Source of Financial Aid

source of financial aid

Source of Financial Aid

Source of financial aid and student loans to study abroad? Wondering how are you going to finance your studies abroad.

Are you looking for help finding a financing option that best suits you? We all know that studying abroad is a very extensive in monetary terms.

The cost involves not only the university fees but also the living expenses. When you decide to apply for study abroad, you should pay as much attention to how you will finance your study abroad as to your application.

Nowadays, with more international students applying to countries other than the United States, there is a more flexible attitude towards financial aid to foreign students.

Countries like the United Kingdom, Canada, Australia, and New Zealand do not generally offer scholarships to students; but with loans from your own country, you can study anywhere in the world. Everyone, even students who can afford it, need financial help.

If a foreign student wishes to apply for a student visa, you are required to prove that you have sufficient funds to cover at least first-year tuition fees.

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Different Source of Financial Aid

Types of Financial Aid available to study abroad depend mainly on the country you are applying to. Most US universities offer assistantships, fellowships, and scholarships; depending on the course you are applying to. But for countries other than the US, funding from outside sources will mostly be required.

Financial assistance falls under three categories:

  • Assistantships
  • Scholarships / Scholarships
  • Loans

Take first step towards your Study Abroad Journey


Eligibility: Students are eligible for assistantships based on their merit

Applicable courses:

Undergraduate level (UG): It is relatively more difficult to obtain assistantships at the UG level.

University level: For MS courses, assistantship is the best way to finance your studies. Most universities do not offer financial assistance for an MBA, as students will eventually earn more and be able to repay their loans. However, some business schools may offer merit-based MBA scholarships.

PhD level: All doctoral students will be offered allowance which should cover their living expenses. There is no charge for a doctorate.

Types of Assistantships:

Graduate assistantships:

They are specifically intended for graduate students. Students work with the admissions office or other departmental offices in administrative jobs.

Teaching assistants (TA):

Especially master’s level student assists the teacher in teaching undergraduate students. For instance, The work consists of taking tutorials, conducting laboratory experiments, evaluating exam papers and helping the professor dispel students’ doubts. To obtain a TA position, you must have very good communication skills.

Research assistants (RA):

In this case students assist professors in laboratory work and research projects. Students selected for RA generally have to demonstrate their research and analytical skills through projects and publications.

Tuition waiver:

Students who obtain one do not have to pay tuition fees to the University. However, overhead costs (for the use of University facilities such as the library, computers and health services) will have to be paid.


Eligibility: Universities Abroad provide financial assistance to students with outstanding academic profiles. Scholarship recipients will have to be very successful in their program to renew the scholarship / scholarship the following year.

The amount of the scholarship offered differs according to the student’s profile.

Applicable courses: The scholarship or university scholarship option for financial aid is more available at the graduate level than at the undergraduate level.

Special scholarships for Indian students: Subsequently, Some trusts or organizations offer financial assistance to Indian students who plan to study abroad.

The scholarships awarded by these trusts are very course specific. Contact the institutes mentioned below to confirm if you are eligible for the scholarship program they offer.

Indian organizations:

  • KC Mahindra scholarship
  • Nehru Trust for Cambridge University and Trinity College
  • Singapore International Airlines – Scholarships for young people
  • J N Tata endowment
  • ITC grants
  • Inlaks Foundation
  • Rhodes Scholarship
  • Mariwala Trust
  • Rotary Embassy Scholarships

International organizations:

  • Fulbright Commission
  • The United Nations
  • World Health Organization

As the scholarship options are extremely competitive, several banks offer student loans to study abroad. Generally, if a student obtains an offer of admission from a leading university, the loan can be sanctioned without the requirement of a co-signer based in the country where the university is established.

In other situations, financial institutions and banks require a co-signer based in the country of origin or a co-signer residing in the country where you intend to go.

Student Loans

Student loans are offered on certain terms and certainly on a fixed interest plan. Indian banks offer student loans to study abroad on a confirmed admission to a foreign university for full-time courses (that is, the loans are not offered for correspondence courses).

Banks will take into account a student’s educational background and only offer the loan if they will be satisfied. All of these conditions for financing education generally apply, but in the end, each bank follows its own scheme.

However, to qualify for a student loan of any amount, meeting the bank’s eligibility criteria is a prerequisite. Applicants must be eligible to get a student loan from any Indian bank if:

  • You are an Indian national
  • Student has obtained admission to professional/technical courses through the entrance test/selection process
  • You have obtained your admission to a foreign university/institution
    Take a look at other important points to consider that the overall education loan program involves:


  • Up to INR 4 Lakhs, zero for studies in India and abroad
  • Above the 4 Lakhs INR, 5% for internal studies and 15% for studies abroad

Indian banks have the following security/guarantee requirements for providing student loans. However, requirements differ from bank to bank

  • Loan up to INR 4 Lakhs, no collateral guarantee
  • For loan greater than 4 INR Lakhs and up to 7.5 INR Lakhs Security in the form of a satisfactory third-party guarantee
  • Loan greater than 7.5 INR Lakhs (a) Guarantee of an appropriate value.
    (b) Co-obligation of parents/guardians/third parties with the allocation of the student’s future income for the payment of deposits

Interest rate:
The interest rate is 10.75% up to 4 INR Lakhs and it does not exceed the prime rates (PLR). For a loan greater than 4 INR Lakhs, the interest rate is 11.75% and it will not exceed PLR more than 1%. However, the interest rate is subject to change depending on the specifications of RBI or the bank concerned.

Refund leave / Moratorium:
Loans are repayable in 5 to 7 years. The repayment of capital and interest will begin one year after the end of the course or six months after obtaining employment, whichever comes first. Interest will be charged on a simple basis during the study / moratorium period.

At the start of the reimbursement, the accrued interest is added to the principal amount and to the equivalent monthly installments (EMI) fixed on the total amount in arrears. After the reimbursement begins, the benefit of simple interest would be removed.

Processing fee:
Most Indian banks do not charge any processing fees or upfront fees. The State Bank of India accepts a deposit of INR 5,000 for a study loan for study abroad, which is adjusted in the margin.

In the normal course, when evaluating the loan, your prospect of future income is examined. However, if necessary, the resources of your parent/guardian can also be taken into account to assess the repayment capacity. The loan is sanctioned as per delegation of powers preferably by the Branch nearest to the place of domicile.

No application for an educational loan received is rejected without the concurrence of the next higher authority. The loan is disbursed in stages according to demand directly to institutions/sellers of books/equipment/instruments as far as possible.

Certification of ability:
If you are going to study abroad, some foreign universities require that you submit a certificate from your bankers regarding the solvency / financial capacity of the sponsors in order to guarantee that your sponsors are able to meet the expenses until the end of the studies.

Therefore, branches can also issue the certificate of competence. For this, financial and other documents will be obtained from you, if necessary.

The documents
You must keep the following documents before applying for a student loan:

  • Mark the sheets of the last qualification exam for school and higher studies in India.
  • Proof of admission to the course
  • Calendar of expenses for the course
  • Copies of a letter confirming the scholarship
  • Copies of the foreign exchange permit, if applicable
  • Two passport-size photographs
  • Borrower’s last six months bank account statement
  • Income tax fixing order dated less than two years ago
  • A brief statement of the borrower’s assets and liabilities
  • If you are not an existing bank customer, you will need to establish your identity and provide proof of residence.

Finally, you need to find the right bank with the right educational loan program suited to your needs. The parameters for weighing the alternatives are numerous; as in, if the bank provides a loan for the course you choose and if so, to what extent, the margin and security requirements, the interest rate.

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