Are you looking forward to pursuing a short-term program that will make you career-ready? Then, a Diploma is an ideal choice for you. It is a short-term study course that is fast-paced, smaller in size, and equips students with the necessary skills and knowledge to become job-ready in a particular subject or field.
There are ample universities and colleges across the globe that offer diploma programs in a wide range of subjects. However, the names of the diploma programs vary in different countries. They are called Graduate Diploma, Post-Graduate Diploma or Advanced Diploma, etc. Students can enroll for a UG Diploma after the completion of their higher secondary school examinations whereas they can enroll for a PG Diploma or Graduate Diploma course after their graduation.
Be it a diploma or a degree program, studying abroad comes with a certain cost attached to it. So, to cover the expenses, aspirants might need an education loan for higher studies abroad for a diploma program.
In India and overseas, there are financial institutions like government banks, private banks, NBFCs, and international lenders that offer an overseas education loan to fund a diploma program.
In this blog, we will talk about the types of overseas education loan options for diploma programs. So, let’s get straight into the topic!
Types of Education Loans for Diploma Courses Abroad
The financial institutions offer two types of education loans i.e., Secured Loans and Unsecured Loans. Read on to understand these types briefly.
• Secured Education Loan
A secured education loan is also termed a collateral education loan. In this type of loan, the borrower is required to pledge a tangible or intangible security against the loan amount. Some of the examples of tangible property include immovable property, FDs, insurance policies, etc. Some of the advantages of a secured education loan include a lower rate of interest, longer repayment period, no repayment during the study period with a high rate of loan approval.
• Unsecured Education Loan
An unsecured overseas education loan is also termed an education loan without collateral. In this type of education loan, the borrower is not required to pledge any kind of security against the loan amount. The repayment period of this type of loan is usually shorter while the interest rates are much higher in an unsecured education loan. An unsecured education loan is not offered for an undergraduate diploma whereas, in case of Graduate Diploma Program and PG Diploma program, one can get an unsecured education loan. However, it depends upon the income of the co-applicant.
Choose the Right Financial Institution
When it comes to choosing between a secured and an unsecured education loan, it is recommended to opt for a secured overseas education loan from the government banks as the interest rate is much lower compared to that of an unsecured education loan. Secondly, if the education loan has been availed via government banks, the applicant becomes eligible for the income tax benefits that can be claimed on the principal amount. The lender institutions also offer a moratorium period allowing students enough time to repay the education loan amount. An education loan covers the tuition fees, library fees, accommodation charges, travel expenses, equipment, books, laptop charges etc.
Steps to Follow to Apply for an Education Loan
Step 1: Check your loan eligibility
Step 2: Choose a lender institution to apply for an education loan via E’lan Loans
Step 3: Get the document checklist and fill in the education loan form
Step 4: Submit the duly filled loan form along with the required documents
Step 5: In case of a secured education loan, get the property & other legal papers evaluated
Step 6: Get your loan sanction letter once the lender approves the education loan
How can E’LAN Loans assist the students?
At ELAN Loans, we have a team of experts who assist students in an overseas education loan application process.
Right from shortlisting of the suitable financial institution, submitting the loan application, and getting the education loan disbursed in the bank account of the respective university, we assist students during the entire education loan process.
So, book a free consultation with us for quick and hassle-free services and take a leap towards your future.