Education Loan For Switzerland

With a low crime rate and one of the best education systems in the world, Switzerland is home to world-class universities and research institutions, offering a diverse range of academic programs taught in multiple languages. Its renowned education system and stunning landscapes make it a highly desirable destination for international students.

However, the cost of living and tuition fees can be substantial. Thankfully, education loans with GyanDhan can provide a lifeline for those aspiring to pursue their academic journey in this picturesque country. Before delving into education loans, it's important to have a clear understanding of the tuition fees, cost of living, and potential funding sources.

Also read: Best education systems in the world

Top Universities in Switzerland 2024

The following is the list of top 5 universities in Switzerland:

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  ETH Zurich (Swiss Federal Institute of Technology Zurich): For many years, ETH Zurich has been acclaimed as the best university in Switzerland, and true to this acclaim, ETH Zurich is widely regarded for its engineering and technology courses and ranked as one of the best universities worldwide. Its reputation goes beyond that of the orthodox universities as it is well known for research and academic pursuit, especially in the fields of science and technology.

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  University of Zurich: Based on its high rankings in social sciences, humanities, law, and medicine, it is hardly surprising that the University of Zurich performs well in Switzerland and even in Europe and beyond.

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  EPFL (École Polytechnique Fédérale de Lausanne): Situated in Lausanne, EPFL has an enormous emphasis on natural sciences and engineering and attains a high ranking on the international outlook and research performance.

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  University of Geneva: This institution is thought to be one of the best in offering social sciences, law, and international relations courses thanks to its geographical location in Geneva, a city with many international organizations.

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  University of Basel: Founded centuries ago, it is the first and the most prestigious school in Switzerland focusing on life sciences and medicine modern research and international relations.

Cost of Studying in Switzerland

Tuition fees in Switzerland can vary significantly depending on the institution, level of study, and program. The average cost of studying an undergraduate and postgraduate program from a public university ranges between CHF 1200 to CHF 2500 per semester whereas from a private university, the same program can cost you somewhere between CHF 5000 to CHF 9500 or even more.

Top 5 QS ranked Switzerland universities 2023

Cost of Living in Switzerland

The cost of living in Switzerland is relatively high, especially in cities like Zurich, Geneva, and Lausanne. However, with setting up a proper budget and cost-cutting you can manage your monthly expenses.

Major Factors To Consider for a Student Loan in Switzerland

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

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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.
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  All the financial documents of applicant’s as well as of co-applicant’s are required, including ITR if the co-applicant is self-employed.

Types of Financial Aid For Students to Study in Switzerland

Several financial aids are available for international students who will study in Switzerland. Some of the critical ones are as follows:

Scholarships and Grants:

These kind of aid are not to be repaid and are offered to the students based on a number of criteria that may include academic excellence, financial need, or any other condition that is considered necessary. Following are examples of some of the financial aid:

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  Swiss Government Excellence Scholarships for foreign scholars and artists.

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  Canton Scholarships for Swiss citizens, refugees, foreign nationals residing in Switzerland, and Swiss citizens residing abroad.

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  Scholarships from foundations that provide funds for education and training

Switzerland has numerous undergraduate and postgraduate scholarships. Let us discuss some of the most prominent scholarships that Switzerland offers to foreign students

Undergraduate Scholarships:

Graduate Scholarships:

Education Loan Options for Switzerland

Pursuing your education in a country like Switzerland which is home to top-ranked universities that date back to the 1800s is a life-changing experience however the cost of studying in Switzerland is substantial. Fortunately, there are education loans available that cover all the study abroad expenses. From tuition fees to flight tickets, an abroad education loan has got it all covered.

Secured Education Loan Options For Switzerland

Secured education loans are loans where borrowers need to pledge some form of security as collateral against the loan amount. This collateral could be assets like real estate or fixed deposits. These loans are available from public banks, private banks, and NBFCs (Non-Banking Financial Companies). However, public banks are the preferred option because of their low interest rate, high reputation, and dependability.

Secured education loan for Switzerland - overview:

Unsecured Education Loan Options For Switzerland

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.

Also read: How to get an education loan with a low CIBIL score?

Unsecured education loan for Switzerland - An overview:

Expenses Covered Under Education Loan in Switzerland

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

Eligibility Criteria Education loan for Switzerland

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

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  The student should be an Indian citizen.
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  The minimum age of the student should be 18 years.

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  The student should have secured admission to a recognized university/ college in Switzerland.
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  The student should have a good academic record.

Documents required for education loan in Switzerland

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

Applicant’s Documents:

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

Academic Documents:

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

Co-applicants Documents:

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

Income Proof for Salaried Co-applicant/Guarantor:

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

Income Proof for Self-Employed Co-Applicant/Guarantor:

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

Also read: Documents required for an education loan: A detailed guide

Repayment of Education Loan for Switzerland

When choosing a lender for an education loan, the repayment tenure of the loan is a crucial consideration. Many lenders typically ask borrowers to make payments of simple interest or partial simple interest during the moratorium period.

Also read:

• 
  How to plan your education loan repayment?
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  Education loan without a parental income?

To ease your repayment and manage your expenses you have the opportunity to explore the option of a student job and dedicate a few hours each week to work. International students have the privilege of working up to 15 hours per week during the semester, and they can even work full-time during semester breaks. The compensation is quite substantial, ranging from CHF 25 to CHF 35 per hour. 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.

Application Process of Education Loan For Switzerland

Getting an educational loan for Switzerland is easy, but dealing with many lenders can be hard. That's where GyanDhan comes in. We make getting a loan to study in Switzerland simple with these steps:

Step 1: Check loan eligibility

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

Step 3: Loan counsellors 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 Switzerland

The best education loan choice depends on each student's situation and needs. To make a well-informed decision, students should consider the scenarios below. Remember, these are general ideas, and it's important to pick a loan that fits your own requirements.

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  Secured education loans provide more funds to students. It's a good idea to get a loan for a higher amount than you need, just to be safe. The amount you're approved for is more than what you'll actually use.

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  Lower interest rates on secured education loans can make managing loan payments easier. Also, secured education loans often come with a refundable processing fee, which can be appealing.

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  Unsecured education loans are approved quickly and with fewer complications.

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  Some students prefer NBFCs for unsecured education loans because they cover all expenses. However, NBFCs are private lenders and should be considered as a last option.

Selecting the best education loan option among the multiple options available is a significant choice that shapes your future financial plans. To simplify your path through these choices, GyanDhan is at your service. We provide personalized guidance and counselling to students, aiding them in identifying the ideal lender from the array of loan alternatives. From furnishing a customized document checklist to serving as your personal liaison with the lender, we handle every aspect. To start your journey toward securing an education loan for studying in Switzerland, check your loan eligibility and leave the rest to us!

Frequently Asked Questions