Every parent dreams of providing their child with the best education possible. In today’s global economy, international education can give your child a competitive edge in the job market. Studying abroad allows students to gain a global perspective, learn new languages, experience new cultures, and make connections worldwide. However, the costs of international education can seem out of reach for many Indian families.
Fortunately, a gold loan for international studies provides a convenient way to fund your child’s higher education without liquidating your assets. Keep reading to learn how gold loans for child education abroad work and why they make sense for education funding.
How Studying Abroad Is Advantageous for Your Child
There are many excellent universities in India. However, studying abroad offers unique experiences and opportunities that Indian institutions cannot replicate. Here are some of the key benefits of international education:
- Gain a global perspective: By learning overseas, students are exposed to different viewpoints, cultures, and ways of thinking, which develops their cultural awareness and adaptability.
- Stand out to employers: In a competitive job market, international education helps graduates stand out. Multinational companies actively recruit candidates with overseas education.
- Specialised programs: Students can access specialised programs and subjects that may not be available at Indian universities. This allows them to gain knowledge in niche areas.
- Develop language skills: Studying in a different country encourages students to learn new languages. This is a major asset for career growth.
- Make global connections: Living and studying overseas allows students to build lifelong networks worldwide. These connections can lead to internships, jobs, business opportunities, and more.
- Personal growth: Studying abroad promotes independence and self-confidence among students as they navigate new environments. This growth helps them succeed in college and beyond.
As you can see, studying overseas provides today’s youth with many advantages. With the right education funding options, international education is a worthwhile investment in your child’s future.
Why Take out Gold Loans for Child Education Abroad?
Education costs can place financial strain on Indian families. On an average, studying overseas costs between ₹15-₹30 lakh per year, including tuition and living expenses.
Most families cannot afford these expenses out-of-pocket. Education loans from banks come with limitations. For instance, they require collateral and have long processing times. Moreover, you can only borrow a certain percentage of the total costs.
This is where education loan against gold stand out as an accessible financing option. Here are some key benefits of gold loan for international studies:
- High loan amounts: You can borrow up to 75% of gold’s market value. This covers a significant portion of education costs.
- Loan approval is quick: Gold loan providers can approve loans in just a few hours, unlike education loans, which take weeks. This allows you to ready funds when needed.
- Minimal documentation: Only basic Know Your Customer (KYC) documents are required, making it hassle-free.
- Collateral not liquidated: You do not need to sell any assets. Providers use your gold as collateral while you retain ownership.
- Flexible tenure: Take a long tenure to match the course duration and repay comfortably.
- Foreclosure allowed: Unlike education loans that charge foreclosure fees, you can repay early without any penalties.
Clearly, a gold loan for international studies is designed for quick education funding without financial stress.
How Much Funding Can You Get?
The maximum loan amount you qualify for depends on:
- The market value of gold jewellery you pledge
- Purity of the gold
- Policies of the lending institutions
As an example, for 10 grams of 22K pure gold worth ₹83,000, you may avail a loan up to ₹62250 (75% of market value).
Most financial institutions allow minimum loans of ₹25,000 (or even lower), so even small gold holdings can provide material funding. Families with several sovereigns of gold can potentially fund entire education costs via gold loans.
Top providers can offer education loan against gold up to ₹2 crore (or more). Their minimal documentation and quick approval make gold loans ideal for overseas education needs.
Choose the Right Loan Provider
When using gold loans for child education abroad, the loan provider you choose impacts loan costs and convenience. Here are key things to look for in providers:
- Competitive interest rates: Opt for loan providers offering the lowest rates to reduce repayment burden. Compare rates across banks and non-banking financial companies.
- Minimal processing fees: Some financial institutions levy high valuation charges, approval fees, etc. Go for transparent pricing.
- Flexible tenure: Match the loan’s tenure to your child’s course duration for easier repayment.
- Higher Loan-to-Value (LTV) ratio: Financial institutions that offer loans up to 75% LTV provide maximum financing against your gold.
- Widespread presence: A loan provider with hundreds of branches makes pledging gold and loan disbursal quicker.
- Safety of pledged gold: Reputed loan providers invest in world-class security to safeguard your gold. Review their storage practices.
- Service quality: Choose a financial institution with transparent processes and quality customer service. Read reviews online.
By selecting the right gold loan provider, you can optimise costs, convenience, and peace of mind.
How to Apply for a Gold Loan?
The process of availing gold loans for child education abroad is quick and convenient:
- Do your research and shortlist financial institutions that meet your preferences. Compare interest rates, fees, LTV ratios, etc., and apply online.
- Visit your selected lender's nearest branch with your gold jewellery and KYC documents.
- The loan provider will appraise your gold ornaments and determine the loan amount you are eligible for.
- Once you accept the loan terms, the loan provider will handle the paperwork and documentation formalities, which take 1-2 hours.
- The loan provider stores your gold in secured vaults. You walk out with the disbursed loan amount in cash, cheque, or direct transfer.
- Utilise the funds to pay admission fees, travel costs, etc., related to your child’s international education.
- Repay the loan according to the agreed-upon tenure by making monthly interest and principal repayments. After full repayment, you will receive your gold back.
Many financial institutions offer online gold loan facilities today, in addition to physical branches, for added convenience. Follow the above steps, and your child’s international education will be funded in no time!
Give Your Child the Best Opportunities
Funding your child’s overseas education may seem costly. However, you can make international education affordable by using your idle gold via gold loans. A quick gold loan for education allows you to unlock the value of your gold without liquidating assets.
With quick approval, minimal documentation, and customisable tenure, gold loans are specially designed for education needs. Selecting a reputed financial institution gives you transparent pricing and high loan amounts to meet study costs. Investigate gold loans and give your child the life-changing experience of international education. The benefits will stay with them long into a successful career and prosperous future.
