Published date: 16 Nov 2019 Updated on: 06 Apr 2020 France hopes to be home to 5,00,000 international students in the coming years. No wonder they are expanding English-taught programmes and creating a €10 million (US$11.4 million) support fund to better overseas student services. Already, a change is visible. From 2017 to 2018, the number of international students in the country rose by 4.5%. Currently, there are about 3,43,000 of them in France. So, it is entirely possible that you are thinking of pursuing higher studies in France, especially considering the low tuition fees. Get Secured / Unsecured Education Loan For France With GyanDhan By Filling This Form How Much Does it Cost to Study in France? France is known to have some of the lowest tuitions in the world. According to Campus France, the official government agency for education, the fees for public universities are: €2,770 at the bachelor's level, annually. FYI, the undergraduate degree is called ‘licence’ in France. €3,770 at the master's level, annually. The tuition private colleges ask is much higher and can reach up to €20,000 per year. Business schools in France are the exception to low tuition. For example, INSEAD’s fee for one-year MBA program is €87,000. A broader view of how much it costs to study in France is given here. Living in France: The Expenses The cost of living in France, if you enrol in a public university like PSL, Sorbonne or École Polytechnique, is higher than the cost of the degree. That said, if you live in cities like Lyon or Bordeaux 10,000 to 12,000 euros per year does the trick. In case the college is in Paris, then the annual expenses rise to 15,000 to 17,000 euros at the minimum. It should be noted that MBA colleges in the country estimate living and miscellaneous expenses to be over 27,700 euros a year. What are the Education Loan Options for France? If not the tuition fees, then the money you shell out to live there points to the obvious – financing your studies in France is a must. It becomes essential if you opt for an MBA in the country, which incidentally has 2 of the top 10 business schools in the world. Education loan is one of the ways to do it. But how do you choose the best study abroad loans for Indian students in France? For that, GyanDhan comes to your aid. The easier option is to give us a call, and we’ll have one of our loan counsellors on your case in a jiffy. But, we know, you digital natives love to do your homework. To that goal, we give you all the nitty-gritties of student loans for France. First Things First: Types of Education Loan for France When you are searching for France education loans, there are two basic choices: Both of these are offered by public banks, private banks, and non-banking finance companies. What’s a Study Loan for France Without Security? An unsecured loan is a student loan that doesn’t require you to pledge any collateral. These loans are suitable if you don’t have any financial assets to offer to the lender as security. Since the risk to the bank or institution is higher, non-collateral education loans have more stringent eligibility criteria and higher interest rates, especially in the case of NBFCs. Unsecured loans by PSUs have a limit of INR 7.5 Lakhs, which typically is not enough to cover all expenses. Key Features of an Unsecured Education Loan for France Repayment Period - If you opt for a non-collateral education loan for France from a private bank, the repayment period is 10 years. For an NBFC, the period is the same, i.e. 10 years. There is a probability of extending the loan repayment period if you take GyanDhan’s guidance. Because we partner with lending institutes like SBI, BOB, Avanse, Axis and ICICI, we can help you get a tailored loan that fits as near to your requirements as feasible. Processing Time - A private bank takes 7-10 working days to process an unsecured educational loan. In comparison, NBFCs require just 3-4 days. At times, the processing time is longer. GyanDhan’s loan counsellors can help reduce it by getting in touch with the bank’s or NBFCs upper management directly and hastening the process. Expenses Covered - If you get an education loan without collateral for France from a private bank, about 7.5 lakhs of your expenses will be covered except for few colleges where unsecured loans up to 40 Lakhs are available. In the case of NBFCs, the costs covered is up to 25 lakhs. Co-applicant Income Requirement - With private banks, a co-applicant should have a minimum income of Rs.35,000 per month. The amount is slightly lower for NBFCs at Rs. 25,000 per month. Common Decline Reasons - If the course you pick in France is ineligible or the income of the co-applicant is insufficient, then banks and NBFCs may decline your educational loan without collateral. Documents Required - The exact document checklist for an unsecured education loan varies from lender to lender. In general, the supporting documents required are previous mark sheets and degrees, the letter of enrolment, KYC documents, income proof and bank statements, among others. Request a call back from our educational loan experts to get a complete checklist of required documents. Lending institutes are strict on paperwork. Even one absent document can skew their decision to the negative end. It is why we advise every student to get in touch with GyanDhan. When you take our help, we increase the possibilities of loan approval by as much as 50%. Additionally, as partners to leading banks and NBFCs, we speed-up the loan sanction process. What’s an Education Loan for France With Security? Secured education loans require some form of a financial asset as collateral to the lender, e.g. LICs, FDs, or land, etc. It acts as security in case the applicant is unable to repay the loan. The biggest advantage of education loans with collateral is that they sanction a much higher amount than unsecured