The escalating cost of abroad education often poses challenges for students in financing their studies. In response overseas education loans have become the popular choice, allowing students to overcome financial barriers by keeping their savings intact. This smart option, however, comes with its own set of considerations.
Despite the application processes being digitalized by many financial institutions, delays in the approval process can still occur. Every lender follows its own timeline for document scrutiny, verification, and sanctioning the loan. So, to avoid these delays, it’s a good idea to understand the factors that can cause them.
If you are planning to opt for an education loan for abroad studies, this article outlines the factors that might cause delays in the loan processing. So, don’t miss out, stay right here, and read ahead.
Common Causes of Education Loan Sanction Delays
1. Documentation Challenges
Getting an overseas education commences with a lot of paperwork, and this is where the first challenge pops up. Incomplete paperwork or missing information can lead to delays, the financial lenders meticulously review and verify every detail. Thus, it is important for students to be very careful with all the papers. Don’t miss a thing and ensure that all the documents are original and correct. Little mistakes can cause big delays, and you should definitely avoid them to make your loan processing hassle-free.
2. Collateral Related Documents
Firstly, there are two types of education loans — collateral and collateral free education loan for abroad, which are also known as secured and unsecured loans. Now, for the secured loans, the applicant needs to pledge collateral as security. The applicant needs to submit collateral-related documents to the financial lender. Usually, a secured loan takes a bit longer to get processed as compared to an unsecured loan, since the documents go under strict scrutiny. If the applicant gives incomplete information, the loan processing might get delayed or sometimes even rejected. Thus, if you’re opting for a secured loan, make sure all your collateral documents are good to go.
3. Finance-Related Verification Process
When it comes to checking your financial profile, your CIBIL or credit score comes into the frame. This is to check the credit history, and whether the applicant can repay the loan amount within the given timespan. Usually, the financial lenders check these scores by deploying digital tools. However, the process can take longer than expected time, causing delays. Thus, having a good CIBIL score can help you get your loan sanctioned soon.
4. Admission Confirmation
Securing admission to an international educational institution is a must before you apply for an overseas education loan. The financial lender needs proof that you are enrolled in a recognized institution by providing them with an acceptance letter. Since universities and colleges already have a lot on their plates, your admission process can get delayed which eventually leads to a delay in loan processing. Thus, it is important to take follow-ups from your chosen university and make sure everything moves along hassle-free with unnecessary delays.
5. Visa Processing Time
Securing a student visa is one of the most essential steps when you are planning to study abroad. However, the bureaucratic processes involved in visa application can be time-consuming. The time taken for your visa to get approved directly affects your education loan disbursement timeline. So, it’s a good move to plan and apply for your visa early to avoid any delays in getting your education loan sanctioned.
Wrapping Up
Getting an education loan for studying abroad can be a bit undulating, but it is important for the students to know about the challenges so that they can be pre-prepared. Thus, if you want updates on education loan interest rate for abroad study and more, reach out to the top overseas education loan providers. We hope this article was helpful. Good luck!
