Outlook Money
Studying abroad has become common for the students of India, even from tier-II and tier-III cities. However, studying abroad is a very expensive process and the disbursal of education loans is very complex.
The subjects in top demand for overseas education are computer and information science, data science, analytics, and IT. Next comes engineering courses, followed by management courses.
Some basic queries that parents and students come up with are; the types of expenses covered under education loans, tuition expenses, living expenses and other expenses apart from tuition and living.
Students applying for loans overseas either pay simple interest or partial interest for the loan. Complete EMI is also paid by the students once a job is acquired, it is optional during the course.
Education loan overseas covers all expenses including tuition fees, living expenses and other miscellaneous expenses (this is an India-based expense which includes pre-departure expenses like buying a laptop etc)
Collaterals/Security required, property and Cash-related collaterals are excluded under the overseas education loan.
Some education loans get rejected because of various reasons like Less than favourable credit bureau histories or negative references during checks by financial institutions etc.
Compiled by Syed Muskan