Education loan for France

France is the study destination where most of the international students prefer to do their education abroad. The tuition fees in France are comparatively less than the European countries. However, to manage your overall cost of studying in France, it’s better to seek the education loan for France. There are many educational loan options that are available for international students to cover your tuition fees and other expenses.

There are two types of student loans in France which you need to be aware of before applying for the international student loan. And, there are specific requirements, eligibility, and documents that need to be submitted for the education loan. In this article, we’ve given the complete guidance on applying for the education loan for France and how to get the student loan in France in detail.

Why get a student loan in France?

Study abroad aspirants can get a student loan in France as it is one of the countries that allow students to pay the amount in instalments. Banks in France offer students a repayment tenure from 5-15 years. Attractive tuition fees in France is one such aspect that international students prefer to study in France. Tuition fees in France are quite affordable than the European countries and thus you can manage to pursue your studies by getting a student loan in France.

Cost of studying in France

The cost of studying in France involves the tuition fees, cost of living and other miscellaneous expenses. The average tuition fees for the Bachelor program is 170 EUR per year and for masters, the average tuition fees is 260 EUR per year and 380 EUR per year for the doctorate program. The average living cost in France is around 900 - 1800 EUR per month depending on the city of France.

Types of student loans in France

The two major types of student loans in France are secured loans and unsecured loans. Let’s understand the types in detail:

Secured education loans

Secured education loans are acquired by providing the proof of assets as a collateral security to study in France. This gives the rights to the lender to take possession over the collateral in case of repayment. This education loan with collateral provides a higher loan amount upto 1.5 crores with lesser interest.

Unsecured education loans

Unsecured education loan doesn’t require any collateral security. Students who don't have any financial assets can lend this loan from the NBFCs. These non-collateral education loans are higher in risk and have high interest rates. Students applying for the unsecured loan need to fulfil certain eligibility requirements required by NBFCs.

What is a collateral loan?

Collateral loan is a secured loan that students need to lend by providing the collateral security to study in France. There are two types of collateral that students can provide to acquire the abroad education loan. Immovable property such as house, land, and liquid securities like fixed deposits, bonds, gold, etc.

Factors to be considered when applying for the education loan in France

Are you looking for an international student loan in France? While acquiring an education loan in France you need to consider the below factors.

• Loan Margin - Loan margin is the amount that is covered in the education loans by the lenders of international students. Most of the banks will cover the entire amount to study in France, but some have a 10% margin i.e. 90% of expenses will be covered by the lenders.
• Repayment tenure - Repayment tenure is the period that students need to repay the loan amount. The period of repayment will be 5-7 years and some banks give for 10-15 years.
• Moratorium period - Moratorium period is the duration where students are not required to make any repayment. It is usually 6 months to 1 year after the loan.
• Interest rate - The interest rate will vary depending on the type of loan and lenders. Pay more attention to the annual percentage rate associated with the type of loan you are about to acquire.
• Loan processing time - Aware of the loan processing time that is made by the banks, so you can further plan your studies and visa application process.
• Collateral security - Know what are the collateral properties that are required by the banks and the right they have regarding the submitted security in case of repayment.

Eligibility criteria/ prerequisite for student loan in France

Following are the eligibility criteria that students need to be aware of before applying for the education loan for study in France.

• Candidates applying for a loan need to be an Indian citizen.
• The age eligibility is between 18 - 35 years while applying for the education loan.
• Students must have been accepted by recognized institutes of France.
• Candidates must have a degree or higher education from a UGC, AICTE or other recognised university/school.
• Full-time students need to have a co-applicant such as parent/guardian/spouse.

What are the visa requirements for the students looking for education in France with student loans?

There are no such specific visa requirements for the students who want to study in France with an education loan. You need to submit the commonly required documents for the visa process and fulfil the requirements. Below are certain requirements that students need to have for visa application.

• Valid passport
• Letter of acceptance from the France universities
• Financial proof
• Airline tickets or reservation with date of departure
• Medical insurance
• Visa payment proof
• French language proficiency test certificate (in case of French course)

How to improve your eligibility criteria for securing educational loans?

Getting approval for education loans to study in France is based on the fulfilment of eligibility criteria by students that Banks have. Below are the ways which you can improve your eligibility for an education loan:

• Securing high scores in the exams such as IELTS, TOEFL, TOEIC, TCF, etc
• Excellent academic records
• Recognised France university admissions
• Showcase financial background
• Income proof/future employment prospects

Government guidelines for education loans to study in France

Here are some of the guidelines that the Government has in place for Banks to process the education loan that students need to be aware of.

