Top 5 Countries For Masters In Finance Abroad: Education Loan Process

Masters in Finance Abroad: Now we have a clear understanding of our fields of interest for pursuing the master’s degree abroad, and a piece of better knowledge about the various universities that offer a degree in finance with the ultimate exposure for fronting the corporate world. One major concern of students, applying to international universities is managing funds for their 2-year degree. Students search for education loans and scholarships to support their education abroad.

The education loan process must start early. The students shall evaluate loans, get loans sanctioned and collect their solvency letters in time. The process of getting a loan takes time so one should not panic, but should start early. Loan disbursement would be done once the students receive their admission confirmations from the university.

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Top 5 Countries for Masters in Finance Abroad and Loan Procedure

The education loans offered by various banks and NBFCs cover fees of the college and hostel, examination fees, library and laboratory fees, cost of books and instruments, caution deposit, building fund, refundable deposit, insurance premium, costs of a laptop, study tours and thesis. These covered costs might be different for various courses at Universities for Masters In Finance Abroad.

Here we make a guide for everything that one needs to understand about education loans for Masters in Finance Abroad:-

Criteria for Loan Application

• The student must be an Indian citizen.
• The student must be applying for a professional or technical course. It becomes easier to sanction the loan when the course is favourable from a job market’s point of view.
• The students must have secured admission already to the university. The admission confirmation document should be submitted.
• The applicant must be above 18 years or the parents of the student will apply for the loan.

Points to Keep in Mind while Evaluating

• Interest rates on loans offered.
• Different elements (tuition fee, costs of living, cost of books, etc.) covered by the loan.
• Processing fee invloved.
• Income tax exemptions.
• Loan margin and loan processing time.
• Prepayment terms of the loan.

Also, one should confirm few important things before applying for an education loan, which includes:-

• The course for the master’s degree and the nation and university must be finalized initially.
• The rough amount calculation must be done before applying for the loan.
• ts shall make the list of documents required.
• The students must apply for the loan at least 3-months early the visa interview date.
• The time of disbursement must be in advance of the month of the new session.

Education Loan Procedure for Masters in Finance Abroad

THE UNITED STATES OF AMERICA

Masters in Finance Abroad – The United States of America offers some of the best universities for a finance degree, but at the same time, the costs of education and living might be extremely high in the country. Education loans will make these costs significantly lower. Arranging for the necessary documents in advance is important.

This is a list of documents required for an education loan to study in the US:-

• Proof of admission (offer letter issued by the university)
• Duly filled loan application form.
• The estimated cost of study (mentioned in the I-20 form issued by the university)
• Original certificates or mark sheets of class 10th and class 12th.
• Documents of qualifying exams(mark sheet of GMAT, TOEFL, IELTS, CAT, etc.)
• Residential proof of the student ad the co-borrower.
• Income tax returns of the co-borrower.
• PAN card and identity proofs of the student and co-borrower.
• Income certificates of the co-borrower.
• Passport copy of the student.
• Details of assets or liabilities of the parents/ guarantors.

While taking an education loan the student and the co-borrower must keep in mind the moratorium period, that is the time between the issue of loan and the repayment of the loan. This time varies in different banks and during this time the borrower does not have to make any payment to the bank. This period generally lasts after the completion of the degree. Another important factor is loan margin, which is how much percentage of the loan is sanctioned by the bank. One should also check the exchange rate. The exchange rates will have an impact on the number of loans issued.

Collateral plays a major role in sanctioning an education loan. There are options of loans without collateral too. Loans of amount up to 4 lacs INR are sanctioned without collateral, up to 7.5 lacs INR require the parents to become joint borrowers along with a third party guarantee, more than 7.5 lacs require collateral. Collateral may be an FD, shares, bonds, commercial or residential property, land, mutual funds units, gold, government securities, bank deposits, and insurance policies.

The Indian banks and NBFCs offering loans to the students planning to pursue their master’s degree from the USA include HDFC Bank Education Loan for Foreign Education, SBI Student Loan Scheme, SBI Global ED-VANTAGE Scheme, Oriental Bank of Commerce Education Loan for Study in India and Abroad. The non-banking financial companies are Credila owned by HDFC Bank, Avanse a part of DHFL group, Internation Student Loan Programme, Global student Loan Corporation.

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THE UNITED KINGDOM

Masters in Finance Abroad – The United Kingdom is one of the nations where students dream to accomplish their master’s degrees. The nation is well known for finance business schools but accommodation costs of living are equally high. Many Indian banks have come up with favourable.

