THE EDUCATION LOAN GUIDE
Before you borrow,
understand the plan.
Plan your Study Abroad costs. Understand the Loan. Keep the right papers ready. Read with your family and note what you need to ask.
Start with the full cost
College fees are only one part of your budget. Use the college's current fee list and your own estimates.
- Course and exam fees, books and equipment
- Rent, food and local travel for the full course
- For Study Abroad: flights, visa costs, insurance and currency changes
- Subtract confirmed scholarships and money your family can safely use. Do not count scholarships you have not received.
- Check Loan costs too: interest, processing fees and any security-related charges. Ask for the full list in writing.
ASK THE BANK
Which study costs will the Loan cover, and what must we pay ourselves?
Understand collateral
Security, also called collateral, is an asset a bank or finance company may ask you to provide. It can be at risk if you cannot repay.
- Ask if security is needed and how it will be valued.
- Understand whose asset is being offered and what happens if the Loan is not repaid.
- Never assume a Loan is approved until you have a written offer and understand its conditions.
ASK THE BANK
Do we need collateral, and what costs and risks come with it?
Know the co-applicant's role
A co-applicant is a person who applies with the student. A bank or finance company may ask a parent or another person to take this role.
- Ask who can be a co-applicant and what income proof the bank or finance company needs.
- Understand the co-applicant's repayment responsibilities before signing.
- Talk together about how payments would be managed if the student cannot pay.
ASK THE BANK
What will the co-applicant be responsible for under this agreement?
Plan for repayment, not just admission
Borrow only after you understand how your family will manage the repayments.
- Ask when interest starts and whether it builds up while you study.
- Ask when monthly payments start and what each payment will be.
- Compare the total repayment amount, fees and rules for paying early.
- Plan for a delay in finding work. A future salary is not guaranteed.
ASK THE BANK
When do interest and monthly payments start, and what is the total repayment?
Keep a document checklist
The exact list comes from your bank or finance company. Prepare copies, but do not upload any documents to this website.
- Ask the bank or finance company for a secure way to share papers. Keep your own copies and a record of what you send.
For the student
- Identity and address proof, passport
- Academic records and admission letter, if available
- Course fee schedule and study-cost estimate
For the co-applicant
- Identity and address proof
- Income proof, such as salary slips or income tax returns
- Bank statements; property papers if security is required
ASK THE BANK
Which papers do the student and co-applicant need, and how should we share them?
Your questions, answered.
What can an Education Loan cover?
It may cover course fees and some other study costs. Each bank or finance company has its own rules. Ask for a written list of covered costs before you decide.
Do I need property to get a Loan?
Some Loans need security, such as property. Others may not. This depends on the bank or finance company, the course, the amount and your family's finances. A Loan without property is not a guaranteed approval.
Can a parent apply with the student?
A bank or finance company may ask a parent or another person to apply with you. This person is called a co-applicant. Ask what they will be responsible for, including repayment.
When do repayments start?
The start date depends on your Loan agreement. Some banks and finance companies allow a waiting period, but interest may still build up. Ask for a repayment schedule and the total amount you will pay.
Can I start before I have an admission offer?
Yes, you can discuss your plans and questions with our team. A bank or finance company may need an admission offer before assessing or approving your Loan. This website does not submit a Loan application; contact us to discuss the next steps.
Who decides whether my Loan is approved?
The bank or finance company decides approval, rates and terms after reviewing your application. A finance company is also called a non-banking financial company (NBFC). Fund2Education helps with guidance, preparation and communication with the bank or finance company. We cannot guarantee an approval.