Education Loan to Study in Finland
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Multiple banks and non-banking financial companies offer education loans to meritorious students who want to study in Finland. The most important condition is to fulfill the eligibility criteria and submit the required documents to the banks. The processing time of a student loan application is not same for every bank.
Finland is well-known for being the top place in the world to spot the Northern Lights, but it is one of the best countries for abroad studies. Its affordable tuition fees, high quality of life, and diverse culture make it an attractive option for overseas education. The biggest challenge for students is to finance higher education abroad. Many government and private banks offer education loans to study in Finland.
These study loans cover tuition fees, application fees, and other expenses. It is important to apply for an education loan after getting approval from any of the universities in Finland. It is an important eligibility for student loan applications. This article will help you understand how to apply for and borrow student loans to study in Finland.
- Importance of Education Loan to Study in Finland
- Eligibility for Education Loan to Study in Finland
- Documents Required for Student Loan
- Education Loan Interest Rates
- How to Apply for Education Loan to Study in Finland?
Importance of Education Loan to Study in Finland
The overall cost of studying in Finland for UG and PG courses is more expensive than in India but affordable than the USA, UK and other developed nations. Banks and NBFCs in India offer Study loans to meritorious students who want to study abroad in selected countries.
Finland is one of them. Such study loans help students to reduce their financial burden and focus on their studies without worrying about financial stress. Here are some benefits of borrowing an education loan for abroad studies:
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- Funding tuition fees and living expenses.
- Flexible repayment options. You can repay the study loan in instalments.
- Avail tax benefits when you start repayment.
- Easy access to high-standard education.
Key Factors to Consider While Choosing an Education Loan
If you have selected Finland for your higher studies, then you may have considered several factors like course, university, job opportunities, and more. Similarly, there are some deciding factors you should consider at the time of selecting an education loan. Here we have mentioned some of them:
- Loan Amount: Make sure you are borrowing an education loan that will cover your entire expenses.
- Interest Rates: The rate of interest varies from lender to lender. Make sure you get a competitive ROI.
- Repayment: This is the most important part. It is important to know how much amount you are going to pay and for what tenure.
- Additional Charges: Banks charge additional fees such as processing fees and more. So, have an idea of these.
- Collateral Security: Some lenders may require collateral security, such as property or fixed deposits. Banks keep such things just to make sure the loan is secure.
Here are other things you need to know before applying for education loan.
Eligibility for Education Loan to Study in Finland
If you do not fulfil the eligibility criteria, any education loan provider will not offer you a student loan. Banks want to be sure that you are the right candidate to offer financial support. Here is some general eligibility for study loan:
- Admission Acceptance Letter: You must have an admission letter issued by any university in Finland.
- Age limit: Must be older than 17 years. (It is mandatory for a few banks and NBFCs)
- Course Selection: Few education loan schemes mention the eligible courses. So, make sure your selected course is one of them.
- Nationality: The student should be an Indian citizen.
Documents Required for Student Loan
Having an admission letter is not enough to borrow a student loan. Here is the list of documents required for an education loan. Make sure, you have all of it at the time of loan application.
| List of Documents Required for Student Loan |
|
|---|---|
| Proof of Identity |
|
| Proof of Address |
|
| Academic Documents |
|
| Financial Documents (For Primary Applicant and Co-Applicant) |
|
Education Loan Interest Rates
Education loan providers charge an annual percentage rate on the loan amount. It's essentially the cost of borrowing money to finance your education. Generally, government banks offer education loans at cheaper rates of interest compared to private banks. The student loan interest rate can vary depending on several factors, such as the applicant's profile, loan amount, tenure, and borrower's creditworthiness.
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How to Apply for Education Loan to Study in Finland?
To apply for an education loan to finance your higher studies, you can either visit the official website of banks or apply offline. It totally depends on you. Here is the basic application process of an education loan.
- Choose an education loan lender
- Keep all the documents handy
- Submit the application (Online or offline)
- Banks take 30 days to 45 days for loan processing and document verification.
- If approved, the loan amount will be disbursed directly to the university or institution.
Other than this, you can try Vidyalakshmi Portal. It is a government portal to apply for education loan. There are details of 84 education loan schemes offered by 38 Indian banks on the Vidya Laxmi Portal.
Top Education Loan Providers
Here is the list of popular education loan providers in India
- State Bank of India (SBI)
- Punjab National Bank (PNB)
- Bank of Baroda
- Canara Bank
- Union Bank of India
- HDFC Bank
- ICICI Bank
- Axis Bank
- HDFC Credila
- Avanse Financial Services
That’s all from our side about this topic. We understand that getting an education loan is a time-consuming process but do proper research and choose the one that fits your needs, even if it takes time. Students who wish to study abroad may get in touch with India’s top-rated loan providers and apply for an education loan through Shiksha Study Abroad. Also, you can mention your queries in the comment box below.
A government education loan is always better for students due to lower interest rates and other favorable terms. Public sector banks also offer government subsidies, flexible repayment terms, and no prepayment penalties. On the other hand, private banks offer faster loan approval if you are eligible. Additionally, the loan amount is higher than that offered by government banks.
Collateral loans are items of value which are secured and which are promised by the borrower to the lender in exchange for the loan amount. They have the right to sell the collateral if payments are not made on time. Government and commercial banks in India are the best sources of collateral loans.
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Yes, you can get a 100% loan to study abroad, but it depends on your lender and profile. Many private banks and NBFCs offer education loan that covers full tuition fee, cost of living and other expenses too. Some public sector banks may also offer 100% financing for specific programs.
To increase your chances of getting 100% funded education loan, you must have acceptance letter from a top university in the world, high value collateral, and a co-applicant with high cibil score.