Education Loan for France: All About Student Loan in France for International Students Image
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Education Loan for France: All About Student Loan in France for International Students

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Yocket Editorial Team
10 mins read
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Having low tuition fees as compared to other European study abroad destinations, France has emerged as a student favorite hotspot recently! With excellent academic quality, outstanding industrial exposures, great employability rates, along with an affordable and highly sought after education system, France has proven to be quite attractive among the study abroad population. The accommodation, and other living expenses in France, quite contrarily, can be considered to be a tad bit high, and at par with other European destinations. And therefore, it becomes quite essential, for you as an international student, to look for student loan France! 

But need not worry, as this blog will tell you all about student loan in France for international students, and a lot more! 

Table of Contents: 

  1. Why Get a Student Loan in France? 
  2. Types of Student Loans in France 
  3. Factors to Consider While Applying for a Student Loan in France 
  4. Eligibility Criteria for Student Loan in France 
  5. Application Process to Apply for a Student Loan in France 
  6. What Expenses are Covered under Student Loans in France?
  7. Repayment of Student Loans in France 
  8. Frequently Asked Questions about International Students Loans France 

 

Why Get a Student Loan in France? 

Tuition fees in France costs comparatively less as compared to other European study abroad destinations, and lies in the range of 1,500 EUR to 6,000 EUR per annum. The living expenses in France, on the other hand, are at par with living expenses in any other European country, approximately in between 1,000 EUR to 2,000 EUR per annum. Therefore, if not eligible for a scholarship, or a grant, you can opt for an education loan for France, so as to lighten the burden on your pockets. 

Suggested: Know estimated cost of living in France in 2022

 

Types of Student Loans in France 

Let us move forward to understand the various types of student loans available in France: 

Secured Loans 

Secured loans are loans which require collateral as security, in the form of tangible and intangible assets like FDs, property, etc. the rate of interest for these types of loans is usually observed to be lower, and you can even receive an amount upto 1.5 Crores. 

Unsecured Loans 

Unlike secured loans, the unsecured loans do not require any kind of collateral or security. Also, these loans will usually offer you a higher rate of interest. Unsecured loans are provided by NBFCs, and other private banks. 

Suggested: What is the difference between secured and unsecured loan?

What is a Collateral? 

When the loan amount exceeds 750,000 INR, you will have to present the bank with a collateral as security, meaning any liquid asset like gold, bonds, security deposits, valuation reports (when keeping immovable property as collateral), etc. 

 

Factors to Consider While Applying for a Student Loan in France 

When looking for student loan for international students France, and comparing various banks to obtain an international student loan France, you can investigate factors like: 

  • Loan Margin: Loan margin is the amount of loan that a student is required to incur. Most public banks in France offer a loan margin of 10%, meaning 90% of the students’ expenses are covered by the bank. Private banks and Non Banking Finance Companies (NBFC) in France, offer a loan margin of 0%, and cover 100% student expenses. 
  • Moratorium Period: The moratorium period refers to the time period during the loan tenure wherein a student is not able to repay the amount. The period usually varies between six months to one year. 
  • Repayment Tenure: This tenure refers to the period of repayment of the entire loan amount. France allows students to pay in installments, and the common repayment tenure for the majority of banks in France is usually 5-7 years. Some banks also offer a repayment tenure of 10-15 years. 

Suggested: How to finance your study abroad education the right way? 

Note: Some other factors for student loan France for foreigners include: interest rate, processing fee, types of expenses covered, loan processing time, tax exemptions, etc. 

 

Eligibility Criteria for a Student Loan in France 

Given below are some criteria to fulfill in order to become eligible for education loan for study in France: 

  • Have an Indian citizenship. 
  • Have education from a recognised university/ high school in India, affiliated with UGC, AICTE, or similar. 
  • Get accepted at a recognized educational institution in France. 
  • Age should be above 18. 

