Studying abroad is an exciting opportunity but funding it often requires careful planning and financial support. Student loans make this journey more accessible yet the application process can feel overwhelming if you’re unsure where to start. While some institutions offer repayment deferment or concessions during studies, terms vary widely and researching the best options for your situation is essential for your study abroad journey
This article offers helpful tips to secure student loans compiled by our SGSE team.
Research loan options and eligibility
In Sri Lanka, various banks and financial institutions such as Bank of Ceylon, People’s Bank, Commercial Bank, Hatton National Bank and Seylan Bank offer education loans for overseas studies. Additionally, there are organisations dedicated to providing student loans specifically tailored for international education often with flexible terms suited for students.
It’s important to research each bank’s requirements, interest rates, repayment terms and processing fees individually and choose the best option to facilitate your education.
Prepare a strong academic profile
Students that have a solid academic record are more likely to receive approval for loans as it indicates a strong likelihood of completing studies and finding employment after graduation.
If possible, include any scholarships, grants or prior academic achievements in your application. A strong academic profile can also help you negotiate better terms or receive higher loan amounts.
Choose a recognized institution and course
Banks and organisations favour loan applications for recognized institutions and courses that are in high demand. Applying to reputed universities with accredited programmes can increase the chances of loan approval as providers see these as low risk investments.
Fields with strong career prospects such as engineering, healthcare, business and IT, may also increase approval chances.
Gather necessary documentation
To avoid delays, have all your documents ready before applying. Most organisations will require:
a) Admission letter from the overseas institution
b) Course cost breakdown
c) Academic records (e.g., transcripts, certificates)
d) Financial statements of parents or co-applicants
e) Proof of collateral (if required)
f) Valid identification documents
Organise and submit your documents carefully as incomplete documentation can delay or jeopardise your application.
Be ready for collateral requirements
Many education loans in Sri Lanka require collateral especially for larger loan amounts. Collateral can be in the form of property, fixed deposits or government bonds. Understanding the collateral requirements in advance can help you prepare and potentially negotiate better terms with aid providers.
Understand interest rates and repayment terms
Interest rates and repayment schedules vary by institution so choose one that aligns with your long term plans. Loan providers do offer a grace period (moratorium) where repayment starts after you complete your studies.
This allows you to focus on your education without immediate financial stress. Compare different options to select a loan with manageable interest rates and flexible repayment terms.
Apply early and follow up
Loan approval processes can take time so it’s wise to start the application process as early as possible prior to your preferred intake. Submit your application well in advance of your intended start date and follow up with organisations regularly.
Staying in touch with the loan officers can help ensure timely processing and allows you to address any additional requirements quickly.
Consider partial funding through scholarships or grants
Loan providers prefer applicants who have secured partial funding through scholarships or grants. If you have some external funding, include this information in your application to demonstrate that you have additional financial support and reduce the loan’s risk.
Work with SGSE
Student loans for international studies can be complex. Consulting with an education consultant or financial advisor who specialises in overseas education loans can help clarify your options and provide insights into the best approach for securing financing.
SkyWay Global Success Education can also assist you in this regard offering expert guidance to help you navigate the process and choose the loan that best suits your needs.