France is a popular study destination for international students, known for its excellent universities, rich culture, and vibrant student life. However, studying in France can be expensive, and many students may struggle to cover the costs of tuition, accommodation, and other expenses. Getting a student loan for studying abroad in France can be a viable option for those not eligible for scholarships or grants to ease the financial burden and manage their expenses while pursuing their studies. In this blog, we will explore the options for education loan for France and how to apply for them.
Education Loan In France For International Students
Numerous financial institutions in France offer specialised loan programs designed specifically for international students, encompassing provisions for tuition fees, living expenses, travel costs, and other educational expenditures. The table given below provides a generic overview of the France student loans to study in the top universities in France:
| Education Loan In France Overview | |
| Loan Limit | INR 1.5-2.5 Cr. |
| Expenses Covered | Travel costs, hostel expenses, laboratory, library, and examination fees, etc. |
| Education Loan Interest Rates In France | 9-13.5% |
| Moratorium Period | Course period + 6-12 months |
| Repayment Duration | 10-15 years |
| Processing fees | 1-2% |
| Co-applicant | Parent/Guardian/Spouse/In-laws |
| Collateral Requirement | Tangible property, assets, bonds, etc. |
Loan Options For Studying In France
When considering education loans for studying in France, students have several funding options for studying in France to explore. Many financial institutions, both national and international, offer specific loan products tailored to students pursuing higher education in France. These loans typically cover tuition fees, living expenses, travel costs, and other related expenditures. Additionally, there are government-backed schemes and scholarship programs that provide financial support to eligible students. Given below are the two main education loan options you can opt for studying in France, be it a bank or an NBFC:
1. Education Loan With Collateral for France
An applicant must provide collateral as security while applying for this type of study loan. In this type, a lender receives the collateral as security in an amount equal to the loan. Tangible assets like non-agricultural land, residential properties, or other establishments are used as collaterals.
2. Education Loan Without Collateral for France
Non-Collateral Loan for France is the second type of student loan. In this case, obtaining a loan does not require providing collateral to the lender. It’s important to note that a co-applicant’s income will impact the approval chances. Additionally, only a few foreign and private lenders offer unsecured education loans for students from India who want to study in France. The main providers of unsecured education loans for France are NBFCs and private banks, such as ICICI Bank, Axis Bank, and others.
Eligibility Requirements For Study Abroad Loans For France
Understanding the eligibility criteria before applying for an education loan to study in France. Given below are the eligibility criteria considered by the majority of the financial institutions in India if you are applying for a France student loan:
- The applicant should be enrolled in or have completed a graduate/postgraduate degree or a PG diploma from an institution recognised by the UGC/AICTE/Government.
- Confirmation of admission in recognised educational institutions abroad is mandatory.
- The candidate’s age should be between 18 to 35 years at the time of applying for the loan.
- For full-time courses, a co-applicant is required, who can be either a parent/guardian or spouse/parent-in-law (for married candidates).
Application Process For An Education Loan In France Through UniCreds
If you are seeking for faster loan approvals and lesser processing fees, then we suggest you visit UniCreds website for an easier loan application process. UniCreds has partnered with the top financial institutions to get you the best loan to study in France or any other country of your choice. Follow the application process given below:
- Once your eligibility for an education loan for studying in France is confirmed, you have the option to either submit an online application or reach out to our knowledgeable education loan advisors to arrange a callback. Our advisors are equipped to assist you in securing an education loan without requiring collateral, tailored to your specific requirements.
- Upon submission of your profile information, our experts will meticulously assess it and, considering your eligibility, provide you with tailored recommendations for the next steps.
- UniCreds offers students the convenience of digitally uploading documents, eliminating the need to physically present them at the bank and allowing you to complete this process from the comfort of your home. Furthermore, UniCreds provides you with a personalised list of documents to submit based on your profile and loan requirements, streamlining the process for faster approval.
Documentation Needed To Obtain Student Loan For France
Documents to submit for an abroad education loan depend upon whether you are applying through a bank or an NBFC. Banks generally require more documentation as compared to NBFCs. However, you should be ready with the following set of paperwork before applying:
| Required Documents | Description |
| Filled Application Form | Form completed with personal and loan-related details. |
| PAN card, Aadhaar card, Driving licence, Passport or voter ID | Identification documents for verification purposes. |
| Admission letter from the university | Official confirmation of acceptance into the university or college. |
| Proof of Residence | Document confirming the applicant’s current address. |
| Photos of both – Applicant and Co-Applicant | Passport-size photographs for identification purposes. |
| Photo ID for both – Applicant and Co-Applicant | Additional identification documents for both applicant and co-applicant. |
| Co-Applicant’s Income Proof | Documentation verifying the co-applicant’s financial earnings. |
| Documents related to your Academics | Academic records and certificates supporting educational qualifications. |
| Financial statement | Statement providing an overview of the applicant’s financial status. |
| Documentation required for Immovable Property | Legal documents pertaining to immovable property, if collateral is needed. |
Loan Repayment Terms For Studying In France
Different banks in India offer various repayment methods. The repayment of education loan tenure is when the borrower repays the entire loan amount. The majority of banks in France allow students to pay back in installments, usually within 5-7 years. However, some banks also offer a repayment period of 10-15 years, while others provide flexible policies considering students.
