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Overseas Education Loans VS Scholarships: Which is the Best Financial Assistance?

Overseas education is a dream cherished by countless students worldwide. The prospect of obtaining a top-notch education, gaining a global perspective, and experiencing diverse cultures is undeniably alluring. However, pursuing education in a foreign land can be financially challenging. Studying abroad comes with a lot of apparent and hidden expenses which encompasses tuition fees, living expenses, travel, and more.

To mitigate this financial burden, students often turn to two primary options: Overseas Education Loans and Scholarships. In this article, we will delve into the intricacies of these two financing avenues to help you make an informed decision. So, keep reading to find out the nuances of scholarships and student loans for studying abroad.

Financing Education Abroad: Overseas Education Loans VS Scholarships

1. Overseas Education Loans VS Scholarships: An Overview

Overseas Education Loans: Overseas education loans, often provided by banks or financial institutions, are financial tools that enable students to fund their international education. These loans typically cover tuition fees, living expenses, travel costs, and other study-related expenditures. They are repayable with interest, usually after the completion of the education or through a predetermined repayment schedule.

Scholarships: Scholarships, on the other hand, are merit-based or need-based financial awards that do not require repayment. These can be offered by universities, government bodies, private organizations, or even based on academic achievements, talents, or other criteria. Scholarships can cover a part or the entire cost of education, depending on the scholarship program. You can find many Indian government scholarships for studying abroad.

2. Overseas Education Loans VS Scholarships: Quantum of Finance

Overseas Education Loans: The quantum of finance available through education loans can vary widely based on the lender, the course, and the destination country. In many cases, education loans cover up to 100% of the total expenses, including tuition fees, living expenses, and more. Interest rates on these loans may be fixed or floating, and the repayment tenure can extend over several years, allowing for flexibility in repayment.

Scholarships: Scholarship amounts, on the other hand, depend on the specific scholarship program and the criteria for eligibility. Some scholarships cover only a portion of the expenses, while others can cover the entire cost of education. Scholarships often require students to maintain a certain level of academic performance to continue receiving the funds.

3. Overseas Education Loans VS Scholarships: Expenses Covered

Overseas Education Loans: Education loans typically cover a wide range of expenses, including tuition fees, living expenses, accommodation, travel, books, and even miscellaneous expenses. This comprehensive coverage ensures that students have the necessary financial support to pursue their studies without worrying about day-to-day costs.

Scholarships: Scholarships can vary in terms of what expenses they cover. While some scholarships may cover only tuition fees, others may extend to living expenses, research costs, and even provide a stipend for personal expenses. It's essential to carefully read the terms and conditions of each scholarship to understand the extent of coverage.

4. Overseas Education Loans VS Scholarships: Eligibility Criteria

Overseas Education Loans: To secure an education loan, students typically need to meet certain eligibility criteria, including a good academic record, admission to a recognized university, and sometimes a co-signer (usually a parent or guardian) with a stable financial background. Credit history and collateral may also be required, depending on the loan amount.

Scholarships: Eligibility criteria for scholarships can vary significantly. Some scholarships are solely based on academic merit, while others may consider factors like financial need, extracurricular activities, community involvement, or specific talents. It's crucial to research and apply for scholarships that align with your strengths and circumstances.

5. Overseas Education Loans VS Scholarships: Top Benefits

Overseas Education Loans

  • Provides immediate access to funds.

  • Flexible repayment options.

  • Can cover the entire cost of education.

  • No need for constant academic performance scrutiny.


  • Does not require repayment

  • Recognizes and rewards academic or other achievements.

  • Enhances your resume and academic profile.

  • Encourages academic excellence.

After knowing the nuances of these most sought-after funding options, we are sure that you would want to know more about the application process. Let’s discuss the application process for these two ahead.

Application Process for Overseas Education Loans and Scholarships

Application Process for Overseas Education Loans

1. Research Financial Institutions & Lenders: Begin by researching banks or financial institutions that offer education loans for international students. Contemplate factors like interest rates, loan tenure, and processing fees.

2. Gather Required Documents: Prepare necessary documents, including admission letters, academic records, proof of collateral (if required), and co-signer details.

3. Apply to Lenders: Submit loan applications to the shortlisted lenders. Compare various loan providers and choose the one that fits your needs.

4. Loan Approval: Once your application is approved, review the terms and conditions carefully before accepting the loan.

5. Disbursement: The lender disburses the approved loan amount directly to the university or to your account.

Application Process for Scholarships

1. Research Scholarships: Explore scholarship opportunities through university websites, government programs, and private organizations. Pay close attention to eligibility criteria and application deadlines for your shortlisted scholarships.

2. Prepare Application Materials: Gather required documents, which may include transcripts, recommendation letters, essays, and a well-crafted personal statement.

3. Submit Applications: Follow the application guidelines and deadlines for each scholarship you wish to apply for.

4. Interviews Process: Some scholarships may require interviews as part of the selection process.

5. Notification: If selected, you will receive a notification detailing the scholarship award and any additional requirements or responsibilities.

This is everything that you must know about overseas education loans and scholarships. Choosing the best funding option among these two will entirely depend on your financial requirements.

In the pursuit of international education, funding is a fundamental concern. Overseas education loans and scholarships are two valuable options, each with its unique advantages and considerations. If you don't secure a scholarship or if the scholarship amount falls short of your expenses, you can take an overseas education loan to cover the financial assistance needed.

At ÉLAN, we specialize in providing quick loan sanctions for education loan aspirants. Reach out to our team of experts to learn more about the application process. Still wondering how to get education loan for abroad studies? We are here to answer all your questions, schedule your visit today with team ÉLAN.


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