Education Loan

Education Loans for Diploma Courses Abroad: A Detailed Guide

Education Loans for Diploma Courses Abroad: A Detailed Guide

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Read in detail about education loans for diploma courses abroad. Know the loan products, lenders, and application process, for both abroad UG & PG diploma courses.

GyanDhan
Gurbani Kaur Suri
Updated on:  10 Oct 2023  | Reviewed By: 
Aman 
| 9.07K | 6  min read

For many of us, the idea of studying abroad is simply a lofty fantasy of meteoric career growth, foreign landscapes, and languages. While the notion of being able to experience it appeals to many, daily realities of the astronomical overseas cost of living and commitments to family and work-life in India too often keep abroad education dreams a flight of imagination. For those who want to keep the duration of their education abroad shorter or do not want to pursue a traditional undergraduate or postgraduate degree, a whole range of diploma courses abroad programs exist. To fund these courses, there are several banks and NBFCs in India that provide education loans for diploma courses abroad. 


Around the world, there are many institutions and universities of higher education that offer diploma courses and certificate programs that usually span for either one or two years. If you have cleared your higher secondary school examinations, you can pursue a Bachelor's diploma. In the same way, qualified graduates can proceed to study PG diploma courses abroad.

As studying overseas is a costly affair, you might need an education loan for diploma courses abroad. In India, banks and NBFCs do offer loans for specialized courses, training, and diplomas overseas. In addition to the course taken, a lender also considers the reputation of the college from which you are planning to do the course. Your target college must have a good placement record so that you are in a good position to repay the education loan in the future. 

In this blog, we will study the different education loan options for foreign diploma courses, but before that, we will try to know a bit about the courses and their benefits. So, let’s dive in…

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What are the different diploma courses offered abroad?

The names of diploma courses vary in different countries. They are also named Graduate Diploma, Post-Graduate Diploma, Advanced Diploma, etc. In all cases, a diploma qualification has a value that enables students to take up a job or even go for further studies.

When it comes to choosing a diploma course, it is an unnerving task for students as short courses offer a wide range of subjects for study. The course duration depends on the country, course, and college.

Usually, the diploma courses abroad include:

  • list items Undergraduate Diploma Courses
  • list items Postgraduate Diploma Courses
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What are the major benefits of doing diploma courses abroad?

Pursuing a diploma course abroad has several benefits. Some of them are:

  • list items Take less time to complete.
  • list items Highly job-oriented and deliver hands-on training making students job-ready.
  • list items Make students experience a new culture.
  • list items Allow students to learn to work and study independently.
  • list items Typically cost less than the corresponding degree courses.

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Which countries are best to study diploma courses abroad?

Studying abroad prepares you to take up a job anywhere around the globe and this remains the focus of international study programs. Studying overseas diploma courses in countries that are technologically developed gives one a wide array of opportunities and new viewpoints that open up for the students.

For foreign diploma courses, students choose countries that are more suited for the purpose.

The best countries to study diploma courses abroad are:

  • list items Canada
  • list items The United Kingdom
  • list items The United States of America
  • list items Australia
  • list items New Zealand
  • list items Ireland

Read more about: GRE Scholarships for Indian Students in Canada.

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What are the types of education loans for diploma courses abroad?

Education loans that are offered for overseas diploma courses can be broadly segmented into two types - Secured Loans and Unsecured Loans. 

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1. Unsecured Education Loan

An unsecured loan is a loan without collateral. In these types of loans, the borrower does not need to pledge any tangible or intangible asset. These education loans have a moderately shorter repayment period. Though, their interest rate is higher than that of secured loans. In addition to this, their rate of approval is somewhat lower than that of a secured loan. It must be noted that government banks and private-sector banks do not offer without collateral education loans for diploma courses for more than INR 7.5 Lakhs which is usually not sufficient given the total expense.

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2. Secured Education Loan 

A secured loan is also termed a loan with collateral. In these loans, the borrower has to pledge a tangible or intangible asset. Examples of assets are immovable property, insurance policy, FDs, etc. The lender considers this collateral as a security against the amount and can use this to recover the loan amount if there is a case of default. A loan with collateral has a lower interest rate and a longer repayment period as well. Some of the other benefits of taking a secured loan are no requirements for co-applicant’s income, no repayment during the study period, and a higher rate of approval.

To know more about Types of Collateral Security Acceptable for an Education Loan, click here.

When it comes to picking between unsecured and secured study loans provided by NBFCs for diploma courses abroad, it is recommended that students opt for secured loans from government banks like SBI and Bank of Baroda. The interest rate for secured loans offered is comparatively much lower than that for loans without collateral, almost to a difference of 4%-6%. As this difference makes a considerable difference in the EMIs a borrower would have to pay, one should select that option that significantly decreases their financial drain in the future. Consequently, even if you are unable to pledge any of your own assets as collateral, you could also consider putting a third-party collateral- an asset owned by a third party.  

The interest rate on the education loan is different for different lenders which ranges from 8%-16%. Income tax benefits can be claimed on the principal part of the study loan provided the individual is directly linked to the borrower and has taken a loan from either a government or a private bank. Education loan covers almost all the costs required to complete the course. It encompasses tuition fees, library fees, hostel fees, travel expenses, books and equipment, and other expenses. Lenders also offer a moratorium period (repayment holiday) soon after which the borrower can start the principal amount repayment.  

Check Your Education Loan Eligibility

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What are the types of lenders that offer education loans for diploma courses abroad?

There are mainly 3 types of lenders that provide education loan to study diploma courses abroad:

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How to get an education loan to study diploma courses abroad?

  • list items Check your loan eligibility.
  • list items Get expert education loan counseling from GyanDhan’s counselor to compare the education loan products. 
  • list items Choose a lender and apply online on our platform.
  • list items Avail of your customized document checklist.
  • list items Submit the required documents either online or get them picked up from your home by our representative.
  • list items Get the property & other legal evaluation done (in case of loans with collateral).
  • list items Get your loan sanction letter once the lender approves the loan.
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How can GyanDhan help? 

GyanDhan has partnered up with top education loan lenders in the market and can help you get an education loan without any hassle. The loan process for abroad diploma courses is streamlined so that you can get an education loan without running from pillar to post. Your assigned loan counselor will be available to you all through the loan process to keep you updated on your loan status. Also, if any problem erupts in the loan procedure, it will be swiftly resolved by them, through leveraging our partnership with the lender. GyanDhan offers loan assistance free of cost to the students. To apply, check your loan eligibility now!

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