Published date: 04 Sep 2020 Updated on: 04 Sep 2020 Known as the Land of the Midnight Sun, Sweden is a preferred abroad education destination for students who wish to make a career in the field of science and technology. Sweden is home to some of the biggest companies like Erricson, Volvo, Ikea, H&M, Spotify, Electrolux besides being one of the most beautiful European countries. Study in Sweden comprises of research-oriented and impart innovative education. As many as 12 Swedish universities are in the QS World University Rankings. If you are also interested in studying in this country and looking for a Sweden education loan, you can check your loan eligibility and check whether you are eligible to take a study loan. So without further ado, let’s take a deeper look at the cost of education from Sweden and the available loan options. What Is The Cost Of Studying in Sweden? Sweden has some of the best universities for medicine, arts, science, and technology. It is a testament to this fact that an astounding number of Nobel prize winners are from Sweden. Karolinska Institute, Lund University, Uppsala University, Stockholm University, and the University of Gothenburg are just some of the top universities in Sweden with a world-class education and affordable tuition fees. The average cost of tuition for a medical program in Karolinska Institute is SEK 180,000 per year (~ INR 15 lakhs). While on the other hand, Stockholm University has set the tuition fees for international students pursuing programs like Humanities/Social Science/Law is SEK 90,000 per year (~INR 8 lakhs) and tuition fee for science programs is SEK 140,000 per year (~ INR 11 lakhs). To promote and boost research-intensive programs, there is no application or tuition fee for Ph.D. programs, even for international students. Only accommodation and living expenses would have to be borne by the students, which can be further reduced with the help of financial assistance from the university. The cost of living in Sweden will depend if you are staying in big cities like Stockholm or Gothenburg or comparatively smaller cities like Lund or Uppsala. International students can, however, expect to shell out SEK 2500 - 6500 as monthly rent (INR 21,000 - INR 54,000). While there are several Sweden scholarships and financial aid, it might not cover the entire cost of education in Sweden for international students. There are several borrowing options available to students to pursue their education from one of the top universities in Sweden. Need Expert Assistance On Sweden Education Loan? Fill this form and get in touch with an expert What Are The Education Loan Options Available For Sweden? The types of lenders that students can approach for an education loan for Sweden are - Public Sector Banks Private Banks Private Lenders, also known as Non-Banking Financial Companies (NBFCs) Students can apply for 2 types of education loans, according to their needs and requirements - Secured Education Loan Unsecured Education Loan What Are The Secured Education Loan Options For Sweden? Secured Education loans are loans where the collateral is pledged, which can either belong to the borrower or a third-party. With collateral, the lenders find it easy to give out loans of high volume and lower interest rates. Collateral can be immovable property or liquid assets. Getting a secured education loan is relatively easier if the value of the property is more than the required amount. However, there are several other factors that might determine the approval of the loan such as the collateral documents, student’s profile, etc. Let’s look at some of the key features of a Secured education loan - Features Public Banks Private Banks NBFCs Example Lenders SBI, BOB Axis, ICICI Avanse, Incred, Credila Loan Amount Up to INR 1.5 cr Up to INR 60 lacs Up to INR 40 lacs Interest Rate Range 8%-9% 11%-13% 12%-14% Processing Fees INR 11,800 + Property Evaluation Charges 1%-2% of the Loan Amount 1%-2% of the Loan Amount Payment During Study Period None Simple Interest Simple Interest Repayment Period 15 Years 20 Years 10 Years Processing Time 90%-100% 85% 100% Common Decline Reasons Incomplete Documents, CIBIL Incomplete Documents, Low CIBIL and Income Incomplete Documents, Low CIBIL and Income What Are The Unsecured Education Loan Options For Sweden? Unsecured education loans are loans where there is no collateral needed. The basic requirements of an unsecured education loan is an earning co-applicant with a good CIBIL score. The chances of approval in unsecured loans are generally high as they are hinged on factors like student’s profile, co-applicant’s financial profile, future potential of the student, etc. Getting an unsecured loan for Sweden would be extremely difficult in the case of public sector banks. However, private banks and NBFCs give out unsecured education loans for Sweden rather easily. Let’s look at the Unsecured Education Loan options for Sweden - Features Public Banks Private Banks NBFCs Example Lenders SBI, BOB Axis, ICICI Avanse, Incred, Credila Loan Amount - Up to INR 20 lacs Up to INR 20 lacs Interest Rate Range - 12%-14% 12.5%-14% Processing Fees - INR 15K (Refundable + GST) 1% of the Loan Amount Payment during the Study Period - Simple interest Simple interest Repayment Period - 20 Years 10 Years Processing Time For the Loan - 5-7 Days 4-5 Days Expenses Covered (including blocked accounts) - 85% 100% Common Decline Reasons - Low income, low CIBIL score Low income, low CIBIL score Co-applicant Income Requirement - More than INR 35K More than INR 35K Which Education Loan Is The Best For Studying in Sweden? This is a dilemma that students often face while applying for the required funds. The above tables are proof enough that secured education loans are more advantageous than unsecured education loans. However, for the benefits of the reader, we will discuss the merits of both types of loans - Secured education loans offer higher loan limits to the students. Even though higher education from Sweden will not make you go bankrupt, it is better to have a higher sanctioned amount than you need to cover all bases. The sanctioned amount is the amount you are eligible for and not the amount you actually use. Refundable processing fees is one of the eye-catching features of secured education loans. A lower interest rate of a secured education loan will further help you manage the financial debt of an education loan. Unsecured education loans are approved swiftly and with fewer hiccups. Since 100% of the expenses are covered on taking the education loan from NBFCs, students often prefer NBFCs for an unsecured education loan. However, NBFCs are private lenders and should be kept as a last resort. These are general takeaways from the above-mentioned tables. However, students should select a loan that suits their needs and individual requirements. Below-mentioned are some of the key points on which the loans should be compared - Loan Amount Interest Rate Processing Fees Expenses Covered Margin Money Moratorium Period Tax Benefits Repayment Period Why Take A Loan From GyanDhan? A lot of myths and misconceptions contribute to the confusion surrounding education loans. We, at GyanDhan, make sure the process of education loans does not overwhelm the students in any way. Students can apply for the loan on GyanDhan’s portal after checking their loan eligibility. Discuss the available loan options with our executive to make sure you are opting for the loan that best suits your profile. After a successful loan application, you will get a customized document checklist so that you do not miss any important documents. This step also helps students in arranging the required documents on time and reduce delays. The next step is to submit the required documents. We will schedule a doorstep document pickup time. Our Relationship Officer will check the list and make sure there is no document missing before the application goes forward. In the case of NBFCs, the required documents can be uploaded online along with the loan application, thus saving time. The entire process can be completed from the comfort of your home. In case of any glitch or hiccup, our Education Loan Counselor will contact the relevant officials and get the issue resolved without delay. Additionally, the loan application is processed swiftly. We ensure that the loan is processed within five to six days. In urgent cases, we can also work to get them sanctioned in two days. You can stay up-to-date on your loan status by visiting your GyanDhan account dashboard. We provide our services for a lifetime. We also assist students with repayment and refinancing of the loan, if needed. We also help students with Pre-visa disbursement if it is required. Our education loan service is aimed at making the process efficient and hassle-free. So get in touch with us now and secure funds to study in Sweden.
This is a companion discussion topic for the original entry at https://www.gyandhan.com/blogs/education-loan-for-sweden