If you plan to fund your higher studies abroad with the help of an education loan then you must have surely wondered about the expenses which are covered by abroad education loan schemes. A lot of students who wish to study abroad rarely have the right idea about the nature of expenses covered by an education loan. This article aims to elaborate on the same topic.

Every episode of the Loanflix web series gave in-depth information about the various education loan details. Loanflix Inshorts is a miniature version of the same. The episodes of Loanflix Inshorts focus on the lesser-known aspects of the education loan process, one among which is the topic of discussion in this article. You may watch the first episode of Loanflix Inshorts below.

Funding their higher education is one of the major concerns of most students from India who wish to study abroad. An education loan ensures that all the financial requirements of the abroad education loan process are fulfilled within the stipulated time frame. When it comes to the funding of higher education abroad, the major subject of discussion for most students is regarding the expenses covered by an education loan in India for study abroad. The information provided in this article is applicable to both secured education loans as well as unsecured education loans in India to study abroad.

Expenses for an education loan of a Typical Course Abroad

A common myth is that an education loan does not cover all of the expenditures that students are expected to spend while studying abroad. This, however, is not true, any education loan, be it secured education loans from government banks or unsecured education loans from private lenders, cater for the following list of education loan expenses that are crucial to the education process.

• Tuition Fees

  The tuition fees quoted by universities abroad constitute one of the two major elements of both the types of education loans in India for study abroad. The aim of an education loan in India for study abroad is to help students pay their tuition fees. All abroad education loans in India cover tuition fees. Hence, while deciding on the total education loan amount, tuition fees should be your number one priority.

• Living Expenses

  A lot of factors can be included in this term. Living expenses of a student majorly comprise their accommodation cost, food, and expenses related to other day-to-day activities such as transportation from your home to the university, caution money deposit for accommodation, etc. While calculating your total expenses for the course abroad, it is important to include your living expenses.

• Health Insurance

  A lot of universities abroad require international students to purchase health insurance. Expenses for an education loan in India for study abroad cover this particular expense as it is one of the requirements of studying abroad for a lot of students. Hence, health insurance also can be considered in your education loan details while applying for one.

• Travel Tickets

  Flight tickets to the destination of your choice is another major expenses covered by an education loan in the abroad education loan process. This component can also be included in the education loan amount while quoting the same to your bank.

• Study Aid

  If the offer letter from your university abroad mentions that you pay for field trips and other miscellaneous activities in the duration of your course, this can also be added to the education loan details. Apart from that, students can also mention the cost of items such as books, laptops, and other study materials in their total expenses while applying for both types of education loans in India.

Important points to note before declaring expenses to the bank for an Education Loan

Although expenses for an education loan cover all the apparatus which are likely to be incurred during the course of higher education abroad, it is still possible that some of you may forget to include all of them while submitting the final list of expenses to your respective banks. Hence, it is very important that you take note of the exact number of expenses before applying for an education loan in India to study abroad.

For example, if you forgot to include your flight ticket cost in the estimated list of expenses to be covered by your abroad education loan, then it is highly possible that you will not be able to apply for a reimbursement of the same after having taken your education loan disbursement. If you approach your bank with this concern of refunding your flight tickets after having taken your first disbursement, they can rightly deny you the same. Hence, it is extremely important to have a clear understanding of the exact expenses and make a list of the same before applying for an education loan in India for study abroad.

When students approach Government banks or private lenders asking about the list of abroad education loan expenses, it is highly likely that they will not be able to give you a detailed explanation of the education loan details related to the same. 

This is where the services of WeMakeScholars come into the picture. The financial team of WeMakeScholars tries to understand every student’s basic financial requirements before suggesting education loan options. So, if you are wondering about how to get an education loan easily, request a callback with our team and let us help you in clearing any confusion surrounding your abroad education loan process. They have a good knowledge of how education loans work in India. 

A lot of students are often misguided about the education loan process by their respective bank officials. WeMakeScholars bridges the gap between banks and students by providing the correct guidance and information to students.