Student Loan for the United States and Canada
A step-by-step process for availing Student Loans for the United States and Canada
Applying for Education Loans for higher studies abroad might seem like a daunting task at first. However, once you understand the following steps, the process will become simpler for you:
1. Figure out the cost of education
Getting an education in the United States and Canada is not an inexpensive procedure. Before applying for an Education Loan for abroad studies in an academic institution of your choice, you should have a clear idea about the overall cost of the education. This does not include only the admission and tuition fees. It includes the living expenses, hostel rent, cost of study materials, food, transportation, so on and so forth. All of these expenses are mentioned either on the university website or on the admission offer letter. Depending on the total costs of a particular course at a particular academic institution, you will be able to decide the loan amount you want to apply for.
2. Compare the loans from different Banks and NBFCs
After you figure out the necessary loan amount, compare the different Education Loans provided by Banks and NBFCs for abroad studies. Every Bank or NBFC has something different to offer with its unique services, and you should choose the one that meets all your needs and requirements and works best for you. A comparative analysis of each Education Loan for abroad studies can be done on the basis of parameters like the eligibility criteria of the banks and financial institutions, interest rates, processing fees, tax benefits available, the range of costs covered, Moratorium Period, service charges, etc.
With the HDFC Credila Student Loan for study abroad, you can get loans with no upper limits for your undergraduate, master’s or research degree in the USA and Canada. The interest rates are nominal, and the range of tax benefits is high. HDFC Credila is an NBFC under HDFC Ltd., offering customized Education Loans above 20 Lakhs, along with doorstep service to applicants, even before the completion of their admission process.
3. Fill out the loan application form
After the due research about the costs and a comparative analysis of the loan lenders, you can fill out the application form for an Education Loan with your desired bank or financial institution. The application form needs you to fill in your academic qualification and information, the course you are applying for, the income of your family, etc. All of this information should be filled carefully, making no error or distortion of data, lest your application is rejected.
4. Keep the documents ready
Every bank or financial institution requires you to submit certain standard documents when applying for an Education Loan. These are:
The application form for the loan– fully completed with all the details and signed.
Two passport-sized photographs for both applicant and co-applicant.
Photo ID and Residence Proof for both applicant and co-applicant. Valid documents include PAN Card, Passport, Driving License, Aadhar Card, and Voter’s ID card.
Academic documents of the applicant.
Marksheet/certificate for 12th standard exams.
Marksheet/certificate for any subsequent years of education.
Marksheets for the entrance exams the applicant appeared in.
Marksheets for GRE/GMAT/TOEFL/IELTS etc.
Scholarship documents, if required.
Proof of Admission in the institute in Canada or the United States, if available.
Bank Statements of all the bank accounts of the co-applicant, for the last 8 months.
If a loan is taken against immovable collateral like a flat or a non-agricultural plot, relevant documents are required. These documents include Property Title Deed, 7/12 extracts in case the collateral is a land, registered sale agreement, NOC for a mortgage from either society or builder, latest property tax bills, allotment letter by the authorized government authority, latest maintenance bills and receipts, approved building plan, etc.
Proof of Income of co-applicant.
In case of the co-applicant being a salaried employee, the last 3 Salary Slips, and either the Form 16 from the employer or the Income Tax Returns for the last 2 years are necessary.
If the co-applicant is self-employed, the Income Tax Returns for the last 2 years, the certified financial statements for the last 2 years, and the Proof of Office with lease deed, utility bill, etc. are required.
5. Sign the loan document
After you submit the application form along with the required documents, you await the approval of your loan. On approval, the bank provides you with a loan document outlining every important detail about the loan, as well as the terms and conditions. Details include the amount of loan granted, the interest rate, mode of disbursement of the loan, the repayment period, etc. It is advised that you sign the loan document only after you have read it thoroughly.
Conclusion
With these five simple steps, you can get yourself the best Education Loan for study abroad in the Canada and USA, depending on your requirements. Once you sign the document, the loan amount gets disbursed to your academic institution directly. After the end of your Moratorium Period, you can start repaying the loan in EMIs.
Half-baked knowledge can be dangerous! This is true especially with respect to an overseas education loan process, of which most higher education aspirants have no complete knowledge. Many students are under the impression that it is compulsory for loan applicants to purchase loan insurance. A lot of them reconsider their decision to borrow an overseas education loan, just by thinking about the overall cost of their education loan insurance. However, have you ever wondered how loan insurance could be crucial to the entire education loan process? This article aims to clarify certain myths about the same.
Is it Compulsory to Purchase Education Loan Insurance?
The requirement for an education loan insurance varies from lender to lender. When it comes to the abroad education loan process of government banks, it is not compulsory to buy education loan insurance along with the study abroad loan. Most government banks leave it to their applicants to decide whether to purchase loan insurance under any of the education loan schemes offered by them.
When it comes to the abroad education loan process of NBFCs and private banks, all applicants of an education loan without collateral must purchase an education loan insurance. This is a mandatory requirement that every student who applies for an education loan without collateral is expected to fulfill. The main reason why NBFCs insist on the purchase of loan insurance is that none of them asks students to pledge any collateral security in return for an abroad study loan. So, if you plan on funding your higher education with the help of an education loan without collateral, you will be required to purchase an education loan insurance.
