Education Loan to Study in France

Many students nowadays are opting to Study in France for their higher education. In recent years, France has truly come up to be a perfect study abroad destination along with many English-speaking countries. Higher education in France has many options for students looking for English taught Universities.

The Tuition fees in France is lower compared to other European countries. However, France is not exactly famous for its living and accommodation costs. To cover your tuition fees and living expenses, there are scholarships to study in France. However, not everyone is eligible for a scholarship or grant. The next best way to fund your expenses is to apply for an Education Loan to Study in France.

How to get the Education Loan to Study in France?

International Students looking forward to studying in France with the help of an education loan must start their process at least 7-8 months before their semester begins. Many banks provide easy and obtainable student loans for France. The steps you need to follow for applying for a student loan are given below:

1. Research about the banks providing international education loans, their eligibility criteria and the requirements of the document requirements.
2. Calculate the amount of loan you will require and also estimate how much you pay on your own.
3. Get an admission letter from the respective university in France.
4. Compare the different loan options provided by the different banks for continuing further studies in France and finalise the one which suits your requirements.
5. Once you finalize the bank and the loan amount, you should fill out the loan application form.
6. Submit all the documents as asked by the bank such as your identification proof, address proof, birth certificate etc.
7. Once the bank approves your loan, it will issue a loan document that includes various elements of the loan. You need to sign it after reading it.
8. After submitting the signed agreement, the bank will pay the amount to you in instalments or as required by the university.

In the next part of the article, we will go through each step in detail. You need to follow it and take note of the important points, as it is a big decision which will affect your financial life in future.

Research about the banks and loan options

Your process begins with researching different banks and loan options. But before you start your research, there are few elements you should take into account:

Factors to consider for education loan to study in France

Before applying for a student loan to study in Candian universities, you should have a clear picture of how much fund you will require and how much you are going to manage on your own. Other important factors are:

• Decide on the university and course you want to study in France.
• Calculate the total amount you will require to study abroad in France.
• Make the list of all the documents and collect them accordingly to submit during the application.
• Make sure to be ready with the collateral or guarantor.
• Make sure to apply for the international educational loan before the three months before applying for a student visa for France.
• Estimate the time of fund disbursement.

Once you are prepared with the above factors, check your eligibility for an education loan to Study in France. Here are the criteria:

Student Loan for France: Basic Eligibility

Before applying, check whether you are eligible to apply for the loan or not. These are some basic criteria to apply for an Education loan for France that your bank will require you to fulfil. Different banks follow different eligibility criteria. The common eligibility criteria are:

• The loan applicant must be a citizen of India
• The student must have applied and been accepted in a recognised French institute for a full-time program.
• The applicant must be 18 years. If the applicant is younger than 18, the parents will have to apply.
• The applicant should have an outstanding academic record.
• The applicant must have enrolled in a job-oriented course of studies. 

Improving Eligibility for an Education Loan

Daily several 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 a timely repayment
• Displaying a promising future employment/income generation

Calculate the amount required to study in France

In the next step, you have to estimate the amount you will require to study abroad in France. Generally, an education loan to study in France covers the total cost of a student’s education in France. This can vary depending on the selected institution and study program. While calculating the expenses include the following expenses:

• Fees payable - The university fee for each academic period.
• Accommodation/ hostel charges -These expenses include on-campus university housing expense and the standard price of everyday meals. If you choose to live off-campus, then the expenses covered will be the rent, utilities and transportation expenses.
• Exam, laboratory and library fees
• Expenses like books, equipment like computer, 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​

Letter of acceptance from the university in France.

