Diploma courses are a preferred study option for students who wish to study abroad. It is an ideal course option and cost-effective for international students. Canada, USA, UK, Australia, New Zealand, and Ireland are some of the popular study abroad destinations that offer diploma courses.
In this article, we shall discuss the details of overseas education loan for diploma courses abroad. Keep reading to know more.
Types of Diploma Courses Abroad
Firstly, let’s discuss the types of diploma courses offered by popular study destinations. Students can enroll for these according to their preferences and eligibility criteria.
Generally, there are two types of diploma courses abroad, they are
- Undergraduate Diploma Courses
Students can enroll for Undergraduate diploma courses after their 12th grade.
- Postgraduate Diploma Courses
Students can enroll for Postgraduate diploma courses after the completion of their undergraduate degree.
Types of Education Loans for Diploma Courses
Financial institutions offer two types of education loans for overseas diploma courses. They are mentioned below.
- Secured Education Loans
Secured education loans, also known as collateral education loans, can be taken for diploma courses abroad. In this type of loan, the applicant needs to provide collateral security against the loan amount. Taking a secured education loan can be advantageous for the applicant as this type of loan has the lowest interest rate for education loans abroad, no loan repayment during the diploma period and a longer repayment period.
- Unsecured Education Loans
Unsecured education loans, also known as without collateral loans, can be taken for diploma courses abroad. The applicant does not have to provide any type of security for this loan. The loan is granted based on the CIBIL score and profile of the applicant.
Financial institutions do not offer unsecured education loans for undergraduate diploma courses. Unsecured education loans can be taken for Graduate diplomas and PG diplomas. The rate of interest is higher than the secured education loans.
Financial Institutions that Provide Education Loans for Diploma Courses
There are 3 types of financial institutions that provide education loans for UG and PG diploma courses abroad.
- Nationalised Banks
- Private Banks
- Non-Banking Financial Companies (NBFCs)
Loan applicants can apply to any of these financial institutions based according to their profile and loan requirements.
Steps to Get an Education Loan to Study Diploma Courses Abroad
Getting an education loan can become complicated if you are not aware of the loan application process. Here’s a step-by-step guide for getting an education loan to study diploma courses abroad.
- Verify your loan eligibility
- Compare financial institutions and analyze your loan requirements
- Shortlist the financial institution and initiate the loan process
- Get your required list of documents
- Submit these documents to your financial institution
- In case of a secured education loan, get your collateral documents and property verified.
- Financial institution approves the loan.
- A loan sanction letter is granted.
If you are on a restricted budget and have limited resources to study abroad, to cut down your cost of diploma courses you can apply for any of the national overseas scholarships such as Government scholarships for diploma courses abroad.
Getting to study diploma from abroad can be a career changing experience for students. If you are looking to study abroad and require loan assistance, you can contact the best overseas education loan providers in India. They would assist you with the entire loan application process.