Education Loan for Studying in France in 2024-25

France is one of the top destinations for studying abroad, known for its excellent education system and renowned courses. Even though the cost of higher education in the public universities of France is taken care of by the French government; the cost of studying at the private universities and the cost of living in France may feel heavy on students' pockets. For this reason, looking for financial aid such as scholarships or education loans to study in France can be very helpful for students.  

With the tightening of visa rules in the USA and Canada getting more and more crowded, students are looking for other options to study abroad without compromising on the quality of education, lifestyle, and budget. This is where countries like France are coming to light as the universities are providing world-class facilities, a well-framed curriculum and the opportunity to practice simultaneously. Each year, roughly 17,000 students apply to French universities and about 10% (and rising with each year) of the country's college student population are international students. Higher education in France is being given the utmost significance owing to its experienced faculty and research opportunities. Majorly famous for its Arts programmes, French universities are now offering majors in any subject and various electives to choose from irrespective of the programme you opt for.

Many types of education loans are available for Indian students who want to pursue higher education in France. Some of the popular ones are HDFC Credila, State Bank of India education loan, Axis Bank, and Avanse. Documents such as university offer letters, fee details, academic records, and identity and residence proof will be required in order to apply for an education loan. The amount of loan and rate of interest may vary depending on the lender and applicant's financial profile. Students are therefore suggested to conduct their research carefully and compare different loan options before selecting the one which best suits their budget and requirements.

Tuition Fees, Cost of Living and Miscellaneous Expenses in France

You can expect the overall cost of studying in France to be similar to that of any European country’s average. Indeed, the tuition fees are minimal, yet the cost of living and other expenses make the overall expense above average for the whole of Europe. The tuition fees of state universities are the lowest as compared to private universities' tuition fees which are on the higher side ranging from €3,000 to €15,000 per annum for UG courses and €5,000 to €20,000 for graduate programmes. You can expect the basic fees for a first-level degree to be €170 - €620 per year excluding any significant administrative charges, which few universities charge as an add-on. Yet, as compared to other countries, the final amount is relatively low. For second-level degrees, the basic fees amount to 259€ and 393€ for third-level degrees. Specialised first-level degrees like engineering and medical degrees cost relatively more around 611€ and 542€, respectively, per year. Accommodation becomes the expensive area one has to spend heavily on and next comes groceries. Public transport costs around 25 € with a student pass.

Loan Documents Required to Study in France

To cover all these expenses, study abroad aspirants have various financial aid options right from applying for scholarships to student grants. However, only those who are eligible as per directives, are granted these aids. For the rest, a student loan or education loan is the best option and thus, has become a widespread preference. As a result, almost all banks provide education loans with hassle-free and quick approval.

To ensure a smooth and swift loan approval, keep the following documents ready beforehand:

• Filled Application Form
• PAN card, Aadhaar card, Driving license, Passport or voter ID
• Admission letter from the university
• Proof of Residence
• Photos of both– Applicant and Co-Applicant
• Photo ID for both– Applicant and Co-Applicant
• Co-Applicant’s Income Proof
• Documents related to your Academics
• Financial statement
• Documentation required for Immovable Property in case collateral is needed

In case you're finding it difficult to apply for an education loan, you may also apply for loan through Shiksha.

Providing Collateral

Collateral refers to any tangible asset, preferably liquid assets like shares, bonds or gold, or any immovable property (house or land) that the borrower can offer to secure the loan.

Some banks allow loans without collateral of up to seven lakh rupees. This amount differs from bank to bank. Collateral-based (secured) loans require you to present an asset that has a value equivalent to the loan amount you are applying for. If you do not own any security, an education loan without collateral (unsecured loan) is preferable.

If the borrower avails a loan by securing an immovable property as collateral, the following two reports are involved:

1. Legal Opinion or Search Report: A report provided to you by the bank’s approved lawyer. In the report, the lawyer states if the property shown by you can be mortgaged or not. For this, you need to submit the original property papers and relevant supporting documents. After the lawyer/s visits the property and inspects it, he will provide you with the clearance.
2. Valuation Report: A report provided by the bank’s approved engineer. The mortgaged property’s value is considered for the loan. The report has two values: Market Value and Deferred Value. Market Value is the price an asset would fetch in the marketplace, while Deferred Value refers to the lowest possible value of the property that the bank can get if they mortgage it.

