Education Loan to Study in Spain

The cost of studying in Spain may not be that high as compared to other top study abroad destinations. But it is significantly higher than that in India. For this reason, Indian students willing to study abroad in Spain look for financial aid options to proceed with their abroad education dream without any stress. This article talks about the education loans in Spain for international students.

A lot of times students and their parents are unable to gather the funds required to cover the costs of studying abroad. During such times, education loans from banks or financial institutions play a crucial role in funding education abroad. There are multiple Indian banks offering loans to study in Spain. In this article, we will be talking about the features of a student loan, eligibility of a student loan, fees & charges and documentation required for processing an education loan to study in Spain.

While there are multiple private and public Indian banks offering loans to study in Spain. Most Indian banks have identical eligibility, features and documentation required from borrowers/ co-applicant. So for the benefit of our readers, we are providing generic education loan requirements for students looking to apply for an education loan. Students should note that they need to get in touch with their nearest bank(s) to understand the requirements. Rad this articel ahead to get the complete information on the education loans in Spain.  

Also Read: Cost of Studying in Spain for International Students 

Education Loan for Spain

Applicants should note that education loans for studying abroad would cover the entire cost of education with no upper limit, however, this would come with collateral. If education loan applicants are looking to apply for an unsecured loan without collateral, there is an upper limit - the amount is determined by individual banks. 

Student Loan in Spain - Eligibility Criteria

Applicants looking to apply for an education loan need to fulfil the eligibility criteria laid down by various banking and non-banking financial institutions. These include (not limited to) the following:

• The borrower must be an Indian citizen.
• Co-applicants must be an Indian citizen.
• Ability to offer collateral for certain cases.
• Co-borrower(s) must have a bank account in any bank in India with cheque writing facilities.
• Confirmed admission to the colleges before disbursement.
• Borrower and Co‐applicant(s) to meet the bank's credit and underwriting norms as applicable from time to time.

Related Reads:

• Apply to India's top education loan providers through Shiksha Study Abroad
• SBI Education Loan for Study Abroad: Ultimate Guide

Student Loan in Spain - Fees and Charges

These include charges that are levied by any bank for a number of services that are availed by borrowers. Candidates should note that the charges mentioned below are the charges for the HDFC Education Loan for Foreign Education. We have included the charges to give you an idea of the costs involved in applying for an education loan to study in Spain or any other country. These charges are bound to vary from bank to bank.

Description of Services	Charges in Rupees
Pre-payment charges	Nil
No Objection Certificate (NOC)	Nil
Delayed Payment Charges *	@ 2 % per month of instalment ( MI/PMII) applicable taxes thereon
Statutory CERSAI charges	As per charges levied by CERSAI.
Cheque or ACH mandate or Direct Debit swapping charges*	Up to Rs.500/- per swap instance plus applicable taxes thereon
Cheque/ACH/Direct Debit Bouncing Charges*	Rs. 400/- per dishonour of cheque or ACH or Direct Debit return per presentation plus applicable any taxes thereon
Legal/ incidental charges	At actual
Stamp Duty and other statutory charges	As per applicable laws of the state
Manual Collection Charges*	Rs. 200/- per visit plus applicable any taxes thereon
Charges for Updating & Handling Loan Account As Per Customer Request*	Rs. 1,500/- plus applicable any taxes thereon
Origination Fees	1.5% Taxes of the Sanction Amount & is Non-Refundable

*Terms & conditions apply and may change conditionally. Credit at the sole discretion of HDFC Credila Financial Services Limited (formerly known as HDFC Credila Financial Services Private Limited)
*Charges which are in nature of fees are EXCLUSIVE of GST. GST and other government levies, as applicable, would be charged additionally.

Also, Read

Collateral for Education Loan: Everything You Need to Know	Public v/s Private Education Loan Providers
Indian Banks offering Education Loans for Studying Abroad: Interest, Eligibility, Documents	Step-by-Step Guide to Education Loans

Interest on Education Loan by HDFC Credila Financial Services Limited

Education Loan to Spain – Documents required

In this section, we are going to be talking about the documents required as part of the process to apply for an education loan in Spain. Candidates should note that these are the requirements for a particular private bank, the document requirements could vary on a case-by-case basis. Hence, it is always advisable to check with your bank for the documents required as part of the application process.

Education Loan application form: Education loan applicants are required to submit their education loan application form duly completed and signed

Two Passport Size Photos: Applicant and Co-Applicant are required to provide one set to be pasted on the application form and a second set to be affixed (stapled) to the application form

Photo ID: Applicant and Co-Applicant are required to provide any one of the following as photo identification proof:

• Permanent Account Number (PAN) Card
• Passport
• Driving License
• Aadhaar Card
• Voter's ID Card

Residence Proof: Applicant and Co-Applicant are required to provide any of the following as residence proof:

• Passport
• Driving License
• Aadhaar Card
• Voter's ID Card

Academic Documents of Student: The student is required to provide the following academic transcripts:

• Marksheet/Certificate of 12th Exam
• Marksheet/Certificate of Subsequent Years of Education e.g. BE, BCom, BSc, etc.
• Marksheet of Any Entrance Exam Taken e.g. CAT, CET, etc. (If applicable)
• GRE/GMAT/TOEFL/IELTS, etc. Marksheets (If applicable)
• Scholarship Documents (if applicable)

Proof of Admission (If available): The student is required to provide a printed admission letter from the Institute on its letterhead with the institute's address.