As an international student, fulfilling the eligibility criteria and demonstrating a strong financial and academic background can make obtaining an education loan in France easier. It’s also essential to thoroughly research the expenses covered, repayment period, and bank policies before applying for a study loan to study in France.
Different Banks In India Offering Study Loans For France
As mentioned earlier, there are various banks in India offering loans for tuition fees in France. Each bank has its own maximum loan limit depending on the secured or unsecured loan you are borrowing. The table given below gives a comparison of the secured and unsecured loan amounts you can borrow from different best banks for students in France.
| Bank Name | Secured Loan | Unsecured Loan |
| Bank of Baroda Education Loan | INR 1.5 Cr | INR 1 CR |
| IDFC First Bank Education Loan | INR 1.5 Cr | INR 75 Lakhs |
| IDBI Bank Education Loan | INR 2.5 Cr | INR 75 Lakhs |
| Union Bank of India Education Loan | INR 1.5 Cr | INR 40 Lakhs |
| Canara Bank Education Loan | INR 1.5 Cr | INR 7.5 Lakhs |
| Axis Bank Education Loan | INR 2.5 Cr | INR 75 Lakhs |
| ICICI Bank Education Loan | INR 1 Cr. | INR 75 Lakhs |
Different NBFCs In India Offering Study Loan For France
Cost of studying in France can be expensive. Hence, several Non-Banking Financial Companies (NBFCs) in India offer study loans for students planning to pursue their education in France. These NBFCs provide private education loans for France to cover tuition fees, living expenses, travel costs, and other educational expenditures. They typically offer flexible repayment options and competitive interest rates. Students can explore various NBFCs to find the one that best suits their financial needs and preferences. The table given below provides an overview of secured and unsecured education loan you can borrow from different NBFCs for higher education loans in France:
| NBFC Name | Secured Loan | Unsecured Loan |
| HDFC Credila | INR. 1 Cr. | Rs. 25 Lakhs |
| Avanse | INR 1 Cr. | Rs. 30 Lakhs |
| InCred | INR 25 Lakhs | INR 25 Lakhs |
| Auxilo | INR 25 Lakhs | INR 25 Lakhs |
Factors That You Should Consider While Applying For A Study Loan For France
When applying for a study loan for France, several crucial factors merit careful consideration to ensure a successful and manageable financial arrangement. It’s essential to choose a loan with favourable terms that align with your financial capabilities and long-term goals. Given below are some factors to consider:
Loan Margin: This refers to the loan amount a student must bear. Most public banks in France offer a loan margin of 10%, which means that the bank covers 90% of the student’s expenses. In contrast, private banks and NBFCs in France offer a loan margin of 0% and cover 100% of the student’s expenses.
Moratorium Period: This is the period during the loan tenure when a student is not required to repay the amount. The moratorium period usually varies between six months to one year.
Repayment Tenure: The repayment tenure is the period for repaying the entire loan amount. In France, students can repay the loan amount in installments, and the common repayment tenure for most banks is usually 5-7 years. However, some banks also offer a repayment tenure of 10-15 years.
Tips for Applying for a Student Loan For France
When applying for an international student loan for France, students must plan and start the application process at least 7-8 months before the commencement of classes. To help you with the application process, we have listed a step-by-step guide below:
- Obtain an acceptance letter from a recognised educational institution in France
- Calculate the overall cost of studying in France
- Research the amount of loan you require and the banks offering education loans in France for international students
- Fill out the student loan application form
- Submit all the necessary documents
- Provide collateral, if required
- Sign the loan document once the loan has been approved.
In conclusion, study loans provide valuable financial support for students aspiring to pursue their education in France. While loans offer a means to cover tuition fees, living expenses, and other educational costs, scholarships in France present an additional avenue for funding. These scholarships, offered by various organisations and institutions, can significantly alleviate the financial burden on students and complement the assistance provided by study loans. By combining both loans and scholarships, students can access comprehensive financial support to fulfill their academic aspirations in France.
FAQs
Q1. What are the eligible expenses for a student loan in France?
The eligible expenses that can be covered under a student loan France include the tuition fees, fees for laboratory, library, and other academic facilities, Accommodation expenses, including rent, security deposit, and utility bills, etc.
Q2. Can international students apply for a student loan in France?
Yes, international students can apply for a student loan France. However, eligibility criteria and loan terms may vary based on the lender and the student’s country of origin.
Q3. What is the interest rate for student loans in France?
The interest rate for student loans in France varies based on the type of loan, the lender, and the student’s creditworthiness. Typically, interest rates for secured loans are lower than for unsecured loans.
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