Studying at a foreign institution can be a prohibitively expensive affair. Completing a bachelor’s degree at a UK institution can loosen your purse strings by at least ₹one crore, and in the US, this figure would more than double, by a conservative estimate. So, without a study loan, this plan is unlikely to work out.
Oftentimes, students rely on big private and nationalised banks for their student loans. And in case the application is turned down for whatever reason, they have nowhere else to go. However, all is not lost even after a bank refuses to give a loan.
Increasingly, a number of financial institutions have started offering education loans to students around the world. Let us take you through some of the popular financial institutions that offer loans for overseas studies.
These are some of the institutions that offer study loans to international students:
1. Prodigy Finance: They are known for giving loans to international students who want to study graduate courses abroad. They have a list of universities and courses for which they give loans.
If someone wants to apply for any university outside this list is also free to apply, but the chances of loan approval would be relatively lower. Some of the courses for which they give loans include MBA, Engineering, law and public policy.
2 Avanse Financial Services: It offers collateral-free education loans to students to study abroad at reputable institutions. Anyone who has a confirmed offer letter from an overseas university can apply. The applicant also needs to have an earning co-signer in India who should be a sibling, parent or guardian.
In fact, all education loans require a co-signer who should ideally be a family member. Avanse offers a 100 percent loan which covers fees as well as living expenses.
3. Leap Finance: They offer loans to Indian students who want to study MS in the US. They straight away transfer fees to university’s bank account, and charge interest in the range of 8.25 percent to 10.25 percent per annum. They don’t ask for collateral for study loans.
They charge a processing fee between 1.5 to 2 percent.
4. Unicreds: They work as coordinators for students to get the best deal with banks based on their profile and application. To be able to apply for an education loan, one can get in touch with a counsellor to seek a loan with or without a collateral.
The application is then processed by their associates such as HDFC Credila, Barclays, ICICI Bank and Santander. Once the loan application is cleared, the students can get the loan.
Of late, some students even manage to raise funds through social media driven crowdsourcing. Lately, some active social media users have managed to raise large amounts by creating a fund-raising page on such platforms as Ketto and Milaap and by sharing the same on their social media handles. And with the help of some influencers, they can garner adequate attention, and sometimes — adequate money too.