Bank Statement: Co-Applicants are required to include the last eight months of bank statements of the Bank Account where Salary or Business/ Professional receipts are credited every month. If more than one bank account, provide copies of all.

Income Proof of Co-Applicant: Co-Applicants (salaried/self-employed) are required to include income proof as part of the loan application.

• In the case of Salaried Employees (All the following)
  • Latest 3 Salary Slips or Salary Certificate on Employer's Letterhead
  • Last 2 year's Form 16 from Employer or Last 2 Year's Income Tax Returns
  • Any Other Income Proof That is Not Reflected in the Above Documents
• In case of Self Employed or Professional (All the following)
  • Last 2 Year's Income Tax Returns
  • Last 2 Year's Certified Financial Statements or Provisional Financial Statements Duly Certified by CA
  • Proof of Office (any one of the following, Lease Deed, Utility Bill, Title Deed, etc.)
  • Any Other Income Proof That is Not Reflected in the Above Documents

Collateral - Immovable Property: A higher education loan amount would require the borrower/co-borrower to submit collateral against the loan amount. In this section, we are going to be talking about document submissions for immovable collaterals. These include Flat, House, and Non-Agriculture Land. All the Relevant Documents from the following list are required:

• Property Title Deed
• 7 / 12 extracts in case of land
• Registered Sale Agreement Along With Society Share Certificate
• Original Registration receipt for the above agreement
• Allotment Letter By Municipal Corporation / Authorized Govt. Authority Like MHADA, CIDCO, etc. Please add HUDA, DDA, JDA, GIDC etc
• Previous Chain of Sale Deed establishing title
• Latest Maintenance bill along with Receipts issued by the builder/ society,
• Latest Property tax bill along with receipts,
• NOC for the mortgage from society/builder,
• Approved building plan
• Encumbrance certificates as on date etc

Note: Other than the original completed application form, Please DO NOT provide any original supporting documents at the time of applying for a loan. All copies of the above-provided documents should be self-attested.

Candidates should note that other Indian banks offering loans to study in Spain include:

Nationalized Banks	Private Banks
SBI	HDFC Credilla
PNB Udaan	ICICI Bank
Bank of Baroda	Axis Bank

What are the expenses covered in an Education Loan:

All of the tuition fees as determined by the college/University. Up to 100% of other expenses including living and hostel expenses, travelling expenses, examination fees, library/laboratory fees; purchase of books/equipment's/instruments/uniforms; passage money for studies into India; purchase of computers/laptops considered necessary for the completion of the course as decided by the bank. Travel fare is restricted to one economy class return ticket between India and the country of study.

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

What are the Steps to applying for an Education Loan to study abroad

While applying for an education loan is technical. However, candidates are required to do their homework well to be able to land the best deals. Education Loan enthusiasts are required to follow the below-mentioned steps while applying for an education loan:

• Candidates should check whether their university/ course is recognized by the bank for the loan application
• The candidate should have a loan amount that he/ she plans to borrow from the bank. Applicants should note that tuition fees and other expenses would have to be accounted for by the student to the bank in the form of documents as received by the university.
• Candidates should check out the bank that is giving the best rate of interest and apply accordingly 
• Once the formalities are complete the education loan would be credited for study purpose 

Why is an Education Loan not as Bad as it Sounds?

Well, we all know that an education loan could have some ugly connotations. However, here are a couple of reasons why you should opt for an education loan:

• Seamless remittance to international institutes
• Hassle-free process for timely disbursement of loan
• Students who want to take their own financial responsibilities, without depending on their parent’s savings
• Interest deduction applicable on the Education Loan under Section 80E of the Income Tax Act of 1961
• Get a collateral-free loan of up to Rs 40 lakh, for select institutes (the amount can vary depending on the bank)
• Pre-Visa disbursal, for students applying for education in a foreign country
• Other student expenses, such as laptop or exchange travel are also covered
• Attractive interest rate starting at 10.50% per annum.

If you need assistance with university admissions, our Shiksha Study Abroad counsellors would be happy to assist you. If you want to get in touch with us, you can write to us in the comments below.

Also, Read

Eligibility Criteria for Education Loan - Documents Required	What Documents Are Required For an Education Loan?
Education Loan Vs. Self Funding - Which is Better to Study Abroad?	Top Education Loans Providers in India for Study Abroad

Education Loan to Study in Spain FAQs