Switzerland is home to several most reputable higher education institutions of Europe. A lot of students from different corners of the world are accepted into universities in Switzerland each year.  25 percent of the Swiss population are coming from outside the country which proves bilingualism and multiculturalism have a deep presence in Switzerland.
 
Studying abroad is often more expensive than studying in the home country. Same should be dealt with Switzerland as well. International students face difficulty in arrangements of funds to study in Switzerland. This article aims to provide you with each minute detail of Education Loan to Study in Switzerland.

How to get the Education Loan to Study in Switzerland?

An education loan is one of the most major sources of higher education funding for most international students who wish to study in Switzerland. 
International Students should start their loan process minimum 6-7 months before their study program starts. Here are the steps you should follow for applying for an education loan:

  1. Research about the international education loan options provided by the different banks, check their eligibility criteria and document requirements.
  2. Calculate an approximate figure of funds requirements to study in Switzerland.  You should also estimate the amount you will self-finance and need to take a loan.
  3. Get a letter of admission from the respective university in Switzerland.
  4. You should compare all the suitable loan options provided by the different banks for covering the cost of studying in Switzerland and finalize the one which matches your needs.
  5. Once you are ready with your decision about the bank and the loan amount, you should fill out the education loan application form.
  6. Attach all the documents such as your  Identification document, birth certificate, salary slip, residency proof etc.
  7. Once your loan is approved by the bank, it will issue a loan agreement that includes various components of the loan. Read and sign it. 
  8. After signing, the bank will disburse the amount to you for your studies in Switzerland.

In the following part of the article, we will discuss these steps in detail. Each step is important to get an education loan which covers the cost of studying as well as doesn't put much burden on your further financial life. 

Research about the banks and loan options

Your first step will be researching. You should explore different loan schemes provided by different banks. But before you research, there are few points you have to take note of.

Major factors to consider before starting the process of education loan

Before applying for a student loan to study in Switzerland, you should have a proper estimation of how much money you will require and how much you are going to arrange from your pocket. Other important factors to take into account are:

  • Decide the university as well as the course you want to study in Switzerland.
  • Calculate the amount you will require during your studies in Switzerland.
  • Assemble all the documents you will require during the loan application.
  • Be ready with the guarantor or collateral. (as required)
  • Estimate the time of disbursement.
  • Make sure to apply for the international educational loan as soon as you get the confirmation from the university.

After considering these factors, check whether you are eligible for an education loan to Study in Switzerland. Here are the criteria:

Basic Eligibility Criteria

Before filling the loan application form, check your eligibility to apply for the education loan to study in colleges in Switzerland. Different banks follow different eligibility criteria. The common eligibility criteria followed by most of the banks are:

  • The applicant must have outstanding academic results.
  • The applicant must have a confirmed seat at the Swiss university.
  • The applicant must be admitted in a course that has been recognised by the funding institution.
  • The applicant must be above 18 years of age otherwise his or her parents will have to apply for the loan.

Improving Eligibility for an Education Loan

Every day there are several loan applications the banks have to deal with and to top the pile, you can work on the following points to strengthen your profile to qualify for the loan:

  • Securing high grades in the qualifying entrance exams.
  • Showcasing an excellent academic record.
  • Admission letter from a reputed college/university of Switzerland.
  • Strong financial background to ensure a timely repayment.
  • Presenting a promising future income generation.

Calculate the amount required to study in Switzerland

Now it’s time to estimate the amount you will require to study abroad in Switzerland. Generally, the cost of a student’s education in Switzerland is fully covered by an education loan to study in Switzerland. However, the loan amount can vary depending on the chosen bank and study program. While adding all the expenses, include the following expenses:

  • Tuition Fee:- The semester fee.
  • Mandatory Fees:- This involves expenses like student centre fees, student activity fees, recreation fees, residence hall activity fees, new student fees, etc. 
  • Rent of the apartment/ Student halls of residence
  • Food costs in Switzerland
  • Transportation costs: Expenses of airfare, parking permit, monthly bus/ train pass etc.
  • Monthly health insurance
  • Purchase of books, stationery and  laptop/computer
  • Other expenses required to support your stay and study in Switzerland.

Once you get your final amount, you have to check how much you will be able to arrange the funds on your own and how much loan you will need to take from the bank. 

Enrollment letter from the Swiss University.

