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Malaysia is highly acknowledged as an educational centre for overseas students. According to UNESCO, Malaysia is one of the top 20 desired study destinations in the world, accounting for 2% of the total international student population. When you consider studying in Malaysia, you will be commencing your higher education in Southeast Asia's most diverse and exciting setting. Year after year, the country boasts its perfect education system and curriculum, with top-ranked aviation, marketing, engineering, and nursing schools. International students take an education loans in Malaysia in order to finance their education and living expenses in the city. Let’s take a close look at some of the most important factors to consider when applying for a study loan in Malaysia.

Applicants must meet a set of requirements in order to be approved for an international education loan in Malaysia. While the parameters vary depending on the university, programme, loan tenure, academic excellence, credit scores, the co-applicant, and other aspects, the following are a few that students should consider when applying for a student loan in Malaysia -

• The candidate must be a qualified Indian citizen
• The candidate must be accepted and have a confirmed seat at a Malaysian university
• Excellent or good academic records are essential
• The candidate must be enrolled in a course that the financing institution has authorised
• Any other specific requirements that the bank/NBFC may demand

1. Upon receiving a conditional or unconditional offer letter from the university of your choice, based on the tuition fees & living expenses, students start looking for a student loan in Malaysia

2. To get started, you can visit the UniCreds website & fill in your personal information and other basic details

3. You can then upload the necessary documents as required by your university

4. This will then be reviewed by our experts and sent to the lenders

5. Within a few working days, if you’ve met the criteria, your loan will get sanctioned

6. Based on the set date, you can expect the loan disbursal.

Before you proceed with applying for an education loan in Malaysia, here are some factors to be taken into consideration -

1. A co-applicant is required at the time of application. The co-applicant could be a friend, sibling, parent, relative, or anyone who has financial stability.

2. It is important that you have an eligible CIBIL score for your loan to get approved.

3. If you’re planning to apply for secured education loans, keep in mind that you will have to submit collateral.

4. Financial documents of both, the borrowers as well as of the co-applicant

5. If the co-applicant is self-employed, he/she must have an ITR.

When applying for an education loan to study abroad in Malaysia, candidates must provide a series of documents. These records determine the student's loan eligibility, and the procedures and document list may differ based on the financial institution and the applicant. There is, however, a standardised list of documents for both the applicant and the co-applicant. They are as follows -

1. A valid passport copy

2. Academic documents

3. Proof of enrollment at a Malaysian institution

4. Financial Documents of both - the applicant and co-applicant

5. Proof of Identity, Age & Residence

6. Brief Statement of assets & liabilities

7. Passport-sized photographs

8. Co-applicant’s bank statements, proof of income, & other relevant documents

9. If required, original certificates may be asked

One of the major reasons why overseas students select Malaysia for their further studies is its low-cost, high-quality tertiary education. While the cost of studying in bachelor’s programmes in Malaysia ranges from RM 25,000 to RM 60,000; pursuing masters’ programmes costs between RM 30,000 to RM 45,000. Apart from these aforementioned expenses, overseas students may come across several other living expenses like their student accommodation, food, clothing, entertainment, and more. To finance these expenses, many students prefer taking a low-interest education loan in Malaysia.

The best part of taking an education loan in Malaysia with UniCreds is that you can get up to 100% financing implying that all your expenses will be covered by the loan. The following are the things you can expect an education loan to cover -

1. Tuition Costs

2. Travel & Transport including the tickets

3. Accommodation & Rental expenses

4. University fees & additional course costs

5. Food expenditures

6. Living expenses

7. Laptop

8. Other research, thesis, and project-work-related expenses

9. Any other expense required for your education

To study in Malaysia, there are primarily 2 types of loans available to students. What type of education loan in Malaysia you apply for, however, will depend on the financial institution and your eligibility -

Secured Education Loans: A secured study loan is one for which the applicant must offer security or collateral. Apartments and retail stores are instances of tangible assets, whereas fixed deposits and government bonds are examples of intangible securities.

Unsecured Education Loans: A student loan in Malaysia without collateral is an unsecured loan. As the name implies, applying for an unsecured student loan. However, it is important for students to note that the interest rates may be higher for an unsecured student loan due to no collateral.

Applying for an education loan in Malaysia involves a lot of research and requires a set of steps to be followed. The procedure may seem cumbersome at first, and the student may get overwhelmed when applying. However, UniCreds makes it easier for students with expert counsellors assisting students at every step of the process at no extra cost. There are some tips that students should be aware of when applying for an international student loan in Malaysia and they include -

1. Selecting A Financial Institution Selecting a bank or NBFC that offers the best loan terms is more important than ones that give more finances. It is also important to verify if the lender gives the option to make the EMI payments in advance or allows for partial payments of the loan. Knowing the service charges and prepayment penalties is a must.

2. Total EMI Cost The EMI paid for education loans in Malaysia depends on how a student chooses to repay the loan. Some students choose to borrow money for a longer period of time since the EMI would be lower. The cost of the loan and the interest paid, however, will be significantly greater in this case. Therefore, if the chances of finding a well-paying job following the course are strong, choosing a shorter loan term is better.

3. Moratorium Periods Moratorium periods are sabbaticals that typically last the length of the course plus an additional year or six months after finishing the course, whichever comes first. Students are not required to make loan payments during this time, although interest will continue to accrue. Students are permitted to pay down the interest during the moratorium period, which will lighten the burden of the loan and reduce the cost of the loan once they must begin making EMI payments.

4. Pay In Installments Banks tack on interest on the amount of money sent. Typically, a student must pay for the course once per year or once per semester. Therefore, it would be wiser to apply for a loan when needed. In this manner, substantially less interest will accrue. Make sure that the money is distributed as and when it is needed, rather than having it sanctioned in one lump sum.

5. Tax Benefits Under Section 80E of the Income Tax Act, students can get tax benefits on the interest they pay on student loans. The loan must be obtained from an Indian scheduled bank or a gazetted financial institution in order to qualify for this deduction. Eight years is the maximum time for a tax deduction. Therefore, choosing a longer loan implies that students will only receive the tax deduction for the first eight years.

UniCreds, unlike any other platform, makes securing student loans easy. Here are some of the reasons why receiving an education loan in Malaysia with UniCreds is the best choice -

1. Full financing (up to 100 %) for tuition and living expenses

2. No margin money

3. Immediate sanctions in the event of an emergency

4. Options for customised financing

5. Comparing education loans

6. Tracking of loan applications

7. Loans with no collateral

8. Doorstep delivery of services

9. Paperless approval of loans