Education Loan for BBA Abroad 2024

Education Loan to Study BBA Abroad

First things first, it is important to understand different loan parameters related to education loan for BBA abroad:

• Loan Amount: You can get secured loans up to INR 1.5 Crore and unsecured loans up to INR 1 Crore. Lenders may offer a higher amount, depending on the need and the applicant’s or co-applicants profile.
• Expenses Covered: Generally, study costs (Admission fee, tuition fee, computer or laptop purchase, the price for lab/library), living expenses (Hostel or caution fee, the cost of accommodation), and other expenses (Insurance or other miscellaneous expenses) are covered. 
• Moratorium Period: Most lenders give a moratorium period course duration plus 12 months.
• Repayment Tenure: Generally it is 15 years.
• Processing Fees: In most of the cases, it is around INR 10,000 plus applicable taxes.

Read More – IDFC FIRST Bank EMI Payment for Education Loans

Types of Education Loan for BBA Abroad

Understanding the different types of education loans is crucial to choosing the one that best suits your needs. The primary types of education loan for bba abroad available are:

Secured Education Loans	These loans require collateral, such as property, fixed deposits, or other assets.Secured loans generally offer lower interest rates and higher loan amounts.They are ideal for students who have access to assets that can be pledged as collateral.
Unsecured Education Loans	These loans do not require any collateral.They often come with higher interest rates and may have a cap on the loan amount.Unsecured loans are suitable for students who do not have assets to pledge but have a strong academic record and admission to a reputed institution.

Eligibility Criteria for Education Loans

Different lenders have varying eligibility criteria, but some common factors include:

• Academic Performance: A strong academic record increases the chances of loan approval. Lenders often look at your grades and test scores to assess your ability to complete the program successfully.
• Admission Confirmation: Having a confirmed admission from a recognized university abroad is usually a prerequisite for obtaining an education loan. The course should be full-time and accredited by the respective educational authorities.
• Co-applicant: Most lenders require a co-applicant, such as a parent or guardian, who will share the responsibility of repaying the loan if the student defaults. The co-applicant’s income and credit history are often considered during the loan approval process.
• Collateral: For secured loans, the type and value of the collateral play a significant role in the approval process. Properties, fixed deposits, or other financial assets can be pledged as collateral.
• Repayment Capacity: Lenders assess the repayment capacity of both the student and the co-applicant. This includes evaluating the co-applicant’s income, job stability, and credit score.

Read More – ICICI Student Forex Card: Features, Benefits, Rates

Documents Required for Education Loan 

When applying for an education loan for bba abroad, the following documents are typically required:

• Loan Application Form: Duly filled application form provided by the lender.
• Admission Letter: Proof of admission from the university.
• Academic Records: Certificates and mark sheets from previous education.
• Identity Proof: Passport, Aadhar card, or other government-issued ID.
• Address Proof: Utility bills, Aadhar card, or other valid proof of address.
• Income Proof: Salary slips, income tax returns, or bank statements of the co-signer.
• Collateral Documents: In the case of a secured loan, documents related to the collateral.
• Bank Statements: Recent bank statements of both the student and the co-signer.

Top Education Loans Providers in India for Studying Abroad

Several financial institutions, both public and private, offer education loan for BBA abroad. Here are some of the top lenders:

Punjab National Bank	Loan Amount: Up to ₹1 crore Interest Rate: 10.65%  to 11.15% Repayment Tenure: Up to 15 years Moratorium Period: Course duration plus 1 year
ICICI Bank	Loan Amount: Up to ₹1 crore Interest Rate: 10% to 12% Repayment Tenure: Up to 10 years Moratorium Period: Course duration plus 6 months
State Bank of India	Loan Amount: Up to ₹1.5 crore Interest Rate: 9.5% to 11.5% Repayment Tenure: Up to 15 years Moratorium Period: Course duration plus 6 months
Axis Bank	Loan Amount: Up to ₹75 lakhs Interest Rate: 10.5% to 13% Repayment Tenure: Up to 15 years Moratorium Period: Course duration plus 1 year
Bank of Baroda	Loan Amount: Up to ₹80 lakhs Interest Rate: 9% to 10.5% Repayment Tenure: Up to 10 years Moratorium Period: Course duration plus 1 year