loans. Key Features of a Secured Education Loan for Study in France Repayment Period - 15 years for PSU, 10 years for private banks and 10 years for NBFCs - that’s the repayment period for secured education loans for France. Processing Time - In descending order, the time taken to process a loan is 15-20 working days for public banks, 10-12 working days for private banks and 7-10 days for NBFCs. Expenses Covered - 100% of expenses are covered by a secured education loan from an NBFC. Public banks offer to encompass 90-100% of the costs, and private bank loans include only 85% of the expenses incurred for some universities and only up to 7.5 lakhs for other universities. Common Decline Reasons - Both public and private banks most commonly reject education loan applications due to poor CIBIL score. Lack of proper paperwork on the collateral offered is another reason. For NBFCs, the most prevalent causes are weak credit history and inadequate income. Documents Required - Academic records, KYC documents, the fee structure of the college in France, and enrolment confirmation are few of the papers to be submitted by the student. The co-applicant of secured education loan has to file wide-ranging paperwork on the collateral, KYC documents, proof of income, etc. Again, the precise documents for secured student loan fluctuate. Intentionally or unintentionally, not submitting a document lowers your likelihood of loan approval. GyanDhan evens those odds by providing you with a customised list of all the documents required by the lender of your choice. Now that you have a comprehensive view of the two varieties of education loan for France study, we can move on to a degree-wise view. If you’re opting for collateral loans, the loan amount will depend on the value of the property and not on the course or college. The loan can be availed for any course - undergraduate, post-graduate or diploma. Here are the details of education loan with collateral for France for all the courses: Education Loan With Collateral For All Courses Features Public Banks Private Banks NBFCs Example Lenders SBI, BOB Axis Bank Avanse, Incred Loan Amount (INR) Upto 1 crore Upto INR 60 lacs Upto INR 50 lacs Interest Rate Range 8.85% - 10.25%* 11% -13.5%* 12%-14% Processing Fees (INR) 11800 Upto 17500+GST 1-2% of Loan Amount Payment During Study Period None Simple Interest Simple Interest *Interest Rates as on Nov-15-2019 Below mentioned are all the unsecured study loan options for a Bachelor’s or Master’s course in France. Undergraduate Courses in France What are your Unsecured Educational Loan Options for Bachelor’s/ UG Diploma in France? Educational Loan Without Collateral Features Public Banks Private Banks NBFCs Example Lenders SBI, BOB Axis Bank Avanse Loan Amount (INR) Only up to 7.5 Lakhs, the chances of approval is very less Only up to 7.5 Lakhs, the chances of approval is very less Up to 25 Lakhs, If the co-applicant income is good Interest Rate Range 10%-11%* 13%-15%* 14%-16%* Processing Fees (INR) 0 Rs. 15000/- (refundable) 1%-2% of the loan amount Payment During Study Period No Yes Yes *Interest Rates as on Nov-15-2019 Get Free Admission Counselling For France Apply Here Post Graduate Degrees in France What are the Unsecured Educational Loan Options for MS/MBA in France? Educational Loan Without Collateral Features Public Banks Private Banks NBFCs Example Lenders SBI, BOB Axis Bank Avanse, Incred Loan Amount (INR) Only up to 7.5 Lakhs, the chances of approval is very less For few selected institutes: 40 Lakhs For rest, Up to 7.5 Lakhs Up to 40 Lakhs, based on the income of the co-applicant Interest Rate Range 10%-11%* 12%-15%* 13%-15%* Processing Fees (INR) 0 Upto 20 lakhs : Rs. 15000/- (refundable) More than 20 lakhs : Rs. 750/- on every lakh above 20 lakhs 1%-2% of the loan amount Payment During Study Period No Yes Yes *Interest Rates as on Nov-15-2019 What are Your Unsecured Educational Loan Options for PG Diploma / Others in France? Educational Loan Without Collateral Features Public Banks Private Banks NBFCs Example Lenders SBI, BOB Axis Bank Avanse, Incred Loan Amount (INR) Only up to 7.5 Lakhs, the chances of approval is very less Only up to 7.5 Lakhs, the chances of approval is very less Up to 25 Lakhs, based on the income of the co-applicant Interest Rate Range 10%-11%* 13%-15%* 13%-16%* Processing Fees (INR) 0 Rs. 15000/- (refundable) 1%-2% of the loan amount Payment During Study Period No Yes Yes *Interest Rates as on Nov-15-2019 The Last Few Key Points As you read through the article, it becomes evident that the hunt for an education loan for France is arduous. First, you have to choose between the three types of lenders – PSU, private bank and NBFC. Then you have to compare margin money, moratorium time, monthly interest payments (which you can also do using this customizable EMI calculator), etc. on different loans to find the most affordable option. Getting a loan for further studies in France gets even more complicated because it differs slightly. Unlike some other countries, French universities don’t require financial proof demonstrating you can afford to study there when applying to colleges. The evidence of sufficient funds is expected when you begin the student visa for France procedure. This pre-visa disbursement makes a lot of officers hesitant in granting the loan. How do you get a loan sanctioned without this hurdle (or any other) cropping up? You take the assistance of GyanDhan. We keep the loan officer informed of all the requirements of the French embassy and university, ensuring that the prospects of loan rejection are as low as possible. If you are still confused on the most suitable loan for France, then get in touch with our loan counsellors. They’ll guide you at every step of the way.
This is a companion discussion topic for the original entry at https://www.gyandhan.com/blogs/education-loan-options-for-france