Education Loan to study in Spain

Spain is one of the most preferred study destinations in Europe. International students are attracted to its interesting culture and lifestyle. With lots of universities and courses to offer, there will be something for everyone in this popular country.

Studying abroad is an expensive affair. Many international students drop their plans to study in Spain as it is costlier than studying in their home country. If you are among those, don't worry we have a solution for it. Here we are going to present you complete information about Education Loan to Study in Spain.

How to get the Education Loan to Study in Spain?

International Students aspiring to study in Spain with the help of an education loan must start their process not less than 7 to 8 months before their semester begins. Here is the process you need to follow for applying for a student loan:

1. Explore all the available banks options providing international education loans, know their eligibility criteria and document requirements.
2. Calculate the total fund requirements. Also, estimate how much loan you will require and how much you will finance on your own.
3. Get an admission letter from the respective university in Spain.
4. You should compare the different loan options offered by the different banks for studying in Spain and select the one which suits your requirements.
5. As soon as you finalize the bank and the loan amount, you should fill out the loan application form.
6. Attach all documents such as identification proof, address proof, birth certificate, mark sheets etc.
7. Once the bank decides to approve your loan, it will issue a loan document that has various elements of the loan.
8. After signing the loan document, the bank will reimburse your amount.

Its time to get deeper into these steps. Read each step thoroughly and take note of the important points, as it is a crucial decision which will affect your further financial life.

Research about the banks and loan options

Education Loans are a great way to fund your education abroad in Spain. Your first step would be researching. Explore the different banks and loan options. But before you start your process, there are a few things you have to consider. 

Factors to consider for applying for education loan

Before applying for a student loan to study in Spain, you should have a proper idea of how much money you will require and how much you are going to self-finance. Other important points you need to picturise before applying for the education loan are:

• Decide the course and university you want to study in.
• Calculate the financial requirements for study abroad in Spain.
• Make a list and collect all the documents you will require during the application.
• Contact the person and be ready with the guarantor.
• Estimate the time of disbursement.

After considering these points, check your eligibility for an education loan to Study in Spain. Here are the criteria:

Eligibility Criteria to apply for international education loan

Before applying for the loan, check whether you are eligible or not. Different loan providing institutions follow different eligibility criteria. The common eligibility criteria followed by almost all the banks are given below. The applicant-

• should have a fantastic academic record.
• must have a confirmed seat at the Spanish university.
• must have enrolled in a professional or technical course of studies. Banks usually favours job-oriented courses.
• must be above 18 years of age otherwise his or her parents will have to apply for the loan.

Improving Eligibility for an Education Loan

Plenty of loan applications are submitted in the banks every day. To get your application to get the advantage of priority, you can work on the following points to enhance your application to qualify for the loan:

• Gaining excellent scores in the qualifying exams.
• Showcase your outstanding academic record.
• Admission letter from a valuable college/university.
• A powerful financial ability of parents/guardians/co-borrower to ensure a timely repayment.
• Submitting a promising future employment or income generation.

Calculate the amount required to study in Spain

Here you have to estimate the total amount of finance you will require to study abroad in Spain. Generally, an education loan to study in Spain covers the total cost of a student’s education in Spain. The loan amount differs with the chosen institution and study program. While calculating the total expenditure, consider the following expenses:

• Tuition Fee:- The university fee for each academic period.
• Mandatory Fees:- This involves expenses like student centre fees, student activity fees, recreation fees, residence hall activity fees, new student fees, etc. 
• Accommodation:- This expense includes your housing expenses in Spain during the studies. You can choose on-campus university housing or off-campus housing.
• Books and Supplies:- You will also have some books and supplies expenses during the study in Spain. You may also need to purchase a laptop or computer expenses.
• Transportation:- Expenses like airfare, parking permit, monthly bus/ train pass etc.
• Other Expenses:- Expenses of project work, entertainment,  communication, clubs etc are also considered.

Once your final amount is ready, you have to check how much you will be able to pay on your own and how much you will require to take a loan. Estimating the Cost of studying in Spain is a crucial step, calculate it properly after including all the expenses.

