A large number of international students move to Italy for their further education. The country is well known for its rich history of higher education. Most of the study programmes are taught in the Italian language but the number of English language programmes is also growing with each passing year.
The biggest challenges international students have to deal with for studying in Italy is an arrangement for funds. Cost of studying in Italy can be huge and everyone cannot afford it. So in this article, we are going to present you complete information about Education Loan to Study in Italy.
International Students looking forward to studying in Italy with the help of an education loan must start their process at least 7 to 8 months before their study program begins. You may also start your loan application process with your university admission application. Here are the 8 simple steps you need to follow for getting for an education loan for Italy:
Now we will go deeper into the above-mentioned step in detail. Read each step thoroughly and take note of the important points, as it is a big decision which will affect your further life.
Your initial step towards getting an international education loan for Italy should be Research. You should explore different banks and loan options. But before you research, there are few things you need to throw light on.
Factors to consider prior to applying for an education Loan
Before applying for a student loan to study in Italy, you should have a clear idea about how much money you will require and how much you are going to pay from your pocket. Other important factors are:
After considering the above-mentioned factors, check whether you are eligible or not for an education loan to Study in Italy. Here are the criteria:
Eligibility Criteria for education loan to study in Italy
Before applying, check whether you match the eligibility criteria to apply for the loan or not. Different money lending institutions follow different eligibility criteria. Here are the common eligibility criteria followed by most of the banks:
Every day there are several loan applications reach the banks and to top get your application approved faster, you can work on the following points to enhance your profile to qualify for the loan:
In the next step, you have to calculate the amount you will require to study abroad in Italy. Generally, an international education loan covers the total cost of a student’s education in Italy. For adding all the expenses, you should include the following:
Once you get your final amount, you have to check how much you will self-finance and how much amount of loan you will require from the bank.
Now the most important thing is you should get admission in the University of Italy. You have to show the proof that you are accepted by the Italian university by submitting a letter of acceptance. There are plenty of universities located in Italy for international students. Here are the top-ranking universities in Italy :
The list continues with a wide range of universities in Italy where you can pursue your higher education. You will get full information here: Universities in Italy
You should compare the different loan options provided by the different banks for studying in Italy and select the one which suits your needs. Compare the loans options provided by the different banks on the following parameters:
Each factor plays an important role, so take your time and come to a conclusion. If you finalise after paying close attention to all the factors, you can save a few Euros.
Here, you will legally start the process of applying. After finalising the bank and determining the loan amount, you have to fill the application form. It can be online or offline. Make sure to fill correct and accurate information in it.
You have to fill the details such as your name, parents name, address, date of birth, age, ID proof, course name, university name, duration of the courses, Income, Liabilities, employment details, tuition fees, other expenses, Details of security etc. Fill all the details correctly and recheck it before applying.
Along with the filled Loan Application Form, every applicant also needs to provide some necessary documents. The list of these documents required while applying for the loan are mentioned below:
Documents for Students (Primary Applicant)
Documents for Co-Applicants
Other Required Documents
As soon as your loan application is approved, the bank will issue a loan sanction document that includes various terms and conditions of the loan. The details mentioned in it are borrower’s name, agreed loan amount, the period of repayment, interest rate, the signature of both the parties, collateral security, additional charges etc. Read the Loan sanction document and if you agree with the terms and condition, sign it.
After signing and submitting your loan document, the bank will pay the loan amount to you as decided in the agreement. It may be in instalments or lump sum. Once you receive your amount, spend on the necessary expenses such as tuition fee, books and supplies, accommodation, purchase of laptop or computer etc. Don’t spend your money on the needless expenses.
Any property either movable or an immovable, deposited as a security in the bank for an education loan is collateral. The interest rate of education loans to study in Italy depends directly on collateral availability. Most of the money lending institutes demand collateral as security to reduce the risk involved in re-paying off the loan.
Instruments used as collateral:
Any liquid asset such as shares, bonds, Fixed Deposit.
Any immovable property such as land, house, any commercial property etc can be used as collateral.
Even life insurance policy, gold, mutual fund units, debentures etc can also be deposited as collateral.
How much can be borrowed against collateral?
The value of collateral required for an international education loan for Italy is very subjective. It varies from bank to bank. Moreover, the academic record of the student and their scope of future employment are also considered. Most of the banks ask for collateral security to reduce their risk.
There are a few important things bank will examine before granting loan:
The loans taken to study in Italy are to be paid in instalments. The amount to be paid in each instalment is mentioned in the loan agreement. Make sure to pay the instalments on time without delay.
The loan taken to study in Italy can be paid in instalments. The loan can be repaid within 12 -15 years depending on the loan amount. You should note that the repayment period and the instalment amount differs with the chosen institution and the amount of loan.
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