General
In the last few years, the number of students looking to study abroad has increased manifold. Though the major attraction for studying abroad is a better job scenario, there are many other reasons that encourage students to explore overseas education options. An overseas experience helps in your personal enrichment and development. It helps you develop cross-cultural skills and knowledge needed to enhance your global competitiveness.
The list of benefits of studying abroad is endless, but before you plan to enrich yourself with an overseas experience, you need to plan your study abroad options in detail and well in advance. Let us look at some of the key aspects that will help you to plan and make most of your study abroad program.
Initial Consideration
What to study and where to study are perhaps the most difficult questions to answer. It is the most critical decision that will shape your career. You need to research and shortlist various study options available to you. The following questions will help you to research and analyze information and take a better decision.
Is the program going to add substantial value to your career?
Do you have the fundamental aptitude for the course?
Is the course you have chosen well recognized by the industry?
What are the chances of getting a good job in India or abroad after you get your certificates?
Does your choice of study program allow you to get a job in the country you plan to study?
Is the program offered in English?
It is a good idea to do some basic research on your own, like talking to your peers, attending study abroad fairs, interacting with college representatives and alumni, so that yours is a well thought out decision.
After you decide on the right program, you can go ahead and explore the countries that offer quality education in your area of interest. If needed, take professional help; speak to the consultants and counselors , experts in study abroad programs. Some questions that can help you decide are given below:
- Is the program offered by your choice of institutions is accredited or recognized globally?
- Does the cost of study match your budget?
- Does the college allow you to work part time to fund your education?
- Does the country you plan to go allow you to work there after completing the course?
- What is the duration of the course?
- What are the living expenses and cost of study?
- Research and collect as much information as you can. Speak to alumni of the program or institution, take professional counseling, and then decide your study programme and institution.
Geting Admission in foreign Univercities
Once you decide on the study program and the country you can go ahead and apply to the institutions that offer your preferred education program. Getting admission in a foreign university or institution is not an easy job, but you can make it easier if you plan in advance and focus on the key aspects of the general admission requirements and procedures. The general admission requirements to study abroad are: - A good academic record
- Your scores in standardized tests such as GMAT, GRE, SAT, and TOEFL These play a significant role in your selection for a specific programme
- Your statement of purpose and letters of recommendation are important as well. Statement of Purpose is one of the most important components of the application procedure. It comprises your personal details; factors that have defined your career path so far and your aspirations
- Your Grade Point Average (GPA)
- Your work experience and summer work experience
- Degree you intend to work towards Ph.D./MS.
- Personal qualities, motivation, reliability, sincerity, maturity, integrity, communication skills
- The degree of your participation in extracurricular activities
Know about the country
Knowledge about the destination country is always helpful in adjusting to the new environment and culture. During your stay abroad, initially you may be confronted with some difficulties, such as problems in adjusting with new culture and society.
Some of you may also face difficulty in understanding the accent or language, but, if you prepare yourself in advance and learn about the culture and people of the country you can overcome these problems in no time.
You must consider your suitability to the course and colleges and your adaptability to the culture of the country. You should gather as much information as possible about the country and its education system
Be ready to adapt to the change in environment, style of education, language, food and your routine life in the country you plan to study in. Be prepared to adjust to the cultural differences, bouts of homesickness, and the pressure of studies
If you plan to go to a country where English is not commonly spoken, try to learn the native language before you leave. This will help you in adapting to the new culture and environment.
Funding your study
Studying abroad often requires financial assistance for extra expenses such as travel, accommodations and materials. Though studying abroad is comparatively expensive, you can reduce your expenses to an extent. A number of universities and colleges offer financial aid in the form of scholarships, tuition fees waivers and part-time work options.
However scholarships are usually numbered. It is recommended that you start the search for aids early, if you want to seek admission to a program that is not within your budget. Many countries like the UK and Australia allow you to work part time on your study visa. You can work part time to fund your tuition fees.
You can also look out for an education loan for studying abroad . Many public sector banks offer loans up to Rs. 15,00000 for studying abroad.
Education Loan
If you think you cannot manage finance for your education, you can always apply for a loan from banks to fund your degree or diploma. You just need to meet certain minimum requirements.
Education loans are mostly offered by public sector banks but private banks such as HDFC and HSBC also offer education loans. You can get an education loan for study in India or abroad.
Education Loan: Study in India
You can borrow up to Rs 4 Lac without providing any security or margin.
You can get a loan amount of Rs 4 Lacs to Rs 7.5 Lacs against a third-party guarantee. This loan comes with a five percent margin. The loan amount disbursed is 5 % lesser than the sanctioned amount. You need to arrange for the rest of the money. The third-party guarantee can come from any relation, neighbour or friend standing guarantee for the full amount.