• Banks are not allowed to ask for a due certificate as one of the criteria for the consideration of the education loan you apply for.
• They are only allowed to get an affidavit or declaration form that students haven’t acquired any other loans from other banks.
• Fifteen days to 1 month is the period that loans need to be disposed of without exceeding the stipulated time as per the priority sector lending.
• Banks can allow certain relaxations in the norms of margin, security, eligibility after the loan approval.

Letter of acceptance from the France universities

The acceptance letter from the French universities is one of the requirements that Banks have to process the education loan for students to study in France. Letter of acceptance is the proof that institutions issue for students upon accepting into their school. Below are the top universities in France that offers acceptance letter:

1. PSL research university
2. Sorbonne University
3. Institut polytechnique de Paris
4. Université Paris-Saclay
5. Université de Paris
6. Ecole des Ponts ParisTech 
7. Aix-Marseille University
8. University of Bordeaux
9. École Normale Supérieure de Lyon
10. Montpellier University

Application process to apply for loan to study in France

1. Get an acceptance letter from the recognized university of France.
2. Calculate the overall cost of studying in France and plan for the amount of loan you require.
3. Analyse the Banks that offer education loans for international students to study in France, eligibility criteria, requirements and documents.
4. Compare the educational loan options that different Banks have, for international students.
5. Fill the student loan application
6. Submit the required documents
7. Provide the proof of collateral security
8. Agree and sign the issued loan document

Documents required for a student loan for France

To get eligible for student loan for France you need to submit certain documents while applying for the education loan.

• Letter of acceptance from the recognise France universities
• Filled loan application form
• Proof of identity such as PAN card, Aadhar card, Driving licence, etc.
• Residential proof
• Birth certificate
• Academic marksheets
• Transcripts
• Financial proof
• Bank statement of past year
• Valid passport
• Co-applicant income proof
• Collateral papers
• Entrance exam scores
• Passport size photographs

What are the expenses covered under the student loans for France?

There are various types of expenses that are covered by the Banks of France depending on their own criteria. The following are the expenses that come under the education loan in France.

• Tuition fees
• Accommodation/residence fee
• Laboratory, library fees
• Exam fees
• Books, supplies, equipment
• Caution deposit/refundable deposit
• Expenses of research work, project, study tour, etc.

When is the right time to apply for an education loan to study in France?

The right time to apply for an education loan to study in France is at least 1.5 months prior to your visa process. The visa process for the abroad education in France also takes time, so you need to consider the visa processing time while applying for the education loan. Also, the intakes in France need to be considered by students before applying for the student loan to study in France. Hence, the loan disbursement will be done by the Banks in the right time to start your studies.

Repayment of student loan for France

Repayment tenure is the period that students are allowed to repay the entire loan amount to the lenders of France. Majority of Banks in France have a repayment period of 5-7 years and some offer 10-15 years which varies depending on the secured and unsecured loans. The repayment of student loans for France can be done in instalments.

Education loan agreement to study in France

A loan document is issued by the bank upon approval of your international education loan application. The document carries information such as name, loan amount, repayment period, interest rate, details of collateral property, and others. Students are required to read and accept the terms and conditions upon receiving the student loan for France.

Disbursement of the student education loan

Student loans will be disbursed by the Banks of France once the applicants agreed and the lender granted the education loan to study in France. Mostly, Banks disburse the student loan directly to the respective France universities. Universities receive the amount from Banks within the intakes in France.

Collateral rules for education loan to study in France

Education loan with collateral required the students to provide immovable property like house, land, etc or liquid assets like bonds, gold, etc as a collateral security. All the collateral papers need to be attached with the educational loan application. A good CIBIL score is one of the criteria that banks considered while sanctioning student loans to study in France.

Tips for choosing the best education loan for France

If you’re planning to get an education loan for France, you need to consider the following tips before applying for any of the Banks for student loans in France.

• Comparison of educational loans - Start researching different loan options offered by banks by checking its margin, eligibility, terms and conditions, etc.
• Check the interest rates - Interest rates are the one factor that students need to look at. Ensure the interest rate fixed by the Banks can be within your limit.
• Expenses covered - Figure out the types of expenses that you look for from the banks to cover as part of your education loan in France.
• Security - Know the types of collateral security that banks require for the student loan for France thus you can choose the type of loan depending on the interest rate.
• Student support - Check the payment options, customer support, transparency, loan support and other services that banks offer for student loans for international students in France. 

Conclusion

The application of the education loan for France is done carefully by the international students who are planning to study in France. Hope this article will clear all your queries that you’ve regarding the student loan for France.