An aviation course or a course to get a commercial pilot licence (CPL) is not a cheap affair. Hence, a lot of students tend to opt for an education loan for aviation course. There are very few banks, especially government banks which provide an education loan for aviation course abroad. Finding the appropriate lender who offers an education loan for aviation course abroad can be a tedious and frustrating process if you do not apply for one through the right source. 

After having received multiple requests for an education loan for aviation course, the WeMakeScholars team has worked very hard to help such students get an abroad education loan to fund their CPL program abroad. This article will educate you about the various ways in which it is possible for candidates to get an abroad education loan for an aviation course. The latest episode of Loanflix below will give you an all-inclusive description of the same.

Study abroad education loan can be bifurcated into two different types based on the requirement of collateral. These loans are divided into secured loans and unsecured education loans.

Types of Study Abroad Education Loan for Aviation Course

By now, you must be well aware that secured education loan in India is mainly given on the basis of collateral by government banks. The interest rates of these loans are much lower as compared to those offered by private banks and NBFCs. Also, the education loan amount limit is much higher as compared to unsecured education loans. A typical aviation course abroad can invite expenses of above Rs.80 to Rs.90 Lakhs. Since it is possible to get secured education loans of up to Rs.1.5 Cr based on the value of collateral, it fulfils the financial requirement of an aviation course and hence, it is considered to be one of the best ways of funding an aviation course abroad.

Unsecured education loans are basically education loans that do not need any collateral security. These loans are mainly provided by private financial organizations called NBFCs (Non-Banking Finance Companies) as well as private banks.

Nationalized banks provide unsecured education loans of up to INR 7.5 Lakhs. In order to secure a higher unsecured education loan amount, students need to apply with NBFCs and other private banks.

However, as mentioned in the previous paragraph, the education loan amount limits of secured education loans provided by government banks are much higher than those offered by NBFCs. When it comes to unsecured education loans, due to the absence of collateral, NBFCs have set certain eligibility criteria for candidates. These criteria are slightly more stringent in comparison to those set by government banks. The following paragraphs will give you a detailed understanding of NBFCs’ approach towards an education loan for aviation program. 

Read about How does CIBIL score affect your education loan?

Education Loan For Aviation Program: Secured Education Loans

One of the biggest highlights of applying for an education loan with any of the government banks is that candidates are able to secure an education loan amount of up to Rs.1.5 Cr. which is sufficient to pursue an aviation course abroad. The only reason why many students do not prefer secured loans is the absence of collateral security. 

Another major point to be focussed on are the low interest rates offered by government banks for abroad education loans. For e.g. SBI, one of the most prominent government banks functioning in India, offers an education loan for aviation program at 9.70% for male candidates and 9.20% for female candidates.

These rates have been calculated after considering the 0.5% decrease in interest rates which can be availed by students on purchasing the Rinn Raksha loan insurance scheme of the SBI.

There are many other benefits of borrowing an education loan for CPL courses from government banks. One of them is the flexibility of beginning the education loan repayment after the entire course has ended and six months post that. This is called a moratorium period in banks’ terms. This benefit of a payment-free moratorium period is only applicable to education loans borrowed from government banks.

Another benefit of a government bank education loan is that eligible applicants get to enjoy the benefits of the various education loan interest subsidy schemes introduced by the government of India. The provisions of these schemes are applicable only on education loans of upto INR 20 Lakhs. Under the subsidy schemes, the education loan interest which is accrued during the moratorium period is waived off. Candidates are required to repay the EMIs in the regular way after their moratorium period gets over.

One of the biggest hurdles of getting a government bank education loan in India for CPL courses is convincing the bank officials for the same. As most of the education loan schemes are specifically designed by keeping in mind only the mainstream courses such as Masters degree programs in the STEM and management fields, the knowledge base of these officials is restricted to the same.

When you apply for an education loan for aviation course through WeMakeScholars, our financial officers, due to their knowledge about the education loan process and efficiency, convince these officials to process such education loans without a lot of efforts. Due to this factor, convincing their respective bank official to process education loans becomes a hassle-free process for our students. 

If you are facing similar issues in getting an abroad education loan for aviation course, do contact our team today to avail our services and also get your loan sanctioned within the right time.

Now, if you are hesitating to apply for a government bank education loan because you do not possess collateral of sufficient value for the same, there are alternative options of applying to private banks like the ICICI bank, Axis bank, etc. Although the abroad education loan interest rates charged by these banks is slightly on the higher end, you can rest be assured to get funding for your course abroad without any hurdles.