Education Loan: Study Abroad
Amount of loan sanctioned may vary but usually Rs 7 Lacs and above are usually sanctioned against fixed deposits, NSC certificates, property worth the loan amount and a margin amount of 15 percent. This loan comes with a five percent margin. The loan amount disbursed is 15 % lesser than the sanctioned amount. You need to arrange for the rest of the money.
Also, if a loan below Rs 4 Lacs comes at x rate of interest, the loan over Rs 4 Lacs is usually charged one percent higher interest that is x+1.
Note: The Reserve Bank of India prescribes the specifics (amount, rate, repayment period) of education loans and the government provides a two per cent subsidy on these loans to the banks.
Documents required for education loan
Mark sheets of the last qualifying examination for school and graduate study
- Proof of admission to the course
- Schedule of expenses for the course
- Copies of the letter confirming scholarship, if any
- Copies of foreign exchange permit, if applicable
- Two passport size photographs
- Statement of borrower's bank account for the last six months
- Income tax assessment order not more than two years old
- Brief statement of the assets and liabilities of the borrower
- Residence proof
Education Loan: Eligibility and Interest Rates
A. Oriental Bank of Commerce
Eligibility for Loan: All Indian nationals who are below 45 years who have secured admission to a recognized course in an approved university are eligible.
Expenses Covered: The loan covers all expenses including tuition, books, airfare, study tours etc. For accommodation the amount is paid to the management of the boarding house.
Loan Upper limit: For students pursuing their education abroad, the loan amount is a 15 Lac. This is subject to a 5% margin, i.e. students have to put in this amount themselves.
Rate of Interest: For a loan of Rs 4 Lac or less, the bank charges an interest of 11.25 percent per annum. For loans above 4 Lac, the rate of interest is 12% per annum.
Repayment Period: The student gets a holiday period for a year after they finish their course or six months after they find a job, following which the loan is to be paid over 84 EMI’s.
Security: Up to Rs 4 Lac-co-obligation of guardian is a must. Up to Rs 7.5 Lac a third party guarantee is also needed. Up to 15 Lac, security/assets equal to 100% loan amount.
B. Syndicate bank
Eligibility for Loan: Any student, who is an Indian national, and a major, or represented by a guardian is eligible for the loan. The bank gives loans for all recognized institutes overseas.
Expenses Covered: The bank provides finance for tuition boarding, books and travel. However, no assistance is provided for capitation fees and coaching.
Loan Upper limit: For overseas education, the maximum loan amount is Rs. 15 Lac with a margin of 5 %i.e. students need to put in that amount themselves
Rate of Interest: To study abroad, the rate of interest is 1.5% - the current PLR (13.25) which means an interest of 11.75%.
Repayment Period: The amount has to be paid back in 5 to 7 years commencing one year after completion of the course or 6 months after securing the job whichever is earlier.
Security: Up to Rs 7.5 Lac, no security required. For over 7.5 Lac, collateral security equal to 100% of the loan amount with suitable margin and a third party guarantee is needed.
C. Bank of Baroda
Eligibility for Loan: The applicant should be a citizen of India and secured admission to the course. No minimum marks required and loans are provided for all recognized courses.
Expenses Covered: The loan covers all expenses incurred during the study period like tuition fees, boarding and lodging, books, study tours, laptops, travel or any other requirement.
Loan Upper limit: For studying abroad, the student gets a maximum loan of Rs 10 Lac for an UG course and 15 Lac for PG education. The margin money in this case is 15%
Rate of Interest: For education loans to study abroad, the rate of interest is Rs 12% for less than 4 Lac and 14% for any loan amount up to a maximum of Rs 15 Lac.
Repayment Period: It needs to be paid a year after the completion of the course or six months after finding a job, whichever is earlier. Then, the loan has to be paid back within a period of five years
Security: Up to Rs 4 Lac no security is required. Between 4-7.5 Lac, a third party guarantee & assignment of future income is needed. Up to 15 Lac, 100% collateral security is mandated
D. State bank of India
Eligibility for Loan: The applicant should be an Indian national and have secured admission into any course that has employable prospects.
Expenses Covered: Expenses covered in the loan include tuition fees, travel, books, computer and even a two wheeler costing up to Rs 50,000.
Loan Upper limit: For studies abroad, the maximum loan amount is Rs 20 Lac and a margin of 15% is required if the loan amount is more than Rs 4 Lac
Rate of Interest: For education loans, the rate of interest is Rs 12.75% for less than 4 Lac and 13.75% for any amount above that.
Repayment Period: Payment starts a year after the completion of the course or six months after finding a job. For a loan of less than 7.5 Lac the student has 5-7 years and for more than that 5-10 years.
Security: No security is required for a loan up to Rs 4 Lac. From 4-7.5 Lac a third party guarantee is required and for 7.5 and above, the bank needs collateral security for the full value of the loan.
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