You have to get an admission letter from the University of Switzerland to present as proof to the bank. You can apply to the swiss universities with all the documents required to get your admission confirmed. There are plenty of universities in Switzerland which welcomes international students each year. Here are the top universities in Switzerland:

  1. ETH Zurich - Swiss Federal Institute of Technology 
  2. EPFL
  3. University of Zurich 
  4. University of Geneva 
  5. University of Bern 
  6. University of Basel 
  7. University of Lausanne 
  8. USI - Università della Svizzera italiana
  9. University of St.Gallen (HSG) 
  10. Université de Fribourg 

The list continues with a broad spectrum of universities in Switzerland where you can pursue your higher education. These prestigious universities offer a variety of courses to international students. You will get full information here: Universities in Switzerland

Comparison of Education loan options

Here you have to sit calmly and compare the different loan options offered by the different banks for studying in Switzerland. After proper comparison choose the one which benefits you the most. Here are the parameters, you can check on to compare the loans options :

  • Interest rate
  • Expenses covered in the loan
  • Processing Fee
  • Loan margin
  • Loan duration 
  • Income tax exemptions
  • Loan processing time
  • Prepayment terms
  • Repayment Period

Each factor plays an important role. You should decide only after proper planning and comparison.

International Education Loan application form

Until now you have been dealing with the research and calculations part, it is time to start the process of applying for a loan legally. After finalising the bank and amount of loan you will require, you have to fill the loan application form. It can be done online or offline according to the bank. Make sure to fill correct details in it.

In the application form, you will have to fill the details such as your full name, parents name, date of birth, address, ID proof, qualifications, swiss university name, the course chosen, duration of the course, tuition fees, Income and Liabilities, employment details, type of security, other expenses etc. You should fill everything asked in the form correctly and recheck it before submitting.

Submit the documents

For getting an education loan every applicant needs to submit some important documents. You need to attach these documents along with the Loan Application Form.  The list of documents required are given below:

  • A copy of a valid passport.
  • Academic documents of the student.
  • Proof of Enrollment at the University of Switzerland. 
  • Scheduling of expenses to the course.
  • Applicant’s latest passport-sized photos.
  • Identification proof.
  • Proof of Residence. For example Driver's License, Voter Registration Card, Telephone bill, Electricity bill etc.
  • Proof of Age.
  • Photographs and Residence proof of guarantor.
  • Brief statements of assets and liabilities.
  •  Student's or Co-borrower bank statements.
  •  Student or Co-borrower statement of assets.
  •  Student or Co-borrower proof of income. For example Salary slip.

Other Documents are(if applicable)

  • Official Certificate of Minority Caste.
  • Certificates of Extra-curricular activities 
  • Documents regarding any disability or illness

Education loan agreement to study in Switzerland

Once your loan application gets approval from the bank, it will issue a loan document that includes various terms and conditions of the loan along with the basic details. Read the terms and conditions carefully and if you agree with that, sign it.
 The document will have the following details on it:

  • Borrower’s name
  • Agreed loan amount
  • The period of repayment
  • Interest rate
  • Collateral details
  • The signature of both the parties, etc. 

Disbursement of education Loan Amount

After signing your loan document, the bank will disburse the amount to you. The bank can pay the amount in instalments or lump sum as per the terms and conditions mentioned in the agreement. The loan sanctioned by a bank would completely be for educational purposes and not to cover any of the personal expenses. 

Collateral rules for international education loan.

Generally, banks ask for collateral security for loans which include a high amount. Collateral security is some kind of movable or an immovable asset which is pledged with the lender by a borrower to obtain education loan.  Most of the banks ask for collateral to reduce the risk involved in paying off the credit.

Instruments used as collateral: 

  • Immovable Property such as a residential flat, a house, a plot with defined boundaries, a non-agricultural land etc.
  • Liquid  Assets such as Fixed Deposits, government bonds, life insurance policies from government-approved lenders, etc

Banks examine the following:

  • The repayment capacity of the student's parents/family/Sponsor.
  • The representative of the bank will verify your property deposited as collateral and prepare a report accordingly.
  • Additionally, the value of Collateral Security is calculated. Banks usually complete the valuation procedure with the help of an approved Valuator.

Education loan for Switzerland without collateral

Students have a tougher time trying to gain education loans without collateral. Since there is no security for the loan, the banks pay close attention to factors such as 

  • Student’s academic profile.
  • Global ranking of the university in Switzerland into which you secured the admission.
  • Co-applicant’ s overall financial stability to repay the education loan.

Repayment of Education Loan to Study in Switzerland

The loans taken to study in Switzerland are to be repaid with interest. It is usually paid in instalments, as decided in the loan agreement. Reimburse with the timely instalments with the agreed amount.
 
The loan can be repaid within 10 -20 years after taking the loan. The repayment can be done 4 to 12 months after the completion of the course. Moratorium time varies with different loans providing banks. 

You should also read these articles:
Choose Top Courses to Study in Switzerland
Stay back and Work Permit after Study in Switzerland
Top 10 Reasons to Study in Switzerland

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