 

Student Loan For Abroad Studies from NBFCs 

In addition to the above-mentioned banks, some NBFCs also offer education loans for students who want to study abroad:

HDFC Credila	Loan Amount: Up to 100% of total cost Interest Rate: 11.75% – 13.5% Repayment Tenure: Up to 15 years Moratorium Period: Course duration + 6 months
Avanse	Loan Amount: Up to 100% of total cost Interest Rate: 11.75% – 16.25% Repayment Tenure: Up to 10 years Moratorium Period: Course duration + 6 months
International Student Loan Program (ISLP)	Loan Amount: Varies based on the co-signer’s eligibility Interest Rate: Variable rate based on the U.S. Prime Rate Repayment Tenure: Up to 20 years Moratorium Period: Varies; interest accrues during school period
Global Student Loan Corporation (GSLC)	Loan Amount: Varies based on the co-signer’s eligibility Interest Rate: Variable rate based on the U.S. Prime Rate Repayment Tenure: Up to 20 years Moratorium Period: Varies; interest accrues during school period

Read More – HDFC Credila Education Loan: Process, Steps, Documents

Covered Expenses in a BBA Education Loan

A BBA education loan typically covers a variety of expenses, including:

• Tuition Fees: Full or partial coverage of the university’s tuition fees.
• Living Expenses: Costs for accommodation, food, and daily living expenses.
• Travel Costs: Expenses for travel to and from the host country.
• Books and Study Materials: Costs for textbooks, course materials, and supplies.
• Health Insurance: Coverage for mandatory health insurance in the host country.
• Examination and Library Fees: Costs associated with exams, lab fees, and library usage.
• Laptop/Computer: Expenses for purchasing a laptop or other necessary technology.
• Miscellaneous: Other related costs, such as student activities, project work, and thesis preparation.

It is advisable to check with your lender about the exact expenses that the loan covers.

How to Apply for an Education Loan

To apply for an education loan for bba abroad, follow these steps:

• Research Lenders: Compare different lenders based on interest rates, loan amounts, repayment terms, and eligibility criteria.
• Check Eligibility: Ensure you meet the lender’s criteria, including academic qualifications, admission to a recognized institution, and a suitable co-signer.
• Gather Documents: Collect necessary documents like your admission letter, academic records, ID proof, income proof of the co-signer, and collateral documents (if applying for a secured loan).
• Fill Application: Complete the loan application form, either online or at the lender’s branch, and submit it along with all the required documents.
• Loan Approval: The lender will review your application. If approved, you’ll receive a sanction letter detailing the loan amount and terms.
• Loan Disbursement: After signing the loan agreement, the funds will be disbursed directly to the institution or your account as per the agreed terms.

 

Repayment of a BBA Education Loan

Repayment planning for an education loan for bba abroad involves understanding the loan terms, including the moratorium period and interest rates. Start by budgeting for EMIs based on your post-graduation income. 

Opt for a repayment plan that aligns with your financial situation, such as partial interest payments during the course or a full moratorium. Regularly review your repayment strategy and adjust as needed to ensure timely completion of the loan.

Conclusion

Pursuing a BBA abroad in 2024 is an excellent investment in your future, offering exciting opportunities for personal and professional growth. However, the cost of such an education can be daunting. Education loans provide a practical solution to bridge the financial gap, enabling students to focus on their studies without worrying about immediate financial burdens.

When considering an education loan, it’s crucial to thoroughly research and compare options, understand the terms and conditions, and plan for repayment. By making informed decisions and exploring all available resources, you can successfully finance your BBA abroad and take the first step towards a bright and prosperous career in business.

FAQs Education Loan for BBA Abroad