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Education Loan For Study in Dubai (UAE)

Education Loan For Study in Dubai (UAE)

While many still choose the UK or US for higher education, the Economic Times reported that between 2021 and 2022, around 1.65 lakh Indian students chose Dubai to pursue their academic goals.

With renowned universities and a wide range of excellent courses, the UAE has become a promising location for higher studies. However, the high living costs and expensive tuition fees can make it challenging for students. The good news is that an education loan for studying in Dubai can bridge this gap.

This article will discuss top universities, popular courses, living costs, and how an education loan can help you achieve your educational goals in Dubai.

Top Universities in Dubai for Indian Students

Dubai is home to some of the best universities in the world, known for their strong academics and global reputation.

Here are some of the top universities in Dubai:

1. American University in Dubai (AUD)

AUD is one of the top universities in Dubai. It is well-known for its programs in business, engineering, and communication. The university is accredited both in Dubai and the United States, ensuring a high standard of education.

2. University of Dubai

The University of Dubai is known for its focus on business, finance, and IT education. It works closely with the Dubai Chamber of Commerce, giving students important industry connections and real-world experience. The university focuses on practical learning through internships and projects, helping students gain the skills they need to succeed in the job market.

3. British University in Dubai (BUiD)

BUiD offers postgraduate programs based on the British education system. It partners with leading UK universities like the University of Edinburgh and the University of Manchester. The university focuses on research and innovation in areas like engineering, business, and education.

Popular Courses for Indian Students in Dubai

Dubai offers many courses designed to meet the needs of the evolving industry. Some of the popular courses offered by top universities include:

1. Business Management

2. Engineering Courses in fields like civil, mechanical, and electrical engineering.

3. Computer Science and Information Technology

4. Tourism and Hospitality Management

5. Architecture and Design courses

Types of Education Loans Available for Dubai Studies

When considering education loans for study in Dubai, there are two main types. These include secured loans (with collateral) and unsecured loans (without collateral). We break them down below:

1. Secured loans

Secured education loans require borrowers to pledge some sort of collateral. These could be any assets, such as residential property, fixed deposits, or insurance policies. However, loans with collateral pose less risk to lenders. This means they offer higher loan limits and relatively lower interest rates, making them suitable for high-cost overseas education, such as in Dubai. Repayment tenures can extend up to 15 years.

2. Unsecured loans

Unsecured or non-collateral education loans do not require you to pledge any collateral, making them ideal for students without eligible collateral (like property or fixed deposits). While more convenient, these loans typically carry higher interest rates and lower loan limits than collateralised options because they pose greater risk to lenders.

Eligibility Criteria for Indian Students – Education Loan in Dubai

Education loan eligibility criteria in Dubai depend on several factors. They will also vary based on the lender’s policies, loan type, borrower profile, and other factors. However, some of the standard eligibility criteria for education loans are:

1. Indian citizenship

Applicants must be Indian citizens. Some lenders may also allow applicants to apply.

2. Age requirements

Most lenders require applicants to be between 18 and 35 years old. However, the upper age limit may vary across financial institutions.

3. Admission offer from a recognised university

You must provide a confirmed offer from an accredited UAE university, and sometimes an official admission letter.

4. Academic performance

Lenders typically prefer applicants who have a good academic record and a mark sheet. Most require a minimum of 50–60%.

5. Co-applicant requirement

A parent or guardian typically must serve as a co-applicant, and their income stability is assessed.

Required Documents for Education Loan Application

The documents required to apply for a Dubai education loan will vary by lender. However, the standard documents usually needed include:

1. Admission letter and academic records

Submit academic mark sheets and certificates such as SSC, HSC, graduation, or postgraduation. The official admission letter and your fee structure for your tuition and other expenses are also required.

2. KYC and address proof

For loan applications, lenders will require KYC, ID, and address proof. These could be your Aadhaar, PAN, passport, voter ID, or driving licence. Proof of address can be shown through utility bills, rental agreements, or a voter ID.

3. Income or bank documents

Lenders typically request recent salary slips or bank statements to assess income stability and repayment capacity.

4. Co-applicant documents

Co-applicants are also required to submit their proof of identity, address, and income, such as salary slips or income tax returns.

How can an education loan for Dubai help?

