credit through a personal loan up to INR 10 Lakhs*, without any collateral. 

What are the Features of a Personal Loan to Finance Abroad Education?

1. The Main Applicant is the Student
   Education is pursued by students and hence the loan is taken on their name. This is one of the ways to reiterate that they are responsible for repaying the loan. Parents, spouses, or siblings are co-applicants and are also responsible for paying back the loan.
2. Importance of the Course and University
   It is important to gauge the job prospects after completion of education and hence it is imperative to know the course and university. Lending institutions who provide education loans will only approve your application if it is a top-rated university and a full-time course depending on their policy.           
3. Specialized Courses
   Such loans can be taken for undergraduate courses, postgraduate courses, diploma courses, PhDs, etc. They can also be taken for specialized IT courses, teaching courses, etc.  

Must Read: 5 Steps to Get a Personal Loan for Online Courses

Why do we Need to Finance Education?

The cost of education in India and abroad is increasing every year. The cost of studying abroad went up by 44% from 2015 to 2018. It thus becomes necessary for parents to take an education loan so that they do not lose their savings towards paying for their children’s education. Financial institutions like SMFG India Credit provide personal loans to help you achieve educational goals. While education loans are available easily, there are some compelling reasons why you should consider a personal loan to finance higher education. Education loans, at times, become available only if you get admission to a listed list of institutes. And if your university is not on such a list, then you may not get finance for education abroad. The other factor is that the loan amount provided might not cover all the other expenses. This is where finance for abroad education through a personal loan can help you.

Benefits of SMFG India Credit Personal Loan for Higher Education

1. Ease of Operation: It is very easy to apply for a personal loan for higher education with SMFG India Credit. You can apply for a personal loan online. Or you can visit the nearest SMFG India Credit branch to complete the process offline.
2. Local or Abroad: You can apply for a personal loan for education finance in India or overseas.
3. Broad usage: You can use SMFG India Credit’s personal loan other expenses like hostel expenses, travel expenses, books, computers, etc. 
4. Flexible Repayment Tenure: You can enjoy the tenure of repayment between 12 - 60 months.
5. Personal Loan Calculator: NBFCs like SMFG India Credit provide personal loan EMI calculator so that borrowers can get complete clarity on your monthly outflow.
6. Easy Application Process: If you want to apply for this loan online, you need to follow a simple process of clicking on the ‘Apply Now’ button. Then you need to fill-up the form provided with all the requisite details and specify the amount and tenure. You can upload the documents as requested and then submit them. On verification, your loan will be disbursed. If you do not want to upload the documents, then once you fill-up the form, SMFG India Credit’s representative will get in touch with you. The representative will collect the requisite documents. Once the documents are verified, the personal loan amount would be credited to your account within 24 hours. The next option is offline, wherein you can visit any of SMFG India Credit’s branches and the representatives will guide you through the application process.

Must Read: How to Apply for a Personal Loan Online - Step by Step Process

Documents Required for Personal Loan for Higher Education

When you apply for SMFG India Credit’s loan, you will need to arrange personal loan documents. You need to have the following documents ready:

1. Filled up and signed loan application form
2. Passport-size photographs
3. Form 16 and IT returns
4. PAN card copy
5. Proof of identity (Driving license, Passport, Aadhar card)
6. Address proof (Driving license, Passport, Electricity bill, Telephone bill)
7. Bank statements for the last 12 months
8. Salaried employees need letter mentioning the date of joining the organization, bank statements for the last 12 months reflecting the salary credit.
9. Self-employed individuals need to submit IT returns for the last 2 financial years, Audited balance sheet for the last 2 years, bank statements for the last 6 months, latest turnover document.

If you are a student and choose to use this method of financing, we advise you to apply for the same through a parent / family member who has a stable source of income. This is because one of the main eligibility criteria for a personal loan is that the applicant should have a stable income source in order to be able to repay EMIs, whereas education loans are given solely to students, who can repay the loan after completion of the course.

Conclusion

The dynamics for financing your education abroad have changed for the better. It has become easy for us to fulfil this dream by applying for efficient loans like these.

*Terms and conditions apply