Student Loan Options for Online Degrees in India & Abroad

 

Student loans play a crucial role in enabling access to higher education, both within India and abroad. These financial aids help cover various expenses, including tuition fees, accommodation, and other living costs, making educational aspirations achievable for many students ^.

Studying abroad offers a transformative experience with far-reaching benefits across academic, personal, and professional spheres. Academically, it exposes students to new educational systems and diverse perspectives from international faculty and peers, enhancing their understanding of their chosen field and allowing them to take unique courses not offered at their home institutions .

On a personal level, living in a new country fosters independence and self-sufficiency as students navigate unfamiliar environments and adapt to different cultures, challenging their perspectives and building resilience ^. This immersion also provides an unparalleled opportunity to learn a new language, going beyond classroom instruction to achieve fluency through everyday interactions ^.. Moreover, studying abroad broadens one's worldview, promotes cultural awareness, and helps students develop empathy and understanding for others ¹.

Professionally, international experience is highly valued by employers, with many reporting that study abroad is a significant factor when evaluating resumes ¹. It demonstrates adaptability, independence, cross-cultural communication skills, and the ability to work in diverse environments – qualities crucial in today's globalized workforce ¹. Additionally, studying abroad allows students to build a global network of contacts, which can lead to future career opportunities, and can significantly enhance graduate school applications by showcasing a global perspective and adaptability

 

Availability and Types of Student Loans

In India, numerous public and private banks offer education loans for diverse educational needs. These loans are broadly categorized based on the study location, collateral requirements, and the type of course.

By Location:

• Domestic Loans: These are for students pursuing education within India at recognized institutions .
• International Loans: Designed for students seeking to study abroad, these loans cover a wider range of expenses, including travel and living costs in the foreign country .

By Collateral:

• Secured Loans: These require collateral, such as property, fixed deposits, or other investments, as security against the loan .
• Unsecured Loans (Collateral-free loans): Available for smaller loan amounts (often up to ₹7.5 lakh) or for admissions to premier institutions, these loans do not require collateral .
• Guarantor-Based Loans: Some loans may require a third-party guarantor ^.

By Course:

• Undergraduate Loans: For bachelor's degree programs.
• Postgraduate Loans: For master's or advanced degree programs.
• Career Enhancement Loans: For professionals pursuing short-term courses, training, or certifications ^.

Eligibility Criteria

While specific criteria may vary between lenders, general eligibility requirements for education loans include:

• Citizenship: The applicant must typically be an Indian national 
• Age: Generally between 16 and 35 years, though this can vary by bank 
• Admission: Students must have secured admission to a recognized institution in India or abroad .
• Academic Performance: Some banks may require a minimum percentage in previous academic qualifications .
• Co-applicant: A co-applicant (parent or guardian) is often mandatory, especially for full-time programs .

Benefits of Education Loans

Education loans offer several significant benefits:

• Comprehensive Coverage: They can cover a wide array of expenses beyond just tuition fees, including hostel fees, examination fees, the cost of books and equipment, travel expenses (for studying abroad), and even caution deposits .
• Flexible Repayment: Most loans offer a moratorium period, allowing students to defer repayment until after their course completion, typically six months to one year after securing employment . The repayment tenure can be as long as 15 years .
• Tax Benefits: Under Section 80E of the Income Tax Act, the interest paid on education loans is eligible for tax deductions for up to eight years, providing significant financial relief .
• Lower Interest Rates: Education loan interest rates are generally lower compared to other unsecured loans ^.Some banks also offer concessional rates for female students .
• Credit Score Building: Timely repayment of an education loan can help students build a positive credit history, which is beneficial for future loan applications .

 

 

Growproin facilitates international education by guiding students through the complex process of studying abroad, including assistance with education loans. After students complete a querying form on Growproin's platform, they are automatically redirected to a page where they can independently explore courses offered by various foreign universities. This empowerment allows students to make informed decisions about their overseas education options, aligning their academic aspirations with suitable programs and institutions worldwide. Growproin's platform streamlines the initial exploration phase, providing a direct pathway to comprehensive course information from diverse universities, thus simplifying the often overwhelming task of finding the right international study program.