Every year, thousands of Indian students pursue overseas education, and many more aspire to do so. While education loans are a common avenue to fund studies abroad, securing such loans isn’t as straightforward as it may seem.

Based on a report, an estimated 1.8 million students might opt for education loans for higher studies abroad in 2024. For those seeking efficient ways to secure education loans, here are some tips to simplify the process.

Enrol in esteemed institutions:

The reputation of the chosen institution plays a pivotal role in the approval of education loans. Students often make the mistake of opting for lesser-known institutions due to lower fees, but this can impact loan approval. When selecting an institution, verify whether the bank easily provides education loans for admission.

Explore multiple financing options:

Education loans for studying abroad aren’t limited to banks. Nowadays, international organizations such as Prodigy Finance and M Power, in addition to banks and non-banking financial companies, offer education loans. Many universities also assist international students in securing education loans.

Maintain a positive credit score:

As with any loan, a favourable CIBIL score is paramount for education loan approval. A higher credit score increases the likelihood of loan approval. Hence, it’s advisable to ensure timely repayment of all loans before initiating the education loan application process.

Explore scholarships and grants:

While studying abroad, exploring scholarships and grants is crucial. Many universities and colleges offer full scholarships, which can significantly reduce the need for an education loan. In addition, loan scholarships are now available, with organizations like Tata Foundation and Aga Khan Foundation providing zero-percent loan products and grants.

Prepare essential documents for education loan:

Beyond KYC documents, ensure salary slips and income tax returns are ready. Before applying for an education loan, both the applicant and the collateral provider should have income tax return documents for the past few years. Also, ensure readiness with confirmation letters and other documents received from the institution.