Important documents that students must collect before applying for an education loan for the UK include:-

• Duly filled loan application form of the bank.
• Identity proofs and residential proofs.
• Age proofs, including birth certificate.
• two passport-sized photographs.
• For students who are already working and earning salaries, salary slips and income proofs need to be submitted.
• Latest salary slip and income tax assessment order of the past 2 years.
• Financial supporting documents.
• Borrower’s last 6-month bank account statement.
• A brief statement of the co-borrower’s assets and liabilities.
• Copies of foreign exchange permit.
• Markesheet for the qualifying examination in India.
• Admission proof issued by the university.
• Estimated expenses.
• Scholarship’s letter.

Some of the banks offering student loans for the UK include Bank of Baroda, Bank of India, Central Bank of India, HDFC Bank, State Bank of India, Syndicate Bank.

• Bank of Baroda provides a loan of up to 60 lacs, and the period ranges to 1 year or 6 months after securing a job. The interest rate is 9.7% to 11.2% maximum. The condition of the loan is that the student must be an Indian national and should have secured admission to the university in the UK.
• Bank of India provides education loans of up to 20 lacs with a 10.90% interest rate. The loan period is 6 months to 1 year after completing the degree and securing a job. The conditions are that the student must be an Indian national and should have a strong academic record. The students should have got the admission to the university through an entrance test and the students must have at least 50% marks in the qualifying exam.
• Central Bank of India provides a loan of up to 20 lacs with an interest rate of 10.40% with some relaxation for female students. The loan repayment period is 1 year after degree completion or 6 months after securing a job. The conditions include a firm academic record with marks over 60% in qualifying examinations.
• Syndicate Bank provides a loan of up to 2 crores with an interest rate of 10.75% to 11.5% with some relaxation for female students. The repayment period would be 1 year or 6 months after completing the degree or securing a job. The conditions are that the borrower must have an account with the bank
• State Bank of India offers a loan of 1.5 crores with an interest rate of 10.50% with some relaxation for female candidates. The loan may be repaid after 1 year or 6 months of completion of degree and securing a job. The conditions are that the course pursued must-have job prospects.
• HDFC Bank offers a loan of 20 lacs with an interest rate of 14%. The repayment may be done after 1 year or 6 months of degree completion. The conditions include that the student should be an Indian national, and secured admission to the university in the UK.

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GERMANY

Masters in Finance Abroad – Germany is one of the most affordable nations when it comes to international education. Private universities do not have any tuition fees. The cost of accommodation is quite low when compared to the USA or UK. The loan application process is simple here and can be started once admission to the university is secured.

The list of documents that the students must collect before applying for a loan:-

• Letter of admission or proof of admission from the university.
• Filled loan application form.
• Documents stating the estimated cost of education.
• Identity proofs and residential proofs.
• PAN card details of the borrower.
• Co-borrower’s bank statements.
• Co-borrower’s statement of assets.
• Co-borrower’s proof of income.

The banks offering loans have a repayment period of 1 year to 6 months after the completion of the degree and securing a job. In Germany, the students have the option to work for 20 hours per week to fulfil their expenses. Students also have the opportunity to apply for an 18-month residential permit to look for a job in the country.

THE UNITED ARAB EMIRATES

There are numerous educational opportunities offered by the public sector in the UAE. This makes it a favourable international education destination. The country is known for its finance degree due to its location in Dubai which is emerging as the finance capital of UAE. The students get an insight into the functioning of the financial markets here. There are education loans offered by banks and NBFCs in India for study in the UAE. Banks usually require collateral for education loans that include property like houses, residential flats, plots with defined boundaries, non-agricultural land. Liquid securities may also be submitted for collateral requirements that include fixed deposits, government bonds, insurance policies, etc. Banks also accept third party’s assets for sanctioning the loan.

Criteria for Education Loan in UAE:-

• For pursuing a master’s degree in the UAE, the students need to apply for bank loans since NBFCs do not offer loans.
• The student’s academic work and marks must be high so that the loan sanctioning becomes easier and simplified.
• Collateral requirements should be fulfilled for a loan according to the bank details.

SWITZERLAND

Masters In Finance Abroad- Switzerland also has some of the best universities and colleges for finance students, including the EU business school. The expenses of education here can be easily met through education loans offered by various banks and NBFCs like Axis bank and ICICI bank in India. Collateral security is also required for the loan sanctioning process when the application is completed. The collateral may be property, liquid securities, or a third party’s assets. The banks also charge an interest rate based on the MCLR(Marginal cost of funds-based lending rate system) plus the spread. The spread refers to an additional premium required by the bank. The loan is sanctioned once all the documents are submitted.

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One must read all the loan agreement documents very carefully, to understand the terms and conditions. This is of utmost importance because these will be applied to the sanctioned loan. If in case doubts persist one must consult the bank’s representatives.

Hence, this guide will help you to arrange all your documents beforehand and apply for education loans smoothly. Once your loan requirements are complete you will feel relaxed and ready to study in the nation of your dreams. All the best!