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How to get an education loan in India for NRI applicants? GyanDhan brings you a complete guide on different lenders that provide loans for NRI applicants, power of attorney transfer and how to apply for an education loan as an NRI.
After graduation, NRI students often choose universities in the same country for their higher education. However, financing quality education abroad can be a burden. Unfortunately, NRI students face strict government regulations for obtaining student loans, especially in countries like the U.S., where they don't qualify for federal loans.
To manage expenses like travel, living costs, tuition fees, and more, an education loan can be crucial for NRI applicants. Opting for an education loan offers advantages such as tax benefits for co-applicants and the favorable exchange rate of the Indian currency against the dollar. If you're an NRI with big dreams of studying abroad, we've got you covered. Get all your questions about education loans for NRI applicants resolved here.
Check Your Education Loan Eligibility
There are two types of education loans that an NRI applicant can apply for -
Secured education loan - also known as an education loan with collateral. This is a loan where the applicant pledges security along with the loan application. This security can be movable assets (Fixed Deposits, LIC Insurance, and more) or immovable assets (non-agricultural land, residential property, or commercial property). Almost all the public banks in India require collateral to provide you with an abroad education loan. Read more about: Types of Collateral Security Acceptable for an Education Loan
Unsecured education loan - an education loan that does not ask the borrower to pledge collateral as security is called an unsecured education loan. Not having security leads to an increased risk for the financial institution and that is why you will usually find the rate of interest of these types of loans on a higher side as compared to secured education loans. These loans also demand a co-applicant or co-signer. It is on the basis of the co-applicants income and CIBIL score that the loan is.
Just like a normal student application for an abroad education loan, NRI applicants are also eligible to get education loan from the same lenders. The only difference is in the loan Quantum, margin money, and some other features. The different lenders that can provide you with an abroad education loan as an NRI applicant are -
The eligibility criteria to get an abroad education loan as an NRI application is quite simple. Actually, it is nearly the same as any other applicant. The eligibility criteria are as follows -
One additional step involved in obtaining an abroad education loan for NRI applicants is the Power of Attorney (POA). This legal document grants one person the authority to act on behalf of another individual, empowering them to make legal and financial decisions. The POA can provide either complete or restricted power to the designated individual, enabling them to carry out various actions and make necessary financial choices.
In this as well there are three situations for making decisions about POA. These situations are -
Read More About: Educational Loan on Agriculture Land: Is it Possible?
The documents that are required from an NRI applicant to get an abroad education loan are -
Calculate your Education Loan EMI
To get an abroad education loan you would have to follow the below-mentioned steps which are just like applying for a loan in case of a general applicant.
Being an NRI applicant does not prevent you from accessing education loans for studying abroad through lending options available in India. So, why wait? Check your loan eligibility now with GyanDhan and begin your loan application process today.
Read Also
Yes, NRI applicants are eligible for education loans, but the catch is that the loan quantum decreases i.e. for an unsecured education loan the maximum loan cap will be up to 30 Lakhs INR. The rate of interest may also vary. The margin money can also go up to 15% in the case of NRI applicants.
In simple words when the applicant transfers the signatory authority to somebody else like a parent to complete the loan process. This is usually done as the applicant is an NRI but somebody is needed in the country to sign and complete the loan application process.
The eligibility is as follows:
Check Your Education Loan Eligibility
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