While Dubai offers top-class education and excellent infrastructure, the city’s cost of living and tuition fees are extremely high. For example, the average monthly rent for a studio apartment is around INR 90.5K, while a three-room apartment in an outlying area costs about INR 1.92 lakh. Grocery expenses vary depending on where you shop; at Spinneys, it may cost around INR 5000 per month.

These are just the basic expenses. Tuition fees are also significantly higher. At reputable institutions, undergraduate tuition fees typically range from AED 45,000 to AED 100,000 per year, while postgraduate programs can cost between AED 55,000 and AED 150,000 annually.

Given the high expenses in Dubai, the best way to cover these costs is to apply for an education loan. These loans are designed to cover both education and living expenses so that you can pursue your educational goals without financial worries.

Benefits of Applying for a Student Loan for Dubai

There are several advantages of applying for an education loan for Dubai-

– These loans offer a high loan amount, up to INR 2 crore.

– It covers all expenses, including tuition fees, living expenses, and other costs like purchasing books and a laptop.

– The loan has a long repayment tenure of up to 13 years, making it easier to repay comfortably.

– Some financial institutions allow you to start repayment after completing your education. This flexibility allows you to focus on your studies without immediate financial pressure.

– You don’t need to provide any collateral or security to avail of an education loan for studying in Dubai, up to INR 75 lakhs.

How to Apply for an Education Loan to Study in the UAE

Follow the steps below to apply for a student loan for UAE-

1. Visit the lender’s website.
2. Fill in the application form for an education loan.

3. Submit the required documents, like ID proof and academic and financial documents.

4. Await verification.

5. The lender will verify the submitted application and documents.

Once approved, the sanction loan amount will be disbursed into your account.

Processing Time and Key Steps for Education Loan Approval

The time taken to approve an education loan will depend on lender policies and the borrower’s profile. Some factors that affect it include your lender’s internal process, readiness of documents, and any additional checks required.

It may take you a couple months to research and find the right lender for your requirements, then submission, processing, and approval can also take up to a month. To speed up this process, follow these tips:

  • Keep all your documents ready in time
  • Keep your student records and admission offer letter ready
  • Make sure you/your coapplicant have a good credit history and score

Conclusion

Studying in Dubai offers top-quality education and global exposure, but the high costs can be a challenge. With an education loan for study in the UAE, you can ease these financial worries and focus on your studies.

At Tata Capital, we offer flexible and affordable study loans designed to suit your needs, helping you achieve your dream of studying in the UAE. To know more, visit the Tata Capital website or download our app today.

Add wings to your dream. Apply for an Education loan!

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FAQs

Who is eligible for an education loan to study in Dubai from India?

Eligibility for education loans to study in Dubai will vary based on lender and borrower. Usually, applicants must be Indian citizens, with confirmed admission to a recognised Dubai university, a good academic record, and a financially stable co-applicant.

What documents are required for an education loan for Dubai universities?

Document requirements for an education loan for Dubai include admission offer letters, mark sheets, KYC documents, proof of co-applicant income, and bank statements. If it’s a secured loan, then collateral documents are needed.

 

Are there special loan options for medical students going to Dubai?

Yes, some lenders may offer special loan options for those applying to medical programmes. These loan options usually have higher limits, longer tenures, and extended moratoriums, due to the course duration and cost.

How much loan amount can Indian students get for studying in Dubai?

The principal loan amounts will vary based on lender policies, course costs, borrower profile, and collateral (if it’s a secured loan). Secured loans generally offer higher loan amounts, while unsecured loans typically have lower limits.

Is collateral necessary for an education loan for Dubai?

No, collateral may not always be mandatory for all loans. For example, some lenders may offer small loan amounts without the need for collateral. However, higher-value loans typically require collateral. Policies will vary based on lender.

What is the typical interest rate for student loans in Dubai for Indian students?

Interest rates typically vary based on lender policies, borrower profiles, and loan amounts and tenure. Generally, they range from 9% to 14% per annum. However, it is important to check with your lender for exact rates.

When do I need to start repaying my Dubai education loan?

When you need to repay your Dubai education loan, it will generally vary. For most, the repayment period usually begins after the moratorium period. This period includes the course duration plus six to twelve months, depending on lender terms.

 

Can I get an education loan if my course duration is less than one year?

Yes, short-term courses may be eligible for loans with some lenders. However, approval depends on whether the institution is accredited, the course value, repayment potential, and specific lender policies.

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