Admission Letter from the university in Spain

The whole loan process is for studying in Spain, so you need to take admission in the University of Spain. You need to show the evidence of admission while applying for the loan. There are a plethora of Spanish universities welcoming international students. The top universities in Spain are listed below:

1. Universitat de Barcelona 
2. Universidad Autónoma de Madrid 
3. Complutense University of Madrid 
4. Universitat Autònoma de Barcelona
5. University of Navarra 
6. Universitat Pompeu Fabra 
7. Universidad Carlos III de Madrid (UC3M)
8. Universitat Politècnica de Catalunya · BarcelonaTech (UPC) 
9. Universitat Politècnica de València
10. IE University 

The list continues with many more universities for pursuing your higher education in Spain. You will get the complete list with details here: Universities in Spain

Comparison of Education loan options

You should compare the different education loan options. Select the one which matches your requirements better. Compare the loans options offered by the different banks based on the following points:

• Interest rate
• Processing Fee
• Loan amount
• Loan margin
• Collateral demanded
• Income tax exemptions
• Moratorium Period
• Loan processing time
• Disbursal requirements
• Prepayment terms

Each factor plays an important role, so take your time to conclude. If you decide after proper planning and comparing you can save a few dollars. 

International Education Loan application form.

In the next step, you have to start the process of applying. After deciding the bank and loan amount, you have to duly fill the application form. It can be online or offline. Make sure to fill correct information in it and recheck it before submitting. You have to fill the form with the following details

• Your full name
• Parents name
• Address
• ID proof
• Course details
• University name
• Income and Liabilities
• Employment details
• Type of security
• Other expenses etc. 

Submit the documents

Loan applicants need to provide some documents for verification along with the Loan Application Form for Spain study. The list of the documents required for applying for the education loan are listed below:

Documents for Students for Primary Applicant

• A copy of a valid passport.
• latest passport-sized photos
• Previous Academic Records. There should be Marksheet of Class 10th, 12th, Graduation, PostGraduation.
• Copies of the Certificate copies of CA, ICWA, CPA.(if applicable).
• Scoresheets of standardised exams required for studying abroad. For example IELTS, GRE,  TOEFL, GMAT, ACT, SAT etc
• Identification document. For example you can present your Valid Passport, Aadhar Card, Voter’s ID Card, etc.
• Proof of Residence. For example Telephone bill or Electricity bill, 
• Proof of Age. For example Birth Certificate
• Proof of Admission at the University of Spain. 
• Statement of cost of attendance.
• Statement of Other expenses. 

Documents of Co-Applicants

• Proof of Personal Identification 
• Proof of Residence 
• Two recent passport-sized photographs.
• Proof of Income(Salary slip)
• Account Statement or Copy of Bank Passbook for the last 6 months.

Other Optional Documents

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

International Education loan agreement

After checking the eligibility criteria and verification of documents,  the bank will approve your loan.  It will issue a loan document that will have various terms and conditions of the loan. 

The details mentioned in the loan document are the borrower’s name, agreed loan amount, the period of reimbursement , interest rate, collateral security, the signature of both the parties, etc. Read the loan agreement and then sign it.

Disbursement of Loan Amount

After signing and submitting the loan document, the bank will pay the loan amount to you either in parts or lump sum as mentioned in the agreement. Once you receive your amount, spend it on the necessary expenses such as tuition fee, books and supplies, accommodation, project works, examination fee etc. Don’t waste your money on the needless expenses. 

Collateral Rules for Education Loan to Study in Spain

Any movable or an immovable, property deposited as a security in the bank for an international education loan is known as collateral. The rate of interest of the education loans to study in Spain directly depends on the value of collateral deposited. In order to minimise the risk involved in paying off the loan, most banks request collateral.

Instruments used as collateral: 

• Any movable asset such as Fixed Deposit, shares, bonds etc. 
• Documents of physical property such as land, house, any commercial property etc can be used as collateral. 
• Even gold, mutual fund units, life insurance policy, government securities, debentures etc can also be deposited as collateral.

How much can be borrowed against collateral?

• If you want to take the loan by keeping your immovable property as collateral, the representative of the bank will verify your property and prepare a report accordingly.
• Additionally, the representative of the bank will also check the value of your property. Depending on this results of the verification nd valuation, the loan amount will be decided by the bank.

Repayment of Education Loan to Study in Spain

The loan taken to study in Spain can be paid in instalments. The loan can be reimbursed within 10 -15 years after taking the loan. Usually, the repayment period starts when the study program is completed. Some banks even provide a relaxation period of 6 months after securing a job or a year after the completion of studies for repayment.However, the period and instalment amount differ with the bank and loan amount.

For many students, Education Loans schemes make their higher education possible in foreign countries. Follow all the steps you will surely reach your study dream destination.

You should also read these articles:
Top courses to study in Spain
Stay back and Work permit after Study in Spain
How to Apply to University in Spain?