How to Use GTBank Loans to Finance Your Study Abroad Dreams
Studying abroad allows you to gain international exposure, learn in a new cultural context and enhance your career prospects. However, the high costs involved often require taking an education loan. While GTBank does not offer dedicated study abroad loans, you can utilize their flexible personal and school fee loans to fund your international education.
ALSO SEE:
Study Loan For Abroad PNB (Punjab National Bank)
Scholarship Opportunities for Nigerian Students to Study Abroad
Student Loan for International Students UK
Student Loan For International Students In Ireland
Student Loan For International Students in Italy
Overview of GTBank’s Loan Options for Studies Overseas
GTBank provides two loan facilities that can cover the costs of studying internationally:
GTBank School Fees Advance
- Specifically designed to pay academic fees in Nigeria and abroad
- Up to N1 million loan amount
- 17.5% flat interest rate
- Repayment period of 12 months
- Requires salaried individuals who have received 6 months of salary payments into GTBank account
GTBank Personal Loan
- General purpose loan that can be used for education abroad
- Higher maximum loan amount of up to N5 million
- Interest rate starting from 15% based on assessment
- Repayment period of 12-48 months
- Requires strong credit score and stable income
While they do not have special eligibility criteria for abroad studies, both loans offer sufficiently high amounts and flexible uses to cover various study-related costs.
Key Steps for Getting a Study Abroad Loan from GTBank
Follow these steps to get funding for your overseas education from GTBank:
Check You Meet the Eligibility Criteria
For the school fees advance – you must have a salary account with GTBank and received regular payments for 6 months.
For the personal loan – you need a high credit score (700 and above) and stable employment or business income.
Calculate Your Required Loan Amount
Factor in tuition fees, travel expenses, living costs, health insurance, books & supplies, and other needs to determine the loan amount. Build in a buffer for unexpected expenses.
Prepare Your Application Documents
In addition to standard personal and income documents, you will need to provide proof of admission to your chosen international university and cost estimates.
Submit Your Loan Application
Visit your nearest GTBank branch with all documents and submit the completed loan application form. Follow up persistently on the application status.
Accept the Loan Terms and Receive Disbursal
If approved, accept GTBank’s loan offer by completing additional paperwork. Account for processing time of 2-3 weeks before loan disbursal into your account.
Evaluating the Pros and Cons of GTBank Loans
Pros
- Quick and straightforward application process
- Reasonable interest rates
- No early repayment penalties
- Higher loan amounts than specialized education loans
Cons
- Requires strong credit score or account history with GTBank
- No specialized terms or benefits for studies abroad
- Limited moratorium period after completing studies
- Additional processing fees and charges
Estimating the Costs of Studying Abroad
Here are the typical expenses to account for when planning your study abroad budget:
- Tuition Fees – €10,000 to €25,000 per year
- Accommodation – €300 to €1000 monthly for student apartments or dorms
- Food – €200 to €400 monthly for home-cooked meals
- Health Insurance – €600 to €1000 annually
- Travel Expenses – €500 to €1000 for annual return flights and local travel
- Books & Supplies – €300 to €600 per semester
- Residence Permit – €50 to €200 visa processing fees
- Incidentals – €100 to €300 monthly for leisure, phone bills, others
Budget for around €15,000 to €30,000 in total annual costs when studying in countries like UK, Canada, Australia. The cost can go up to €50,000 annually in countries like USA and Singapore.
Managing Your Repayments After Returning Home
To smoothly repay your GTBank loan after completing your international education, be sure to:
- Start job hunting early and secure employment well before returning home. Having a job will make it easier to repay the loan.
- Discuss your repayment capacity with GTBank and mutually agree on an EMI suitable to your post-study income.
- Stick to the set EMI amounts diligently. Avoid defaulting or making late payments to prevent credit score damage.
- Make lump sum advance payments whenever you have extra savings to reduce interest costs.
- Notify GTBank promptly and seek out options like EMI restructuring if facing repayment challenges due to job loss or other factors.
With prudent planning and disciplined financial management, you can repay your abroad studies loan while progressing in your career.
Conclusion
While GTBank does not offer specialized study abroad loans, their personal and school fee loans provide a viable way to finance international education for Nigerian students. Just be sure to evaluate costs diligently, borrow prudently and have a repayment plan in place. By using GTBank financing options strategically, you can gain global exposure and skills to excel professionally.
FAQs on Using GTBank Loans for Overseas Studies
What is the maximum loan amount I can get from GTBank?
You can avail up to N1 million for school fees advance. For personal loans, you can get funding of up to N5 million based on eligibility.
What are the interest rates charged on study abroad loans?
Expect interest rates starting from 15% for personal loans to 17.5% for GTBank school fees advance. Rates depend on your credit profile.
What documents do I need for the loan application?
You will need financial documents, income proofs, university admit letter, cost breakdown, collateral, guarantor information and credit reports.
How early should I apply for the education loan?
Start the process at least 4-6 months before your course commencement overseas. Account for processing times.
Can I get tax benefits on the interest paid?
Unfortunately, there are presently no tax benefits on interest paid for education loans taken from Nigerian banks.