The Overseas Education Loan mostly covers tuition fees, living and accommodation expenses, cost of books, cost of commuting etc.
The maximum loan amount for Overseas Education ranges from 20 lakhs to 1.5 crore.
Overseas Education Loan interest rates vary from 9% to 14% depending on the kind of financial institution. Rate of interest at Nationalised Banks is usually 1% to 2.5% lower than Private banks and NBFCs.
You can apply for education loan on receipt of offer letter from the University. However, if you are planning to take an education loan it would be better to enquire about the process and start the required documentation beforehand.
Education loan disbursement means actual release of funds. The disbursement is done after the loan has been sanctioned. Banks do give their share in many cases before the student receives the visa, whenever student is required to pay a part of tuition fee to the University for release of the final offer letter. Thereafter, once the student receives the visa, banks release the education loan in instalments semester wise.
Most educational loans are unsecured loans which are good options for students who lack the assets or collaterals essential to obtain a secured loan. Obtaining an unsecured loan rests solely on your creditworthiness.
Unsecured Loan is offered by nationalised banks, private banks as well as NBFCs. Private Banks and NBFCs offer up to 45 lakhs whereas nationalised banks provide unsecured loans only up to 7.5 lakhs.