Education Loans to Study in Italy

Updated on: 05 Sep 2023

Pioneering major developments in the areas of fashion, art, science, and technology, Italy is one of the preferred destinations for international students. With over 40 universities in the QS World University Rankings, the country is known for offering top-quality education and fostering highly employable individuals. There were more than 5,000 Indian students studying in Italy for the year 2021/2022 as per Italian Ambassador Vincenzo de Luca and it is expected that this number will see a constant increase in the coming years. 

Now let’s look into the financial side of studying in Italy. Is studying in Italy expensive? What are some different lenders that can provide you with education loans to study in Italy? Is it easy to get a loan in Italy? What is the process of getting a loan? Do not worry, all your questions will be answered in this blog.

Type of education loan available to study in Italy 

The different types of education loans that you can choose from to study in Italy are:

1. Secured education loan - A type of loan that is commonly referred to as an education loan with collateral requires the borrower to provide security. This security can take the form of movable assets such as fixed deposits and LIC insurance, as well as immovable assets like non-agricultural land, and residential or commercial property. It is worth noting that in India, nearly all public banks require collateral in order to grant an education loan for studying abroad.  
2. 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-applicant’s income and CIBIL score that the loan is.

Cost to study in Italy

Before moving to different lenders for education loans to study in Italy, let’s first evaluate the average cost to study in Italy. It is important to know this as this will help you to ensure that you are able to take the right amount of loan from the chosen lender. The average cost is shown in the table below -

Lenders that provide education loan to study in Italy

There are different lenders which can provide you with secured and unsecured education loan to study in Italy. The different lenders which can provide you with education loan to study in Italy include public banks, private banks, NBFCs, and international lenders. A comparative analysis has been done between different lenders so that you can get a better idea about all the lenders and their offered loan services. 

Eligibility criteria for getting education loan to study in Italy

It is important to verify if you meet the eligibility requirements for the loan before submitting your application. The eligibility criteria may vary among different lending institutions. Below are some common eligibility criteria that are typically followed by most lenders:

• The applicant should be a minimum of 18 years of age and a resident of India. 
• The applicant must have secured admission at an Italian university and must have a admit letter to prove the same.
• Must have completed either schooling or a bachelor’s from a reputed Indian institute and should have had a good academic performance till now.
• In case of an unsecured education loan, the applicant must have a financial co-applicant, and depending on the lender the minimum income requirement from the co-applicant can go up to 40,000 INR per month without obligations.

Document required for education loan to study in Italy

Unlike any other loan, an education loan for studying in Italy will also require different documents which need to be submitted during the loan application process. These documents are - 

• Applicant’s KYC documents
• Mark sheets of 10th, 12th, and bachelor’s. 
• Admission letter
• Fee structure
• Co-applicant KYC and income proof
• Additional documents may be requested in case of collateral required
  • Accepted Security/ Collateral:
  • Residential/ commercial property/ plots (Non-agricultural)
  • Fixed deposits.

Read more about: Documents Required for an Education Loan

How to apply for education loan to study in Italy?

The process of applying for an education loan to study in Italy is quite simple, especially when you apply through GyanDhan. All you need to do is follow the below-mentioned procedure -

• You can begin the process by checking the eligibility for your education loan through GyanDhan’s eligibility checker.
• After this, an education loan counselor from GyanDhan will get in touch with you and will explain all about the education loan to study in Italy. 
• A customized document checklist will be provided to you as per the shortlisted lender, you have to arrange all the documents and then submit the same. 
• Lenders will verify the documents with the details that you have filled in the application form. 
• An approval/sanction letter will be provided to you with an agreement letter. If you agree with the same then you need to sign the agreement letter and send it to your lender. 
• Depending on your need and the lender, you can either get the amount disbursed to your bank account or directly to your university.

Expenses covered in education loan to study in Italy

The lender may cover tuition fees as determined by the college or university, as well as up to 100% of other expenses such as living and hostel expenses, travel expenses, examination fees, library and laboratory fees, and the purchase of books, equipment, instruments, uniforms, and computers or laptops necessary for completing the course. The lender may also provide you with travel fares which will be limited to one economy-class return ticket between India and the country where the student is studying.

Acquiring sufficient knowledge about the loan process before applying for a study loan in Italy can significantly enhance your experience. Italy is an excellent study-abroad destination with numerous lenders who can offer loans for education. This can lead to confusion in choosing the most appropriate lender. Thus, with all the knowledge related to education loans for Italy and a comparison of lenders, you will be able to make an informed decision. If you still feel like you need some expert advice or help, you can connect with GyanDhan’s loan experts by checking your loan eligibility here.

Read Also

• Italy Student Visa For Indian Students
• Italy Universities Application Deadlines
• Education Loan to Study Abroad
• Study Abroad Scholarship for Indian Students
• IELTS vs TOEFL vs Duolingo vs PTE: Which English Test to Take?

• Education loan 
• Student loan 
• Study abroad 
• Italy 

First published date: 05 Aug 2020