Acquiring a quality education from a reputable institution is a must to secure one’s career. For many students it is equivalent to graduating from a foreign university situated overseas. With the cost of education rising every year, it is quite difficult for both students and their parents to manage the expenses from their savings as the cost of education is constantly on a rise.
According to a recent research, the cost of education is increasing with 10% every year and it is going to rise in the coming days. Although the cost of education differs from country to country, at present, an average cost of a bachelors’ and masters degree from an international institution goes around 60-70 Lakhs and 35-45 Lakhs, respectively.
To pay the whopping cost for this international degree, aspirants look for the ways to finance their higher education. One of the most common ways is of course by availing an overseas education loan from a financial institution. There are four types of financial lenders viz nationalized banks, private banks, NBFCs and international lenders that offer an education loan to study in a foreign university.
Every year, lakhs of international students apply for an overseas education loan but only a handful of them manage to receive funds from their lender institutions. A lot of students are not even aware of the reasons behind the rejection of their loan application. But not to worry as in this article, we are aiming to provide you guidelines that should be considered before approaching any of the financial institution for your education loan. So, let’s dive straight into the topic.
Here we have mentioned some of the common rejection clauses that should be kept in mind while submitting an overseas education loan application:
|Criterias||Unsecured Loan||Secured Loan|
|If parents’ income is less than 5,00,000/-||No Loan||Will get loan|
|If parents are getting rental income||No Loan*||Will get loan|
|If parents are agriculturist||No Loan||Will get loan|
|If parents are pensioner||No Loan||Will get loan|
|If parents do not file ITR||No Loan||Will get loan|
|If parents are having IT return but no business proof||No Loan||Will get loan|
|If only the student is earning & filing the IT return||No Loan||Will get loan|
|If parent is having a rural/gram panchayat property (i.e., Agriculture land, Farmhouse, Village house)||No Loan|
|If property with minor rights||No Loan|
|If parent is having an urban property (i.e., House, Flat, Open Plot, Blocks, Shop)||Will get Loan|
|If property title deed documents are laminated||No Loan|
|If property documents are not in the name of present owner||No Loan|
|If property is facing any dispute, court of law or is already mortgaged against some other loan||No Loan|