A lot of candidates who seek a study abroad education loan to aid their Ph.D. fellowships, as well as Post Doctoral courses find it difficult to come across lenders who agree to provide one. Due to the unpredictable duration of such courses, very few lenders prefer lending a study abroad education loan to students who wish to pursue a long-term course like Ph.D. or Post Doctoral fellowship in universities abroad. This article will highlight the education loan process of getting abroad education loans for Ph.D. students. The 38th episode of Loanflix elaborates on this very same topic. Do make it a point to watch this episode below.

Before beginning the education loan process, it is important to have sufficient knowledge about the different types of lenders who lend a study abroad education loan in India. 

Education Loan For PhD Abroad Courses: Types of Education Loan Lenders

Education loans in India are divided into two different types on the basis of the requirement of collateral. The loans are categorized as secured education loans which are provided by all the prominent government banks in India and unsecured education loans which are provided by privately run financial organizations called NBFCs (Non-Banking Finance Companies).

Candidates are required to pledge collateral of some form in order to borrow secured education loans of above INR 7.5 Lakhs to support their higher studies abroad, from prominent government banks in India. These loans are called secured education loans.

The other type of education loan is an unsecured education loan which is provided by private banks, as well as financial companies, called NBFCs (Non-Banking Finance Companies). These loans do not require any collateral and are hence called unsecured education loans.

Unsecured Study Abroad Education Loans

As mentioned in the previous paragraph, education loan in India for study abroad without collateral is granted by privately run organizations called NBFCs (Non-Banking Finance Companies). This particular type of study abroad education loan is provided, solely on the basis of a candidate’s profile. Candidates who can manage to get a study abroad education loan for their Ph.D. courses, get a maximum loan amount of INR 40 Lakhs for the entire duration of their Ph.D.

However, the chances of getting an unsecured study abroad education loan for PhD abroad are very weak, even if you happen to meet all the eligibility criteria set by these NBFCs, due to the following two reasons.

1. Duration of the fellowship/Ph.D.: It is common knowledge that the general duration of PhD and Post-Doctoral courses is a big mystery. The entire course duration cannot be limited to a particular number of years, as a PhD involves a very long duration of research. This duration may last anywhere between two years to ten years. All NBFCs provide an education loan in India for study abroad without collateral under the assumption that candidates would be able to start their education loan repayment within two years of borrowing the education loan. Hence, this is one of the common reasons why NBFCs are not very keen on processing PhD student loans and student loans for doctorate degree.
2. Age of the candidate: In order to secure an education loan in India for study abroad without collateral, most students approach NBFCs. Especially when the required loan amount exceeds INR 20 Lakhs. 

However, most of the NBFCs which function in India have set certain age limits for candidates in order to be eligible for unsecured education loans. Since most loan applicants who plan to fund their PhD courses abroad mostly cross the age of thirty at the time of applying, a lot of NBFCs are not very keen on lending a study abroad education loan for PhD in India. 

However, despite the above obstacles, the financial team of WeMakeScholars has been successful at helping candidates get an unsecured education to fund their PhD courses abroad. So, if you plan on borrowing an education loan to support your PhD course abroad, do get in touch with WeMakeScholars at the earliest to undergo a hassle-free education loan process.

Now that you have understood how unsecured education loans for PhD courses work, let us move on to the primary choice of a majority of loan applicants in India; Secured education loans.

Read More about Education loan for abroad: Public banks Vs. Private Banks/NBFCs

A Preview of the Secured Education Loan Process for Ph.D. and Post-Doctoral Courses

A study abroad education loan from government banks in India is the primary choice of most candidates who wish to pursue their Ph.D. courses abroad. Government banks have some of the most student-friendly policies in place when it comes to study abroad education loans. Some of the major benefits of borrowing secured education loans from government banks are as follows:

1. Government banks grant an education loan tenure of up to 15 years to those in need.
2. The benefit of a payment-free moratorium period can only be enjoyed by candidates who have borrowed a study abroad education loan from government banks. This period lasts for the entire course duration, plus six months post that.
3. The maximum education loan granted to Ph.D. candidates is INR 2.5 Cr. This amount is more than sufficient for candidates to cover their course expenses, as well as the living expenses. All the expenses that are crucial to the completion of the course are covered under government bank education loans.  This depends on the tangible collateral pledged by loan applicants for the study abroad education loan. 
4. The education loan for abroad studies interest rates offered by most government banks for secured education loans is way lower as compared to the unsecured education loan interest rates. A typical government bank education loan for abroad studies interest rate varies between 9% and 10%. 
5. Government banks have listed very few eligibility criteria for co-applicants. Hence, candidates find it easier to get a study abroad education loan for PhD abroad from government banks than from NBFCs.

However, despite the various positive points of government bank education loans, candidates often tend to opt for unsecured education loans mainly due to two particular reasons.

1. The requirement of collateral: In order to secure study abroad education loans exceeding INR 7.5 Lakhs, candidates are required to pledge collateral. Loan applicants who do not possess any valuable collateral often tend to go for unsecured education loans without having made a thorough study of the pros and cons of borrowing a study abroad education loan from NBFCs and end up regretting their decisions later, at the time of their education loan repayment. 
2. For those of you who are unaware, government banks do accept assets which are possessed by a third-party (someone other than your parents and immediate family members), as collateral security against study abroad education loans. If your loan officer is denying you an education loan for PhD in India due to lack of collateral, do get in touch with the financial team of WeMakeScholars for assistance.
3. Longer Processing Time: Another obstacle which many students face is the long and tedious study abroad education loan processing time taken by government banks. As a result, a lot of students miss out on important deadlines in the abroad education process. One of the major reasons behind this is that most bank officials who are in charge of sanctioning abroad education loan applications are greatly unaware of the financial deadlines that students need to meet before moving ahead in the abroad education loan process.

The financial team of WeMakeScholars has been at the core of many policy changes made by these banks with respect to the faster processing of abroad education loans. Hence, if you share a similar fear of not getting your loan sanctioned within a stipulated time period, do get in touch with the financial team of WeMakeScholars.

When To Apply For An Abroad Education Loan for PhD and Post-Doctoral  Course Abroad? 

Most of the 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 fulfill all the preconditions for a typical PhD student loans and student loans for doctorate degree.  

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 PhD and Post-Doctoral 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 An Education Loan In India For Study Abroad?

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.

Also Read About Education Loan Eligibility in India (The complete guide)

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 PhD and Post-Doctoral courses 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’s 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