Education Loan for Sweden

Secured Education Loan Options For Sweden

Secured education loans are those loans that require borrowers to pledge some sort of security against the loan amount. That security is known as a Collateral. It can be an immovable property or liquid assets such as fixed deposits or government bonds. Secured education loans are offered by public banks, private banks, and NBFCs, but public banks are often considered the preferable choice due to their reliability and ability to provide lower interest rates.

 

Secured education loan - overview

Feature	SBI	UBI	BOB
Loan amount	Up to INR 1.5 cr	Up to INR 2 cr	INR 1.5 cr
Interest rate	10.65 - 11.15%	9.8 - 10.15%	10.14 - 11.15%
Margin money	10 - 15%	10 - 15%	Nil
Repayment tenure	15 years	15 years	15 years
Processing fees	INR 10,000 + GST	INR 5,000	INR 10,000 + GST

Unsecured Education Loan Options For Sweden

Unsecured education loans are those loans that do not require collateral instead they require a co-applicant with a stable monthly income and a good CIBIL score. A co-applicant can be the applicant’s parents, siblings, or a close relative. Unsecured loans are offered by public banks, private banks, and NBFCs.

Unsecured education loan - An overview

Major Factors To Consider For A Student Loan In Sweden

Here are some of the major factors to be considered before applying for education loan in Sweden -

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  A co-applicant is a must for filing the loan application.
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  Co-applicant can be a blood relative, friend, immediate or close family member, friend or guardian with a stable financial situation.
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  For an unsecured loan, you and your co-applicant CIBIL score should be in accordance with the bank / NBFC’s policies.
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  For a secured loan, please note that you have to submit all the relevant and required documents of the collateral.
• 
  All the financial documents of applicants’ as well as of co-applicants’ are required, including ITR if the co-applicant is self-employed.

Expenses covered by Education Loan in Sweden

The expenses covered under education loans by various lenders include the following

Eligibility criteria of Education loan for Sweden

The eligibility criteria for an Indian student to secure an education loan to study in Sweden include the following:

• The student should be an Indian citizen.
• The minimum age of the student should be 18 years.
• The student should have secured admission to a recognized university/ college in Sweden.
• The student should have a good academic record.
• The student’s intended course should be a professional/ technical graduation degree course/post-graduation degree like MCA, MBA, MS, or diploma course.

Application Process of Education Loan for Sweden

The documents required for an education loan for Sweden depend on several factors, primarily your academic and professional history, and your co-applicants financial and credit profile.

Applicant’s documents:

• Identity proof: PAN/ Passport/ Driver’s License/ Voter ID card or government-issued identification document.
• Education loan application form.
• Address proof: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill/ Driving License/ Aadhaar card.
• Visa documents
• Statement of expenses.
• 2 passport-size photographs.
• Loan A/C statement of one year (if applicable)
• Bank account statement of the student (if applicable)

Academic record:

• 10th standard mark sheet
• 12th standard mark sheet
• Undergraduate result (semester-wise)
• Entrance exam results (e.g. GMAT, GRE, TOEFL, etc.)
• Proof of admission: admission letter (A conditional admission letter is also applicable).

Co-applicant’s documents:

• Identity proof: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document.
• Address: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill or copy of Driving license/ Aadhaar card.
• 2 passport-size photographs.
• Bank account statement of the co-borrower/guarantor, for the last 6 months (in case of takeover of education loan).
• If any previous loan is from other banks/ lenders, then the loan A/C statement of 1 year.
• Legal documents of the collateral/ property documents.

Income proof for salaried co-applicant/guarantor:

• Salary slips for the last 3 months.
• Copy of Form 16 of the last 2 years or copy.
• Bank account statement for the last 6 months (Salary account).
• Brief statement of assets & liabilities of parent/ guardian/ other co-borrower.

Income proof for self-employed co-applicant/guarantor:

• Business address proof.
• Last 2 years IT returns ( If IT Payee).
• TDS certificate (Form 16A, if applicable).
• Certificate of qualification (for C.A./ doctor and other professionals).
• Brief statement of assets & liabilities of parent/ guardian/ other co-borrower
• Bank account statement for the last 6 months.

Repayment of Education Loan for Sweden

The Repayment tenure of an education loan is one of the key factors that a student should keep in mind before selecting a lender. Most lenders require borrowers to pay simple interest or partial simple interest during the moratorium period.

Also, international students in Sweden have the flexibility to work while pursuing their studies, with no official restrictions on the number of hours they can work. Moreover, most universities offer career services to assist students in securing part-time employment opportunities during their academic journey. Working part-time can help students earn 8000-10,000 SEK per month with a 20-30% tax reduction in Sweden. This income helps them manage their expenses and plan their repayment early. To plan your repayment better you can also use the estimate future earning tool by GyanDhan, which helps you gain a rough idea of your future earnings and enables you to plan your repayment for the future.

Furthermore, students have the option to extend their residence permit by six months for searching for a job or to start a company, followed by the opportunity to apply for a work permit. As the birthplace of renowned multinational corporations like IKEA, Volvo, Ericsson, and H&M, Sweden provides an ideal platform for students to launch their careers. 

How to Apply for an Education Loan for Sweden?

Securing an educational loan for Sweden is a simple process. Nevertheless, handling multiple lenders separately is a daunting task. To your rescue, GyanDhan is here. We provide assistance in obtaining education loans for studying in Sweden, with a streamlined process through the following steps:

Step 1: Check loan eligibility

Step 2: A dedicated loan counselor will be assigned to you.

Step 3: Loan counselors will evaluate your profile and suggest you the lender.

Step 4: After starting your loan application, they will send you a customized document checklist.

Step 5: The lender will verify your documents, this can take up to 7-10 days. Once approved, sign the loan agreement and monitor progress through GyanDhan's user dashboard.

Step 6: Initiate the loan disbursement according to the lender's procedures, with funds being directly deposited into your account or to the university.

Best Education Loan Option for Sweden

The best education loan option varies according to each student's profile and requirements. Students can make a well-informed decision by evaluating the following scenarios. These are general takeaways. However, students should select a loan that suits their needs and individual requirements. 

• Secured education loans offer higher loan amounts to the students. 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. 
• A lower interest rate on a secured education loan will further help you manage the financial debt of an education loan. 
• Refundable processing fee is one of the eye-catching features of secured education loans. 
• Unsecured education loans are approved swiftly and with fewer hiccups.
• Since 100% of the expenses are covered by taking an 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.

Choosing the right education loan from all the choices out there is a big decision that affects your future financial planning. So, to help you navigate through all the options available, GyanDhan is here to help. We offer personalized guidance and counseling services to students. This assistance helps them choose the right lender amongst the various loan options available. From offering a tailored document checklist to acting as your personal coordinator with the lender, we have got it all covered. To start your abroad education loan journey for Sweden, check your loan eligibility and leave the rest to us!

Read also:

• How to get an education loan with a low CIBIL score?
• How to plan your education loan repayment?
• Documents required for an education loan: A detailed guide

Frequently Asked Questions