Sweden Education Loan: Eligibility, Documents & Expenses

Planning to study in Sweden and want to know how to get an education loan? You are at the right place! This guide will help Indian students understand how to finance higher education in Sweden, including tuition fees, living costs, loan eligibility, documents, and repayment rules.

Sweden is known worldwide for its top-class education. The universities in Sweden focus more on group work, independent study, and self-learning. That means less spoon-feeding, more real learning. Good news? Many Swedish universities teach in English, so Indian students feel comfortable.

Many Indian students go to Sweden every year, and with so many scholarships and education loan options, that number keeps growing! With a wide range of education loans and scholarships being available for deserving candidates, the number of Indians travelling to Sweden has doubled over the years. The education system in Sweden recognizes and conducts programs in the English Language, which is a cherry on the cake for Indian students. 

Tuition Fees and Living Costs in Sweden

International students who do not belong to EU/EEA/Nordic countries or Switzerland are required to pay application and tuition fees for pursuing higher education. While the application fee is (Swedish Krona) SEK 900, the tuition fee in Sweden varies, depending on the choice of subject. The average fee for the Master’s program is approximately SEK 129,000/year while the Bachelor programs cost less. Move past the tuition fees, students would also require an average monthly student budget of about SEK 8,000 per month as living expenses. However, living costs are entirely subjective and depend on the area one is staying in and one's personal preferences. 

Non-EU/EEA students who are required to stay longer than a year in Sweden must buy health insurance for the entire duration of their stay and are required to register with the Swedish Tax Agency. Students whose courses demand less than a year are required to check with their university for health insurance coverage. 

If you are a student from India (Non-EU/EEA), you have to pay both application and tuition fees.

Note: Costs can change depending on your city and lifestyle. Also, if your course is more than 12 months, you must buy health insurance and register with the Swedish Tax Agency.

Part-Time Work in Sweden for International Students

In Sweden, international students are allowed to work alongside their studies and there is no official limitation to the number of hours spent working. However, for students to keep their education a priority, they must spend the equivalent of a 40-hour work week reading and working on assignments. Most universities are equipped with career services that help students in finding a part-time job in Sweden during their studies. 

After finishing your degree, you can stay back in Sweden for 6 months to look for a job or start a business. If successful, you can apply for a work permit.

Students also can extend their residence permit by six months to search for a job or start a company and apply for a work permit. Thereafter, the students can enjoy the work-life balance that Sweden is famous for. The birthplace of multi-national companies like IKEA, Volvo, Ericsson, and H&M, Sweden is a perfect career launcher for students. 

Top Universities to Study in Sweden

• KTH Royal Institute of Technology
• Stockholm University
• Chalmers University of Technology
• Kristianstad University
• Lund University
• Jonkoping University
• Linkoping University
• Uppsala University
• University of Gothenburg
• Karolinska Institutet

Eligibility for Education Loan to Study in Sweden

It is important for students to understand the eligibility guidelines for loans and qualify the same, to be able to apply for their education loan for study in Sweden from a bank or financial institution. The eligibility criteria vary for different banks. However, some common factors that are taken into account by all money lending institutions (banks) include: 

• The student is required to have successfully secured admission to a job oriented professional/ technical graduation degree course/ post-graduation degree, and diploma course like MCA, MBA, MS offered by a reputed university. 

• The applicant should be above 18 years of age to be able to apply for an education loan for Sweden. Students under 18 are required to apply for the loan co-jointly with their parents. 

• The student (borrower) is required to be an Indian citizen.

