Education Loan For Switzerland

Secured education loans are loans where borrowers need to pledge some form of security as collateral against the loan amount. This collateral could be assets like real estate or fixed deposits. These loans are available from public banks, private banks, and NBFCs (Non-Banking Financial Companies). However, public banks are the preferred option because of their low interest rate and high reputation and dependability.

Secured education loan for Switzerland - overview

Unsecured education loans are those loans that do not require collateral; instead they require a co-applicant with a stable monthly income and a good CIBIL score. A co-applicant can be the applicant’s parents, siblings, or a close relative. Unsecured loans are offered by public banks, private banks, and NBFCs.

Unsecured education loan for Switzerland - An overview

Expenses covered by education loan in Switzerland

The expenses covered under education loans by various lenders include the following - 

Education loan eligibility criteria for Switzerland

The eligibility criteria for an Indian student to secure an education loan to study in Switzerland include the following:

• The student should be an Indian citizen.
• The minimum age of the student should be 18 years.
• The student should have secured admission to a recognized university/ college in Switzerland.
• The student should have a good academic record.  

Documents required for education loan in Switzerland

The documents required for an education loan for Switzerland depend on several factors, primarily your academic and professional history, and your co-applicants financial and credit profile.

Applicant’s documents

• Identity proof: PAN/ Passport/ Driver’s License/ Voter ID card or government-issued identification document.
• Education loan application form.
• Address proof: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill/ Driving License/ Aadhaar card.
• Visa documents
• Statement of expenses.
• 2 passport-size photographs.
• Loan A/C statement of one year (if applicable)
• Bank account statement of the student (if applicable)

Academic documents

• 10th standard mark sheet
• 12th standard mark sheet
• Undergraduate result (semester-wise)
• Entrance exam results (e.g. GMAT, GRE, TOEFL, etc.)
• Proof of admission: admission letter (A conditional admission letter is also applicable).

Co-applicant’s documents

• Identity proof: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document.
• Address: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill or copy of Driving license/ Aadhaar card.
• 2 passport-size photographs.
• Bank account statement of the co-borrower/guarantor, for the last 6 months (in case of takeover of education loan).
• If any previous loan is from other banks/ lenders, then the loan A/C statement of 1 year.
• Legal documents of the collateral/ property documents.

Income proof for salaried co-applicant/guarantor

• Salary slips for the last 3 months.
• Copy of Form 16 of the last 2 years or copy.
• Bank account statement for the last 6 months (Salary account).
• Brief statement of assets & liabilities of parent/ guardian/ other co-borrower.

Income proof for self-employed co-applicant/guarantor

• Business address proof.
• Last 2 years IT returns ( If IT Payee).
• TDS certificate (Form 16A, if applicable).
• Certificate of qualification (for C.A./ doctor and other professionals).
• Brief statement of assets & liabilities of parent/ guardian/ other co-borrower
• Bank account statement for the last 6 months.  

Calculate your Education Loan EMI

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Repayment of education loan for Switzerland

When choosing a lender for an education loan, the repayment tenure of the loan is a crucial consideration. Many lenders typically ask borrowers to make payments of simple interest or partial simple interest during the moratorium period.

To ease your repayment and manage your expenses you have the opportunity to explore the option of a student job and dedicate a few hours each week to work. International students have the privilege of working up to 15 hours per week during the semester, and they can even work full-time during semester breaks. The compensation is quite substantial, ranging from CHF 25 to CHF 35 per hour. To plan your repayment better you can also use the estimate future earning tool by GyanDhan, which helps you gain a rough idea of your future earnings and enables you to plan your repayment for the future.

How to apply for an education loan for Switzerland?

Getting an educational loan for Switzerland is easy, but dealing with many lenders can be hard. That's where GyanDhan comes in. We make getting a loan to study in Switzerland simple with these steps:

Step 1: Check loan eligibility

Step 2: A dedicated loan counselor will be assigned to you.

Step 3: Loan counselors will evaluate your profile and suggest you the lender.

Step 4: After starting your loan application, they will send you a customized document checklist.

Step 5: The lender will verify your documents, this can take up to 7-10 days. Once approved, sign the loan agreement and monitor progress through GyanDhan's user dashboard.

Step 6: Initiate the loan disbursement according to the lender's procedures, with funds being directly deposited into your account or to the university.

Best education loan option for Switzerland

The best education loan choice depends on each student's situation and needs. To make a well-informed decision, students should consider the scenarios below. Remember, these are general ideas, and it's important to pick a loan that fits your own requirements.

• Secured education loans provide more funds to students. It's a good idea to get a loan for a higher amount than you need, just to be safe. The amount you're approved for is more than what you'll actually use.
• Lower interest rates on secured education loans can make managing loan payments easier. Also, secured education loans often come with a refundable processing fee, which can be appealing.
• Unsecured education loans are approved quickly and with fewer complications.
• Some students prefer NBFCs for unsecured education loans because they cover all expenses. However, NBFCs are private lenders and should be considered as a last option.

Selecting the best education loan option among the multiple options available is a significant choice that shapes your future financial plans. To simplify your path through these choices, GyanDhan is at your service. We provide personalized guidance and counseling to students, aiding them in identifying the ideal lender from the array of loan alternatives. From furnishing a customized document checklist to serving as your personal liaison with the lender, we handle every aspect. To start your journey toward securing an education loan for studying in Switzerland, check your loan eligibility and leave the rest to us!

Also read:

• Best education systems in the world
• Switzerland Universities Application Deadlines 2023
• How to get an education loan with a low CIBIL score?
• Documents required for an education loan: A detailed guide
• How to plan your education loan repayment?
• Education loan without a parental income?

Frequently ask questions