Frequently Asked Questions About Study Abroad | Enrizon

Frequently Asked Questions

Foreign Education Loan 101

An Education Loan is a loan taken from a Bank or Financial Institution to pay for your higher education – usually for your undergraduate and postgraduate studies. An Education Loan can cover your tuition fees, living expenses and other expenses like health insurance, books etc either partly or fully.

You may be eligible for a Foreign Education Loan if you have a confirmed admission in a College / University abroad and an eligible Co-signer or Co-borrower. Loans without Co-signer are available under certain circumstances (For example graduate programs in highly ranked US Universities).

A Co-signer or Co-borrower is the guarantor for the Education Loan. If the student is unable to repay the Education Loan, the Bank or the Financial Institution can recover the amount from Co-signer. In most cases, parents or siblings of the students can be Cosigners. Other relatives like uncles, grandparents, cousins, etc can also be Cosigners subject to certain conditions.

A collateral is an asset owned by you or your co-borrower offered as a security to the Bank or Financial Institution against which the Education Loan is granted. Typically the following assets are accepted as collateral – residential property, commercial property, industrial property, non-agricultural land and fixed deposits.

There are many Education Loan options available without collateral depending of factors like the country of education, stream of education, student’s academic performance, strength of Co-signer, etc. Please connect with us to understand your options for Collateral Free Education Loan.


Enrizon is an Education Finance Marketplace – we are aggregators of various education finance products like Study Abroad Education Loans, Scholarships, Education Related Insurance Products and Foreign Exchange Solutions. We help students to discover, compare, shortlist and apply for Education Loans and other products that that suitable to your requirements and circumstances.

Enrizon does not directly provide Education Loans to students. We work with our partner banks and financial institutions in India and the United States of America to help secure the most suitable Education Loans for our clients at the lowest interest rates and on most favourable terms.

When you are working towards your foreign university admissions, there are a lot of tasks like research, test prep, documentation, applications, visas, etc which you need to focus on to secure admission in your dream university. Enrizon lets you focus on these tasks which are really important to achieve your dreams and takes care of all your Education Finance requirements. When you come to Enrizon you do not have to worry about researching about various loan products, their eligibility criteria, their application process, applying individually to multiple loan providers, etc. We simplify the entire process for you, get you the best deal and save you a ton of time!

Apart from securing the most suitable Education Loan at the lowest rate of interest and on most favourable terms for you, we can also assist you with your other Education Finance products like scholarships, insurances and foreign exchange. You will not have to go to multiple service providers and Enrizon can assist you with all your requirements. We also have cash backs and other offers from time to time so speak to us for offers that may be applicable to you.

Education Loans from Indian Banks and NBFCs

It is mostly the Public Sector Banks (apart from one or two Private banks) which provide Study Abroad Education Loans. Foreign Education Loans offered by Public Sector Banks are always given against security of collateral. Also the application process and processing times can be lengthy and time consuming. On the positive side, banks generally offer lower interest rates compared to NBFCs. There are NBFCs that are focused primarily on Study Abroad Education Loans. The main advantage of an Education Loan from an NBFC is that NBFCs offer options for Education Loans without Collateral and are more flexible about eligibility criteria and processes compared to Banks. On the flip side, NBFCs generally charge higher interest rates compared to Banks.

There are many Study Abroad Education Loan options available with Collateral. Please contact us for more details and to discuss your eligibility.

Interest rates depend on a variety of factors like student’s GPA, test scores (GRE, GMAT, etc), University, Course, Co-signer’s profile, etc. For Foreign Education Loans with Collateral from Banks, interest rates can range from 9% to 12% per annum. For Education Loans without Collateral, interest rates can range from 10.5% to 13.5% per annum.

Repayment periods are usually up to 10 to 12 years. There are many repayment options available:

  • Interest Only – Only interest payments are to be made during your education and EMIs start after graduation.
  • Partial Interest (subject to eligibility) – Only partial interest payments are made during your education and full EMIs start after graduation.
  • Full Deferral (Only available for loans with collateral) – No repayments during your education and full EMIs start after graduation.

Enrizon does not charge any processing fee / facilitation charges / origination charges, etc from the students for Indian Rupee Education Loans. Banks and NBFCs charge processing fees which are approximately 1% of the loan amount.

This can vary from case to case. In most cases prepayment is possible without any penalty or charges after completion of lock in period which can be between 6 to 24 months. Please connect with us for more information.

You will need to have a cosigner who is a blood relative, resides in India and has a stable and sustainable source of income.

This depends on many factors but Education Loans can be used to fund total cost of your education including tuition fees, living expenses and other expenses like insurance, etc. Education Loans without Collateral are subject to a maximum limit of Rs. 50 Lacs for Education in United States of America and Rs. 20 Lacs for Education on other countries like Canada, Ireland, Germany, Australia, etc.

Student Documents: KYC Documents, Academic Transcripts / Marksheets, Test Scores and Proof of Admission Co-Signer Documents: KYC Documents, Bank Statement, Income Proof (IT Return, Salary Slips, Form 16, etc depending on source of income)

Conditional approval can be received within 4-5 working days of submitting all the necessary documentation.

Education Loans from US Banks

A US Dollar Denominated Education Loan is approved and disbursed by a US Bank. The disbursal is in US Dollars and repayment also needs to be made in US Dollars. The main advantage of a US Dollar Denominated Education Loan is low interest rates and protection from foreign exchange fluctuation.

You are eligible for an Education loan from a US Bank if you are planning to study at a college or university in the United States of America and if you have a US Cosigner.

This Education Loan requires no collateral.

To be eligible, a cosigner for a US Dollar Denominated Loan needs to satisfy the following criteria:

  • Should be a US Green Card Holder or US Citizen
  • Should have an annual income of more than US$ 24,000
  • Should have a good credit score and credit history

It is not necessary for the Cosigner to be a relative of the student.

The cosigner is not required to make any payments or provide any collateral or security on behalf of the student. However, in case of a default by the student, the US Bank is entitled to recover the outstanding loan amount from the Cosigner. Please contact us to understand this in more detail.

Student: Passport & Admit Letter / I-20 Cosigner: SSN Card, Green Card / Driver’s License & last two salary slips.

100% of your cost of education, including tuition fees, living expenses and other expenses like health insurance, books, etc can be covered by this Education Loan product.

Interest rates depend on many factors like your Cosigner’s credit score, your university, your course, etc. Currently interest rates on US Dollar Denominated Education Loans range from 4.5% to 7.5% per year.

You can choose a repayment term of 5 to 20 years. Following repayment options are available:

  • Interest Only – Only interest payments are to be made during your education and EMIs start after graduation.
  • Partial Interest – Only token interest payments (for example $25 per month) are made during your education and full EMIs start after graduation.
  • Full Deferral – No repayments during your education and full EMIs start after graduation.

We charge a Loan Processing fee of 1.25% (plus GST) of the loan amount. There are no other fees and charges.

There are no prepayment charges or penalties. You can repay the loan at any point of time.

Loan can be conditionally approved with 2-5 working days of submitting all documentation.

Yes – we do have an unsecured US Dollar Education Loan available which requires no cosigner and no collateral. This option is only available for postgraduate studies and interest rates start at 9% per annum. Please contact us for more details.