Education is becoming increasingly expensive with the passing years, and therefore education loans have emerged as a crucial means of financial support to Indian students. During studies either in India or overseas, students usually need money to pay tuition fees, expenses, and other charges. Certainly financial institutions and banks in India provide good interest-rate-based education loans with hassle-free repayment schedules. In this article we will get to know more about the financial planning for studying abroad for loan, saving, and visa timelines for easy access.

1. Education Loans

Education loans are one of the most sought-after modes of financing studies overseas. Financial institutions and banks provide student loans with different rates of interest and repayment periods. Education loans normally cover tuition costs, living, travel, and insurance. Government-owned banks in India offer loans with comparatively low interest rates, while private ones can provide faster approval but with greater expenses.

Before submitting an application, make sure you comply with the eligibility conditions, including admission to a foreign recognized university, co-applicant conditions (a parent or guardian), and collateral security for larger loan sums. Government-sponsored programs like Credit Guarantee Fund Scheme for Education Loans (CGFSEL) enable students to obtain a loan without collateral up to a limit.

2. Savings and Self-funding

Loans may bring relief to one's finances, personal savings or family funds may greatly lower dependency on loans. Students should ideally save money to fund their college education years prior to college entrance. Parents may invest in fixed deposits, mutual funds, or special education-targeted investment plans to build adequate funds.

Part-time working during studies is also a contribution that can be made by the students. Most countries, such as the USA, Canada, Australia, and the UK, offer international students limited part-time working permission per week to help them finance living costs. The students should expect part-time income not to be their only mode of financing but to afford their daily expenses.

3. Proof of Funds

All countries require proof of sufficient funds for the issuance of visas. This is to make sure that students can afford to study and not have any financial limitations. The amount varies from nation to nation and institution to institution but generally caters to tuition fees and living expenses for at least one year. Proper documentation, such as bank statements, loan sanction letters, and sponsorship letters, is crucial in visa acquisition.

4. Income Tax Return (ITR)

Submission of Income Tax Returns (ITR) is also important for students and sponsors, particularly while applying for loans and visas. Most financial institutions require ITRs of the past two to three years to gauge the loan applicants' repayment capacity. Even if students do not have any income, their parents or sponsors must keep submitting ITR regularly so that complications in financial documentation do not arise.

For self-sponsored students, ITR documents assist in establishing a valid source of funds, thereby facilitating the visa process. Tax records are also required by some embassies to confirm financial stability prior to issuing a student visa.

5. Visa Timeline and Financial Planning

The visa application differs from country to country, but financial readiness is a major factor in prompt approvals. This is a general timeline:

● 6-12 Months Prior to Departure : Study and apply for student loans, scholarships, and sponsorship opportunities.

● 4-6 Months Prior to Departure : Get proof of funds, ready bank statements, and have all your financial documents ready.

● 2-3 Months Prior to Departure : Submit an application for a student visa with full financial documentation. Processing times are variable, so it is best to apply early.

● Last 1-2 Months: Book travel, accommodation, and open an international bank account to deal with expenses effectively.`

Financial planning is the backbone of international studies. From availing an education loan to maintaining adequate savings, filing ITRs, or adhering to visa norms, every step warrants careful planning. Families and students must plan in advance, assess the available funds, and keep all documents prepared in the event of an emergency to spare themselves from last-minute troubles. Effective planning would make international studies a cost-effective, rewarding experience.

(The author is Founder, On Track Education )