You have to get admission in the University of France. You have to show the proof while applying that you are admitted to the French University. There are plenty of universities in France open to international students. Here are the top universities in France:

1. PSL Research University
2. Ecole Polytechnique
3. Sorbonne University
4. CentraleSupelec
5. École Normale Supérieure de Lyon 
6. Ecole des Ponts ParisTech 
7. Sciences Po 
8. University of Paris Sud
9. Pantheon-Sorbonne University
10. Ecole Normale Supérieure

Not only the above-mentioned universities, but you also have several options in France where you can pursue your higher education. You will get full information here: Universities in France

Comparison of Education loan options

You should compare the different loan options provided by the different banks for studying in France and select the one which suits your needs. Compare the loans on the following parameters:

Factors to Consider for Student Loan in France:

• Margin: Simply put, the margin is the difference of expenses that are covered in education loans and the ones that are not. Most of the private banks cover all the expenses for Study in France, while some Public Sector banks, like SBI, will have a 10% margin. i.e. The student loan for France will cover 90% of the expenses. So make sure of the Margin before you apply for a student loan in France.

• Moratorium Period: Moratorium Period is the duration in which the student is not repaying the loan. The Moratorium period is generally six months to one year after the loan. See the terms of student loans before applying, for details about the moratorium period.

• Repayment Tenure: Repayment Tenure is the time in which you will repay the loan. The loan taken to study in France can be paid in instalments. The repayment tenure is usually 5 to 7 years. For some loans, it may be 10 to 15 years. However, the period and instalment amount differ with the bank and loan amount.

Some Other factors are:

• Interest rate
• Expenses covered such as tuition fee, books, travel etc.
• Processing Fee
• Income tax exemptions
• Loan processing time

 Each factor is important, so take your time and choose wisely. If you decide after careful planning and comparing you will be able to save a few dollars.

International Education Loan application form.

In this step, you will start the process of applying for your education loan for France. Once you finalise the bank and amount of loan you will require, you have to fill the loan application form. You can apply online or offline according to the bank facilities. You must fill the Loan application form with correct information 
 
In the application form you will have to fill your Full name, parents name, residential address, date of birth, information of ID proof, course name, duration of the courses, name of the university, Income, Liabilities, employment details, type of security, tuition fees, statement of other expenses etc. Fill each and everything you are asked in the form correctly and recheck it before submitting.

Submit the documents

Every applicant needs to provide some common and important documents along with the Student Loan Application Form while applying. Keep the following documents ready for a swift process of Loan Application at your bank:

• Proof of Admission / Acceptance Letter
• Student Loan Application Form
• Passport Size Photographs
• Academic Mark Sheets, Certificates and Degrees
• Identification proof such as Valid Passport, Voter’s ID Card etc.
• Proof of Age. You can submit your Birth Certificate as evidence.
• Exam scores (GMAT / GRE / IELTS / TOEFL)
• Residence proof of both Student and Guarantor
• One year statements of the bank
• Guarantor’s income Proof

Other Optional Documents

• Official Certificate of Minority Caste.
• Certificates of Extra-curricular activities.
• Documents regarding any disability or illness.

Education loan agreement to study in France

Once your international education loan application is approved by the bank, it will issue a loan document. The document will have all the terms and conditions of the education loan along with the basic details.

The information mentioned is the borrower’s name, agreed loan amount, the period of repayment, interest rate, the signature of both the parties, collateral security details etc. Read all the elements properly and if you agree with those, sign it.

Disbursement of the student Education loan

After signing your loan agreement for France, the bank disburses the amount. It will pay the amount to you in instalments or lump sum as per agreement. In some cases, the bank may pay the tuition fee directly to the respective university. Once you receive your amount, spend it on the necessary expenses such as tuition fee, books, purchasing laptop, accommodation etc.

Collateral Rules for Education Loan to Study in France:

In most cases, if the loan amount is more than 7.5 lakhs, you are required to deposit collateral as a security to the bank. A Collateral can be anything, liquid assets like golds, security deposits and bonds, or immovable tangible assets like properties, land, etc. When you are applying for a student loan in France, the following procedures are executed:

Legal Opinion on Collateral:

A lawyer appointed by your bank will inspect the collateral, and decide if the property can be mortgaged or not. You will have to submit original documents of the property.

Report of Valuation:

A bank engineer will evaluate the market value of your asset and also gauge a deferred value of your collateral in case the bank has to mortgage it.
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