Education Loan for Diploma Courses to Study Abroad in 2024

The diploma courses are short-term courses that are designed in a way to specifically focus on on skills. The learnings in the diploma course are majorly based on practical skills. For those who want to keep the duration of their education abroad shorter or do not want to pursue a traditional undergraduate or postgraduate degree, a whole range of diploma courses abroad programs exist. To fund these courses, there are several banks and NBFCs in India that provide education loans for diploma courses abroad. 

Around the world, there are many institutions and universities of higher education that offer diploma courses and certificate programs that usually span for either one or two years. If you have cleared your higher secondary school examinations, you can pursue a Bachelor's diploma. In the same way, qualified graduates can proceed to study PG diploma courses abroad. In this blog, we will help you understand how you can get an education loan for diploma courses as per your needs. We understand that studying abroad can be expensive thus we present you with this guide on how to get an education loan for diploma courses. 

What are the Different Diploma Courses Offered Abroad?

The names of diploma courses vary in different countries. They are also named Graduate Diploma, Post-Graduate Diploma, Advanced Diploma & more. In all cases, a diploma qualification has a value that enables students to take up a job or even go for further studies. When it comes to choosing a diploma course, is an unnerving task for students as short courses offer a wide range of subjects for study. The course duration depends on the country, course, and college. Usually, the diploma in abroad include:

• Undergraduate Diploma Courses: Short-term programs for high school graduates providing practical skills and knowledge in a specific field for quick workforce entry. 
• Postgraduate Diploma Courses: Advanced specialized programs for degree holders aiming to enhance expertise or shift career paths in a specific area.

What are the Major Benefits of Doing Diploma Courses Abroad?

Pursuing a diploma course abroad has several benefits. Some of them are:

• Short Period: the diploma courses done abroad are short-term courses that are done to learn a specific skill. On average a diploma course ranges between 1-2 years only.
• Increased Employability: As mentioned diplomas are majorly based on learning a specific practical skill thus it can be said that it is highly job-oriented and delivers hands-on training making students job-ready.
• Increased Exposure: It makes students experience a new culture with the help of inclusive learning and practical training under different people. 
• Learn & Earn: The diploma course sometimes allows students to have some time for themselves thus in a way it allows students to learn to work and study independently.
• Low Cost: Typically cost less than the corresponding degree courses

Which Countries are Best to Study Diploma Courses Abroad?

Studying abroad prepares you to take up a job anywhere around the globe and this remains the focus of international study programs. Studying overseas diploma courses in countries that are technologically developed gives one a wide array of opportunities and new viewpoints that open up for students. For foreign diploma courses, students choose countries that are more suited for the purpose. The best countries to study diploma courses abroad are:

• Canada
• United Kingdom (UK)
• United States of America (USA)
• Australia
• New Zealand
• Ireland

Read About: GRE Scholarships for Indian Students in Canada.

Types of Education Loans for Diploma Courses Abroad

Education loans that are offered for overseas diploma courses can be broadly segmented into two types - Secured Loans and Unsecured Loans. 

Unsecured Diploma Education Loan:

An unsecured loan is a loan without collateral. In these types of loans, the borrower does not need to pledge any tangible or intangible asset. These education loans have a moderately shorter repayment period. Though, their interest rate is higher than that of secured loans. In addition to this, their rate of approval is somewhat lower than that of a secured loan. It must be noted that government banks and private-sector banks do not offer without collateral education loans for diploma courses for more than INR 7.5 Lakhs which is usually not sufficient given the total expense.

Secured Diploma Education Loan:

A secured loan is also termed a loan with collateral. In these loans, the borrower has to pledge a tangible or intangible asset. Examples of assets are immovable property, insurance policy, FDs, etc. The lender considers this collateral as a security against the amount and can use this to recover the loan amount if there is a case of default. A loan with collateral has a lower interest rate and a longer repayment period as well. Some of the other benefits of taking a secured loan are no requirements for co-applicant’s income, no repayment during the study period, and a higher rate of approval.

Different Types of Lenders that offer Education Loans for Diploma Courses Abroad?

There are mainly 3 types of lenders that provide education loan to study diploma courses abroad:

• Public Sector Banks: Government-owned banks offer education loans for diplomas with lower interest rates and longer repayment terms, providing a secure and reliable option for students.
• Private Sector Banks: These banks provide education loans for diplomas with quicker processing times and more flexible terms, though often at slightly higher interest rates compared to public-sector banks.
• Non-Banking Financial Companies: NBFCs offer education loans for diplomas with more flexible eligibility criteria and faster disbursement, catering especially to students who may not qualify for traditional bank loans.

General Eligibility Criteria for Education Loan for diploma

Securing an education loan for a diploma can be a crucial step in achieving your educational goals. Here are the general eligibility criteria you need to meet:

• Citizenship: Must be a citizen of the applying country.
• Age: Typically 18-35 years old.
• Education: Completed high school (12th grade) or equivalent.
• Admission: Proof of admission to a recognized diploma course.
• Academics: Consistent academic records.
• Co-applicant: Requires a co-applicant with a stable income.
• Collateral: May need collateral or a guarantor for higher loan amounts

How to Get Education Loan for Diploma Courses Abroad?

Below is a step-by-step process that can help you get education loan for diploma courses abroad. These steps are - 

• Check your loan eligibility.
• Get expert education loan counseling from GyanDhan’s counselor to compare the education loan products. 
• Choose a lender and apply online on our platform.
• Avail of your customized document checklist.
• Submit the required documents either online or get them picked up from your home by our representative.
• Get the property & other legal evaluation done (in case of loans with collateral).
• Get your loan sanction letter once the lender approves the loan.

How can GyanDhan help in Education Loan for Diploma?

GyanDhan has partnered up with top education loan lenders in the market and can help you get an education loan without any hassle. The loan process for abroad diploma courses is streamlined so that you can get an education loan without running from pillar to post. Your assigned loan counselor will be available to you all through the loan process to keep you updated on your loan status. Also, if any problem erupts in the loan procedure, it will be swiftly resolved by them, through leveraging our partnership with the lender. GyanDhan offers loan assistance free of cost to the students. To apply, check your loan eligibility now!

Also Read:

• Educational Loan Options for UG Diploma in Canada
• Educational Loan Options for PG Diploma in Canada
• PG Diploma in Canada: A Detailed Overview
• 5 High-Paying Degree Courses in the UK 
• SBI Education Loan for abroad