Higher education in abroad countries is a dream for many students. Many students wish to study their bachelors or masters in abroad countries but drop the idea due to lack of funds.

But not to worry because, we at MS Global Education Consultants assist students in educational loans for their study abroad needs. We understand that an Educational Loan would be of utmost help to most students in funding their education. We currently have a complete list of banks offering Educational Loans for various programs to students at reasonable rates. We also have tie-ups with well known banks to ensure you get the loans you require.

At MS Global Education Consultants, we make sure that the process is hassle free and convenient for our students. We also make sure the student’s doubts are clarified regarding study abroad programs and educational loans.

Procedure for Educational loan

Eligibility

To obtain an educational loan, the student should have got admission from the approved universities and have the offer letter as a proof.

The student must be able to provide collateral properties as a guarantee or have an earning member as a guarantor who can provide the pay slip / IT returns as proof of their income and should be eligible to pay the applied loan amount.

To apply for an educational loan, the following steps must be done.

Step 1: Fill in the loan application form

The applicant has to fill in an application form which may ask for details such as contact details, details relating to academics etc. it is important to fill in accurate information.

Step 2: Personal Discussion

Once the applicant, ie the student fills in the form, there is a round of personal discussion wherein he/she may be asked various question relating to the academic performance, the course one has selected, probably the institute etc. At this stage, it is very important to be lucid and clear about one's selection of course and its future potential of generating income. While some banks are known to hold the academic record important, some may give it a slightly lesser attention. This does not go to say that one needs an excellent academic record. But, make sure that there are answers to those mishaps that could have occurred during the academic life.

Step 3: Provide validated supporting documents

Unlike other loans where the talk of documents relating to say property, might come in at a later stage and may cause delay-documents are a must. In case of education loans, documents relating to admissions are mandatory even before the bank considers the loan application. The bank will verify the enrollment of the student from the concerned institute. One may also require collateral security such as papers relating to property to be mortgaged if the loan amount is above Rs. 4 lakh.

Step 4: Stage of loan approval or denial

When one takes some other kind of loan, there is a co-guarantor, especially in case of personal and home loans. For an education loan, a guarantor is mandatory. The guarantor could be an applicant's parents or guardians. The bank will run a thorough check of the guarantor and his/her credit history before sanctioning the loan. After completion of the process, the loan may be sanctioned or denied.

Step 5: Borrower's signature on a Promissory Note

While the parents/guardians are guarantors, the student is the actual borrower of the loan. Once the loan is sanctioned, the student has to sign a promissory note to the bank.

Step 6: Disbursal of the loan

Once the formalities are completed (additional documents and signed post-dated cheques may be required), the bank will disburse the loan. The bank may disburse the college/institute fee directly to the concerned institute.

Online Applications

In the current times, availing an education loan has been made even easier. Now, one can apply for an education loan online. The loan will be sanctioned only in principal and the applicant will have to contact the bank for actual approval and disbursement of the education loan.

---

Bank Guidelines for Students

We can refer the Bank and students have to co-ordinate with bank staffs and submit the documents required by the banks. The students should co-ordinate further with the banks for completing loan procedure.

• Basic document needed to proceed with educational loan
•       Guarantor Sign is a must and he should be an earning member. Guarantor may be parent/blood relation.
•       IT returns or pay slip / Form 16 is must for proof of Income.
•       In case of Co-borrower, he can be a friend or a relative.
•       Property collateral is also must. If bank loan is needed for 20 lakhs then you need to show a property for at least 25 lakhs.
• Interest rate will be fixed based on student profile/property/ Guarantor’s profile / course /country. Mostly in Pvt banks rates ranges from 12.5 to 13.5%.
• Normally monthly interest should be paid from the month of Loan taken. Few banks may add this interest with principal amount which attracts cumulative interest.
• Repayment: After 1 year of study or attainment of Job whichever is earlier.
• Tenure : within 5yrs student have to repay their loan in 60 equal installment.
• Processing time for sanction of bank loan duration will be 1month, if documents all the documents are ready and in order.
• Agricultural lands are not acceptable. Residential Approved property preferably a building can be accepted.
• Initially most of the bank will provide Loan sanction letter and may disburse the cash only after your visa is approved.

---

Document Checklist for Educational Loan

Borrower: (Student)

• Admission letter from the university, course fees details (If any).
• Completed application form with original photo pasted on the application.
• 10, +2, UG individual mark sheets.
• Proof of identification: (Passport, Voter ID, PAN Card, Govt/ Defence ID card, ID cards of reputed Employers, Driving License).
• Present & Permanent address proof (Credit card statement, Income tax/Wealth tax assessment order, Telephone Bill, Bank account statement, Letter from reputed employer, Letter from any recognized authority, Ration card).
• Photographs- 2.

Co-Borrower: (Father or any Blood Relations)

• Pan card copy, Photo ID, Proof of DOB & Sign Proof.
• Present & Permanent address proof.
• Latest 3 months pay slips.
• Latest 8 months salary credited bank statement.
• Latest 8 months savings a/c Bank Statements.
• Latest 2 Years Form 16.
• Own House Proof - EB Card & Property Tax.
• Photographs – 2.

Additional Co-Borrower: (If Self Employed)

• Pan card copy, Photo ID, Proof DOB & Sign Proof.
• Present & Permanent address proof.
• Proprietorship Deed or Partnership Deed, M O U.
• Last 8 months Current a/c bank statements.
• Last 8 months savings a/c Bank Statements.
• Last 2 Years ITR with Balance sheet.
• Own House Proof - EB Card & Property Tax.
• Photographs - 2.

Guarantor: (If Other Country)

• Pan card copy, Photo ID, Proof of DOB & Sign Proof.
• Present (Other Country) & Permanent address proof (India).
• Latest 3 months pay slips (Other Country).
• Latest 8 months salary credited bank statements,(Other Country).
• Latest 8 months Transfer a/c Bank Statements, India.
• Latest 2 Years ITR with Balance sheet.
• Own House Proof - EB Card & Property Tax.
• Photographs – 2.

If Pensioner

• Pan card copy, Photo ID Proof of DOB & Sign Proof.
• Present & Permanent address proof.
• Latest 3 months pay slips.
• Last 8 months salary credited bank statement.
• Last 8 months savings a/c Bank Statements.
• Last 2 Years Form 16.
• Own House Proof - EB Card & Property Tax.
• Photographs - 2.