Data shows that every year the Indian financial industry lends around Rs 7 lakh to Rs 15 lakh for students to study abroad and 65 percent of the loans are lent on collateral
There comes a time when many students want to leave home and pursue academic excellence in global destinations. Parents harbour big dreams too, and they are happy to support their children in their academic endeavours to study abroad. However, the million-dollar question for every parent and student is how to apply for a study abroad loan. Their ambitions are frequently dashed because they lack the necessary funds.
Each year, around 200k students, on an average, leave India to study abroad. As of March 2022, around 133K students left India, as of March 2022, to study in the UK, USA, and Canada, according to the Bureau of Immigration. In 2021, around 445K students went abroad. Only 259K students went abroad in 2020. If you think of it, there are more of your friends studying abroad than you can imagine. At Creditap, we support students to turn their study abroad dreams into reality in three simple steps.
How do we do it?
We are a platform that has partnered with banks (public and private) and NBFCs to finance your study abroad program. The Creditap app does this for you in three simple steps. Come select the study abroad loan and find the category that best suits you. Once you upload your documents and finish your KYC, we ensure that the financial institution will disburse the loan in a matter of a few days, which is faster than the three weeks that you would take if you walked into the average bank.
Before we walk you through our app, we want to tell you why many students get loans on time.
The difficulty in getting loans
Most students do not realise that applying for a study abroad loan can be cumbersome. The reason is that the documentation process in banks can be long. At least 14 documents are to be provided to a bank.
- KYC documents
- Bank Statement / Pass Book of last 6 months
- guarantor form
- Copy of admission letter from the institute along with fee schedule
- Mark sheets and passing certificates
- Demand a letter from a college or university
- Loan agreement signed by the applicant and co-applicants
- Sanction letter signed by the applicant and co-applicants
- Disbursement request form signed by the applicant and co-applicants
- Receipts of margin money paid to the college or university along with a bank statement reflecting the transaction
- Documents for collateral security (if applicable)
- Form A2 signed by applicant or co-applicants in case of overseas institute
- Demand letter from a college or university
- Disbursement request form signed by the applicant and co-applicants
- Receipts of margin money paid to the college/university along with a bank statement reflecting the transaction
- Exam progress report, marksheet, bonafide certificate (any one)
Many students give up because they have no guidance to help them through these processes mentioned above. Very often, they end up with agents who promise them a solution, but who take their consulting fee and leave the students in the lurch.
Several times, a slight drop in the credit score of their parents may not enable them to study abroad. It is very disappointing when a student finds out that their dreams are so close yet so far away.
Parents also don’t know that there are several funding platforms that provide different loan products for study abroad programs. Creditap can guide you through the loan application process and not leave you confused about your chances of not getting a loan guaranteed.
Collateral and Non-Collateral loans
Students and parents must remember that, depending on your credit scores and KYC, a majority of the loans (processed through nationalised banks) are collateral-based.
According to data, the Indian financial industry lends approximately Rs 7 lakh to Rs 15 lakh (up to Rs 75 L – 1.5 cr) for students to study abroad each year, with 65 percent of the loans lent on collateral.
However, students who have scored well and are applying for Science, Technology, Engineering and Mathematics (STEM) courses will get 100 percent collateral free loans. (Unsecured loan option is available for almost all the countries and courses – its not limited to only USA STEM courses)
What are you waiting for? Just download our app or visit our website and go study abroad.
