Money
Education Loan
What is an education loan?
An education loan for overseas study is a secured or unsecured loan from a bank or non-banking lender covering tuition, living costs and travel. The sanction letter is accepted as proof of funds by most student visa routes, and for Indian applicants it is usually issued against collateral above a threshold that varies by lender.
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Who needs an education loan?
Applicants funding study from borrowing rather than family savings, which is the majority.
How do I get an education loan?
- Get the admission or offer letter first; most lenders will not sanction without it
- Assemble the cost estimate, your academic documents and the collateral papers
- Apply to more than one lender, since sanction amounts and margins differ
- Allow three to six weeks for sanction, longer where property valuation is involved
Common mistakes
- Waiting for an unconditional offer before opening the loan file
- Applying to one bank and having no fallback when the sanction lands short