Published date: 29 Jul 2020 Updated on: 29 Jul 2020 If there is any country that has truly captured the pulse of the start-up and entrepreneurship culture, then it surely is Spain with Madrid and Barcelona being touted as the next Silicon Valley. Along with this, the country is also known for its top academic quality and innovation in technology and is, therefore, the latest hot destination for international students. The question now comes - Is studying in Spain expensive or cheap for international students? What are the options when it comes to education loans for studying in Spain? Which loans are easier to get? We will answer all the questions in this blog. What is the Cost of Studying in Spain? Let’s first have a look at the cost involved in studying in Spain before getting into the financing options. Higher education in Spain for international students is comparatively cheaper than studying in the UK and the US. The average cost of studying in top universities like the University of Madrid and the University of Barcelona is between 2,000 and 3,000 EUR/year (INR 1.7 lakhs to INR 2.6 lakhs per year). In stark contrast, the average cost of studying in a US university like the University of Chicago is 13,500 – 39,500 USD/year (INR 10 lakhs to 29 lakhs). The cost of living in Spain lies between 900 and 1100 EUR (INR 78k to 95k). Therefore, studying in Spain is actually a much cheaper investment compared to the US and the UK. However, if you are running short of finances to fund your studies in Spain, considering the fact that studying abroad is still a substantial investment, you can certainly apply for an education loan. Here we list down the education loan options available to you for studying in Spain. What are the Education Loan Options for Spain? You have two types of education loans to consider while you think of financing your education in Spain - Secured and Unsecured. Private & public banks and NBFCs like SBI, Bank of Baroda, Axis Bank, Avanse, and Incred offer these education loans but at different rates and T&Cs. What are the Secured Education Loan Options for Studying in Spain? Secured loan/with collateral education loan, as the name suggests, requires you to submit collateral against the loan you take. The collateral can be either a fixed deposit or any immovable property. SBI, Bank of Baroda, Axis Bank, Incred, Credila, and Avanse provide collateral education loans for Spain. Collateral education loans for Spain have lower processing fees and rates of interest. If you are applying for a secured loan, you can easily get one from public and private banks and NBFCs. Secured Education Loans For Spain 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 Studying in Spain? Unsecured education loans do not require a collateral against the loan you take. It is mainly the private banks like Axis and NBFCs like Avanse, Incred, and Credila providing unsecured education loans. Public sector banks do not provide unsecured education loans. Unsecured loans for Spain have higher processing fees and interest rates. Unsecured Education Loans For Spain Features Public Banks Private Banks NBFCs Example Lenders SBI, BOB Axis, ICICI Avanse, Incred, Credila Loan Amount - Up to INR 40 lacs Up to INR 20 lacs Interest Rate Range - 11.5%-13% 12%-14% Processing Fees - INR 750 on Each Lack Above INR 20 Lakhs 1%-2% of the Loan Amount Repayment Period - 20 Years 10 Years Processing Time - 5-7 Days 4-5 Days Expenses Covered (including blocked accounts) - 85% 100% Common Decline Reasons - Incomplete Documents, Low CIBIL and Income Incomplete Documents, Low CIBIL and Income Co-applicant Income Requirement - More than INR 35K 35K Number of Colleges Supported - 1-2 - What Are The Benefits Of Applying For An Education Loan For Spain Through GyanDhan? Customized Terms and Conditions - If you apply for an education loan for Spain via GyanDhan, you can also request an extension of the repayment period. We will raise the request to the bank officials on your behalf and ensure that the extension request is accepted. Therefore, you can enjoy customized terms and conditions on education loans if you apply for a loan through us. Expedited Sanctioning - We try to get your loan approved in the shortest period of time. However, in the case of any delay, we contact the bank officials and ask them to expedite the loan sanctioning process as soon as possible. Additionally, if you require your education loan on short notice, for example, due to visa reasons, we can also get your loan sanctioned in two days. Addressing Low CIBIL Score - We also try to get your loan application approved if you have a low CIBIL score. A low CIBIL score does not necessarily have to do with default payments from your side; your credit score may be low due to delay from the bank's side in updating your payments. We help you in such cases by approaching the bank officials and bringing these discrepancies to light. We don’t let such glitches, which are otherwise completely avoidable, hinder the sanctioning of your loan. Assistance in Documentation and Collection - GyanDhan also provides you with a specific list of documents you will have to submit along with your application. This list will be the final and absolutely unique to your profile, therefore, you will be able to submit all the documents in just one go without getting a call from the banks time-to-time later to submit more documents. Also, if you apply for a loan via GyanDhan, you will not have to go to the lender to submit your documents. GyanDhan’s relationship managers or bank officers will come to your premises and collect your documents from your doorstep. While collecting the documents, they will also check if all the documents have been submitted or not, so that if there is a missing or faulty document, you will be able to fix the problem right then and there. For NBFCs, you can simply upload documents on GyanDhan’s online portal. Which Education Loan is the Best for Studying in Spain? For education loans for Spain or any loan for that matter, GyanDhan always suggests students consider a secured education loan from a public sector bank as their first preference. Even if you don’t have collateral to submit against your loan, you can opt for third-party collateral. The next best option is an unsecured loan from a private bank. Compared to a loan from NBFC, an education loan from a private bank is much cheaper in terms of processing fees and interest rates and also entitles you to a number of tax benefits. An education loan from NBFC should always be the last option because such loans have the highest processing fees and interest rates. What Factors Need To Be Considered While Taking An Education Loan? An education loan should be chosen after taking into account a lot of parameters. What we mentioned above is a standard, however, what is a suitable loan for you will depend on a lot of other crucial factors: Interest Rate, Processing fee & Time, Margin Money, Moratorium Period, Tax Benefits, Loan Duration, Expenses Covered, Prepayment terms and conditions. You need to check if each of these parameters suits your convenience, only then should go for a particular loan. How Can GyanDhan Help You? Below we list down how you can carry out the application process for an education loan for Spain with the help of GyanDhan: Firstly, you select the check your loan eligibility after which you will receive a call from GyanDhan’s team. After helping you to select the best loan option, we will also assist you in filling the application form. You will be given the list of loan application documents. We will also collect the documents from your place. After submitting all the documents, you will have your loan application processed within just 5 to 6 days. In case the lending institution raises any problem, we will immediately get in touch with the bank and propose effective solutions. We will make sure that none of these problems hinder the loan sanction. Once the loan is sanctioned, we will also help you get a pre-visa disbursement of the loan. We will also see till the end that the disbursements are being made on a timely basis. Get Secured / Unsecured Loan For Spain From Gyandhan Arrange A Call Back From An Expert By Filling Up This Form At GyanDhan, our sole purpose is to make the otherwise complicated process of loan application easier and hassle-free for you. If you want a low-cost education loan for Spain minus all the struggles, get in touch with us. Check your loan eligibility here to get your education loan for Spain and get a call back from us. Do note all our education loan assistance services are provided for free of cost.
This is a companion discussion topic for the original entry at https://www.gyandhan.com/blogs/education-loans-for-spain