Similar Articles:

• The A to Z of Study Abroad Loans: All Terms and Their Definitions
• Step by Step Guide to Education Loans

Factors to Compare while Selecting a Bank for Borrowing a Loan

An education loan is quite a big amount and since unlike scholarships, you have to repay the amount, taking care of all the associated conditions is important. Check a few points of comparison which you must consider while choosing a bank for borrowing a student loan to study in France.  

1. Loan Margin: The amount that the student or borrower needs to incur so as to cover the entire education expenses is known as the Loan margin. In general, Banks do not offer 100% expense coverage. Public sector banks such as SBI provide 90% expense coverage and the remaining 10% is the margin (self-funded). On the other hand, Private Banks and Non-banking Finance Companies (NBFC) provide 100% expense coverage. Thus, it is wise to consider all options before choosing a bank for the loan application.
2. Moratorium Period: It is the time period during the loan tenure when the borrower is not eligible to repay the loan amount, either fully or in EMIs. Generally, the duration of this period is six months or one year. It is advisable to confirm the moratorium period before signing the loan papers so as to avoid any disputes later.
3. Repayment Tenure: Repayment Tenure is the period of duration where you are eligible to start making your payments via EMI in order to repay the loan amount. As per multiple market surveys, the repayment period usually ranges from five to seven years. However, there are certain banks that have 10-15 years as repayment tenure for education loans to study abroad.

Also Read

• How does the proposal of levying tax collected at source will affect study abroad aspirants?
• How to choose your bank for Education Loan to Study Abroad

Education Loan Eligibility to Study in France in 2024-25

Banks prefer offering education loans at a low interest rate to brilliant students, therefore, the basic eligibility to qualify for an education loan is academic excellence and achievements. Further eligibility criteria include:

• The candidate applying for the loan must be a resident of India
• He/she must be undergoing/completed a graduate/postgraduate degree or a PG diploma from a college or university recognized by UGC/AICTE/Government
• He/she must have confirmed admission in recognized educational institutes abroad
• The age of the candidate must fall must be between 18 to 35 years during the loan application
• Students pursuing full-time courses need to have a co-applicant who can be either parent/guardian or spouse/parent-in-law (in case of married candidates)

How to Improve Your Eligibility for an Education Loan to Study in France?

Daily a number of loan applications reach the banks and to top the pile, you can work on the following points to enhance your profile to qualify for the loan:

• Securing high grades/ranking in the qualifying exams
• Showcasing an excellent academic record
• Admission letter from an esteemed or top-tier college/university
• Strong financial background of parents/guardians/co-borrower to ensure timely repayment
• Displaying a promising future employment/income generation

What Expenses are Covered by the Education Loans?

The following list of expenses is covered by most education loans for studying abroad. You can check specific loan coverage for more details. 

• Fees payable
• Accommodation/ hostel charges
• Exam, laboratory and library fees
• Expenses like books, equipment like computers, travelling expenses abroad, uniforms
• Caution deposit/ building fund/ refundable deposit
• Other expenses required to complete the course such as study tours, project work, or thesis

Government Guidelines for Banks that You Need to Know

Below are some of the government guidelines for banks issuing student loans to study abroad that you must be aware of. 

• No bank is allowed to ask for a due certificate as a pre-condition for consideration of an educational loan. However, they can insist on an affidavit or declaration to confirm that no other loans have been availed from other banks.

• Under priority sector lending, loan applications should be disposed of within a period of fifteen days to one month, but not exceeding the time norms.

• Banks may allow certain relaxations in the norms on a case-to-case basis after the approval by a high-level authority so as to bring in flexibility in the margin, security norms or eligibility.

Related Articles:

This was all about the education loans for studying in France. If you wish to study abroad then, you can get assistance from Shiksha's Counselling Services for free.