Education Loan For Aviation Program: Unsecured Education Loans

If you are planning to borrow an unsecured education loan for CPL course abroad due to the absence of collateral, here are a few things that you need to keep in mind before proceeding for the same. Due to the absence of collateral in the unsecured education loan process, the eligibility criteria and other policies which are applicable to such loans are slightly more stringent in NBFCs than those for government bank education loans. Some of the basic criteria which a candidate’s profile may have to meet in order to borrow an education loan without collateral are as follows:

1. Nature of the Course and Ranking of University/Institute: Most unsecured education loan schemes are designed by keeping in mind the financial requirements of students who wish to pursue full-time, regular courses like the Bachelors, Masters and Management degree programs in mainstream field belonging to the STEM and Management studies category. Hence, when loan applicants approach NBFCs for an unsecured education loan for aviation course, most of them find it difficult to secure such loans. Again, in such cases, when the course is not supported by the respective NBFC, the next important factor which they take into account is the co-applicant’s financial status.
2. Criteria for co-applicants: One major reason given by most NBFCs before rejecting an unsecured education loan application is that the co-applicants financial records do not meet the requirements set by them.

In the case of aviation courses, the assurance of the loan applicant getting a job after the course is considered to be somewhat less by NBFCs. Hence, they focus more on the financial status of their co-applicants. Individuals who are named as co-applicants are required to have a stable income of close INR 7 to INR 8 Lakhs per annum in order to qualify for an education loan without collateral.

Also, they will be required to maintain a CIBIL score of 750 and above to successfully get an education loan without collateral. Co-applicants are also required to submit their salary slips (for salaried professionals) and bank account as well as profit/loss statements (for self-employed co-applicants) of the previous six months for securing an education loan without collateral. Another important document to be submitted is the proof of ITR filing of the previous two years. Without these, it is almost next to impossible to get a student loan for aviation program from NBFCs.

The above-mentioned criteria which are set by all prominent NBFCs in India are often not known to a lot of loan applicants seeking a student loan for aviation program. The only highlight of getting a student loan for aviation program is what attracts a lot of such candidates to NBFCs. However, if you have exhausted all the sources of getting an education loan from other sources such as government banks as well as private banks, do get in touch with the WeMakeScholars financial team before directly approaching an NBFC. Our team will try its level best to get the best education loan scheme to suit your financial preferences.

Read more about Education Loan Repayment: Process- Steps to know

When To Apply For An Abroad Education Loan For Aviation Course Abroad? 

Most episodes featured in the Loanflix web-series give ample information about the typical education loan application procedure. The financial team of WeMakeScholars recommends all its students to apply for an education loan at least 1.5 months before they need funds to fulfil all the preconditions for a typical CPL course abroad.

All secured loan applications which are submitted by the WeMakeScholars team to government banks do not take more than 18-20 days to be processed. Unsecured education loans from NBFCs are processed within a week’s time due to the lesser amount of paperwork involved in the process. 

If you have directly applied for an education loan for aviation course, then you may expect your government bank education loan to be sanctioned way later, i.e. within 1 month or so. Hence, the clever thing to do in such scenarios would be to apply through WeMakeScholars.

How To Apply For A Student Loan For Aviation Program?

With the rising wave of digitization, a lot of government banks have now made it easier for loan applicants to get an education loan online. All government banks have separate digital platforms through which students can easily apply for secured education loans. For example, getting an education loan from SBI, one of the biggest lenders of education loans in India, has become easier with the help of the SBI Digital team. Similarly, applying for unsecured education loans is also a quick and simple process. For any further guidance regarding the application procedure of education loans, do watch all the previous episodes of the Loanflix web-series.

Education Loan Repayment Procedure 

The loan repayment procedure of a typical secured education loan in India is more or less similar. Most of them grant a repayment tenure of 15 years to all the loan applicants. In addition to it, students to get to avail a payment-free moratorium period. The total repayment period granted by government banks does not include the moratorium period. NBFCs, on the other hand, grant a maximum of 10 years to all loan applicants. This time period includes the course duration. The 29th episode of Loanflix covers this topic in detail, so make sure that you watch the episode before beginning your education loan process. 

An education loan process may seem very overwhelming if you do not possess the right kind of information. The financial officers of WeMakeScholars strive their level best to provide the students with some of the best schemes offered by government banks, NBFCs, as well as private banks in India. Request a callback if you are seeking an education loan for aviation course abroad, without a lot of hurdles.

Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it is free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, China, France among others