Understanding the Cost of Education in Sweden

Once a student decides to pursue his higher education in Sweden, there would be a lot of factors and services that would cost money. The cost of studying in Sweden would include: 

• Visa Application 

• Tuition Fees 

• Food and Accommodation 

• Health Insurance 

• Books and Stationery 

• Telecommunications 

• Transport 

• Personal Expenses 

• Utilities 

Applying for an Education Loan

Applying for an education loan to study in Sweden has become extremely easy for the borrower today. Students should be closely in touch with their coordinators abroad to determine the expenses they would incur while abroad and apply for an education loan accordingly. With banks introducing lucrative schemes, all-round-the-year borrowers should do thorough research of the market before settling in on their choice. Factors that should determine their preferred bank are 

• The processing fee that would be levied 

• The interest rate offered by the Bank 

• Loan processing duration 

• Expenses covered under the Education Loan 

• Repayment terms and duration

Expenses covered under the Education Loan include

The formalities vary for different banks while applying for an education loan for study in Sweden. However, there are a set of formalities that are identical across the board such as documents that you would require to disclose along with your Loan Application Form. The documents primarily include but not limited to: 

Bank Formalities

While the formalities vary for different banks while applying for an Education Loan, however, there are a set of formalities that are identical across the board such as documents that you would require to disclose along with your Loan Application Form. The documents primarily include but not limited to:

For Student-applicants:

• Proof of Identity (Anyone): PAN/ Passport/ Driver’s License/ Voter ID card
• Proof of Residence/ Address (Anyone): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or a copy of Passport/ Driving License/ Aadhaar Card
• Passport
• Statement of cost of study/ Schedule of expenses
• 2 passport-size photographs
• If any previous loan from other Banks/Lenders, then Loan A/C statement for last 1 year
• Academic Records: 10th Result and 12th Result
• Graduation Result: Semester-wise (if applicable)
• Entrance Exam Result through which admission has been secured (GMAT, GRE, TOEFL, and IELTS)
• Proof of admission: Offer Letter or Admission Letter from the Institution. Conditional admission letter may be considered in case of studies abroad.

For Co-applicants:

• Proof of Identity (Anyone): PAN/ Passport/ Driver’s License/ Voter ID card
• Proof of Residence/ Address (Anyone): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or a copy of Passport/ Driving License/ Aadhaar Card
• If any previous loan from other Banks/Lenders, then Loan A/C statement for last 1 year
• 2 passport-size photographs

For Income Proof for Salaried Co-applicant/ Guarantor:

• Salary Slip or Salary Certificate of last 3 months
• Copy of Form 16 for last 2 years or a copy of IT Returns for the last 2 financial years, acknowledged by IT Dept.
• Bank account statement for the last 6 months (of Salary Account)

For Income Proof for Self-employed Co-applicant/ Guarantor:

• Business address proof (If applicable)
• Certificate of qualification (for C.A/ Doctor and other professionals)
• Bank account statement for last 6 months
• IT returns for last 2 years (if IT payee)
• TDS Certificate (Form 16A, if applicable)

Education Loan Process and Repayment in Sweden

Students traveling to Sweden for higher education can avail a maximum loan amount of INR 20 Lacs. However, higher loan amounts for studying abroad are considered on a case-to-case basis. As mentioned earlier, international students will have the opportunity to work part-time to ease their living and tuition costs abroad. International students can work alongside their studies, and there’s no official limitation to the number of hours spent working. However, for students to keep their education a priority, they must spend the equivalent of a 40-hour work week reading and working on assignments.  Students will also be given the option of staying back for six months to look for a job that corresponds to their area of qualification. 

Students who have applied for an education loan for study in Sweden from a nationalized bank are required to start the repayment process after the completion of the course period and moratorium period (Repayment commences one year after the course completion or six months after securing a job, whichever is earlier). However, students should understand the moratorium time varies for different loan providing institutions. 

Also read:

• Sweden Student Visa Guide
• P. Gopinath's journey to making to the course of his choice at Sweden: Shiksha Success Stories
• MBA in Sweden
• All about Post Study Work Permit in Sweden
• Country Comparison: France, Ireland, Netherlands and Sweden

Get in touch with India’s top-rated loan providers and apply for an education loan through Shiksha Study Abroad.