Let us also look at the documents required in order to be eligible for a student loan for international students France: 

  • Acceptance letter from a recognised university in France 
  • Student loan application form 
  • PAN card/ Aadhar card/ other IDs 
  • Proof of residence 
  • Academic marksheets, transcripts 
  • Birth certificate 
  • Passport size photographs 
  • Standardized test scores 
  • Proof of finances 
  • Income proof of guarantor 
  • Documents pertaining to collateral 

How to improve your eligibility to apply for a student loan in France for international students? 

Here are some ways you can improve your eligibility to get hold of an education loan for France: 

  • Get high academic scores, and grades
  • Apply and get selected at top tier universities and educational institutions in France
  • Showcase a strong financial background 
  • Demonstrate a stable employment upon graduation 

Application Process to Apply for a Student Loan in France 

It is essential for international students to plan and apply for international student loans France, at least 7-8 months before the commencement of classes. 

Let us now understand how you can apply for an education loan for France, through this step by step guide: 

  • Get an acceptance letter from a recognized educational institution in France 
  • Calculate your overall cost of studying in France
  • Do thorough research on the amount of loan you require, and the banks offering education loan in France for international students 
  • Fill the student loan application form 
  • Submit all the documents asked for 
  • Provide collateral, if required 
  • Sign the loan document, after the loan has been approved 

Suggested: Know loan application process in detail

What is a loan document? 

A loan document is a document given to borrowers, when a loan is approved by the bank. The loan document includes details on: agreed loan amount, moratorium period, repayment period, interest rate, and other related elements. 

What Expenses are Covered under Student Loans in France?

There are various types of expenses that can be covered under the education loans in France, and these have been listed below: 

  • Tuition fees 
  • Laboratory, library fees 
  • Accommodation charges 
  • Caution deposit, other deposits 
  • Other expenses like travel, recreational expenses, books and supplies, and miscellaneous expenses 

 

Repayment of Student Loan of France 

The repayment methods when obtaining an education loan from France, can vary with the type of bank. The repayment tenure refers to the period of repayment of the entire loan amount. 

  • France allows students to pay in installments, and the common repayment tenure for the majority of banks in France is usually 5-7 years. 
  • Some banks also offer a repayment tenure of 10-15 years. Some banks also provide students with a flexible policy, since the loan offered is a student loan. 

An international student loan in France can be easy to get hold of, provided you fulfill all the desired eligibility requirements. You can even make your candidature strong by proving to have a strong financial and academic background. It is also essential to do thorough research on the expenses covered, repayment period, bank, etc, in order to be sure before applying for educational loan to study abroad!

 

Frequently Asked Questions about International Student Loans France 

Ques. What are the expenses that can be covered in student loan France?

Ans. The expenses that can be covered under the education loans in France are: 

  • Tuition fees 
  • Laboratory, library fees 
  • Accommodation charges 
  • Caution deposit, other deposits 
  • Other expenses like travel, recreational expenses, books and supplies, and miscellaneous expenses 

 

Ques. Which reports are required when securing immovable property as collateral? 

Ans. The following two reports are required whe securing immovable property as collateral: 

  • Legal opinion/ search report: This report is provided by the bank lawyer stating whether the property can be mortgaged or not. The report contains property papers, and other relevant documents. 
  • Valuation report: This particular report is provided by the bank’s engineer stating the market value and deferred value of your immovable asset, thereby assessing the value of the collateral. 

 

Ques. How to improve your eligibility to apply for a student loan in France for international students? 

Ans. Here are some ways you can improve your eligibility to get hold of an education loan for France: 

  • Get high academic scores, and grades
  • Apply and get selected at top tier universities and educational institutions in France
  • Showcase a strong financial background 
  • Demonstrate a stable employment upon graduation 

 

Ques. What factors can I compare when looking for an education loan in France for international students?

Ans. Some factors that you can consider while applying for a student loan in France for international students are: 

  • Moratorium period
  • Repayment period
  • Margin 
  • Interest rate 
  • Expenses covered 
  • Loan processing time

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