Everything about the Education Loan to Study in Netherlands


The Netherlands is one of the most sought-after countries in Europe for international students. A large number of international students move to this favored country for their further education. One of the main reasons for attraction is that the Netherlands offers degree programs in English.
The biggest obstacle for international students is to deal with arrangements for funds for studying in Netherlands. Cost of studying in Netherlands can be expensive for overseas students and everyone cannot afford it. So here we have a solution for it. In this article, we are going to discuss everything about Education Loan to Study in Netherlands.

How to get an Education Loan to Study in Netherlands?

Netherland is a place where students come from all over the world to take advantage of its standard English taught programs. If you are unable to afford international education you can obtain an education loan for it. Here are the 8 simple steps you need to follow for obtaining an education loan for Netherlands:

  1. Explore the loan options and banks providing international education loans, find their eligibility guidelines and document requirements.
  2. Estimate the total amount you will require for studies in the Netherlands. 
  3. Get an admission letter from a university in Netherlands.
  4. Compare the different loan options provided by the different banks for studying in Netherlands and choose the one which suits your requirements.
  5. Once you have finalized the bank and the loan amount, you should fill out the loan application form.
  6. Submit the documents such as your address proof, birth certificate, copy of passport, Identification proof, etc.
  7. As soon as the bank approves your loan, it will issue a loan sanction document that includes various components of the loan.
  8. After signing your loan document, the bank will disburse the amount of the loan as decided in the agreement.

Now we will put forward each step in detail. Scan each step thoroughly and take note of the important points, as it is a big decision which will affect your further financial life.

Research about the banks and loan options

Your first step is to Research and explores the bank’s options for the international education loan for Netherlands. You should explore different banks and loan options. But before you research, there are a few things you need to throw light on.

Major Factors to consider

Before applying for a student loan to study in Netherlands, you should estimate the amount of money you will require and how much you are going to self-finance. Other important factors are:

  • Explore and Finalise your study institution and course you want to pursue.
  • Calculate the amount by adding all the expenses to study abroad in Netherlands.
  • Make a list of all the documents required during the loan application.
  • Be ready with the guarantor
  • Make sure to apply for the international educational loan as soon as you receive your Letter of admission.
  • Estimate the time of disbursement.

After considering the above-mentioned factors, check whether you are eligible or not for an education loan to Study in the Netherlands. Here are the criteria:


Eligibility Criteria for education loan to study in Netherlands

Applicants need to understand the eligibility guidelines of banks for education loans and qualify for the same. Different money lending institutions follow different eligibility criteria. Here are the common eligibility criteria followed by most of the banks:

  • The applicant should have a tremendous academic record.
  • The applicant must have a confirmed seat at the Dutch university.
  • The applicant must be more than 18 years of age or else his or her parents will have to apply for the loan.
  • The applicant is required to have successfully secured admission to a job-oriented course. It can be any professional, technical Graduation Degree, Post Graduation Degree, and Diploma course like MBA, MCA, offered by a reputed university.
  • The applicant must have cleared an English language test, such as IELTS, TOEFL, Cambridge English, etc.

Improving Eligibility for an Education Loan

Every day the bank receives several loan applications. To get your application on top and get approved faster, you can work on the following points to enhance your application to qualify for the loan:

  • Gaining high grades in the qualifying exams.
  • Present an outstanding academic record.
  • Admission letter from a recognized college/university.
  • A powerful financial ability of parents/guardians/co-borrower to ensure a timely repayment.
  • Submitting a promising future employment/income generation.

Calculate the amount required to study in Netherlands

Moving further, now you have to calculate the total amount you will require to study abroad in Netherlands. Generally, an international education loan covers the total cost of a student’s education in the Netherlands. For adding all the expenses, you should include the following:

  • Tuition Fee:- The Academic fee for each academic period.
  • Mandatory Fees:- This involves expenses like examination fees, library fees, laboratory fees, etc. 
  • Housing and Accommodation:- This expense includes Housing expenses in the Netherlands. You can choose to live on-campus university or off-campus. The cost of living depends on your choice of Living. 
  • Purchase of books/equipment/instruments/uniforms
  • Purchase of computer- essential
  • Travel expenses:- Things like airfare, parking permit, monthly bus/ train pass, etc.
  • Miscellaneous Expenses:- Expenses of project work entertainment,  communication, clubs, etc are also considered.

Once you get your final amount, you have to check how much you will be able to finance on your own and how much loan you will require from the bank. 

Admission Letter from the university in Netherlands

You are taking the loan for studying in Netherlands, so it is now the time to apply and get an admission letter from your chosen university. You have to show proof that you are accepted by the Dutch university by submitting a letter of acceptance. There are numerous universities in the Netherlands for international students. Here are the top-ranking universities in Netherlands :

  1. Delft University of Technology
  2. University of Amsterdam 
  3. Wageningen University & Research
  4. Eindhoven University of Technology
  5. Utrecht University
  6. Leiden University 
  7. University of Groningen 
  8. Erasmus University Rotterdam
  9. University of Twente
  10. Radboud University

The list of universities does not end here. It continues with large, small, public, and private universities in Netherlands where you can pursue your higher education. You will get full information here: Universities in Netherlands

Comparison of Education loan options

You should check the loan options individually to find the one which suits your needs best. Compare the loans options provided by the different banks on the following parameters:

  • Interest rate
  • Expenses covered in the Loan.
  • Processing Fee
  • Loan Amount 
  • Value of collateral demanded
  • Moratorium Period
  • Disbursal Requirements
  • Margin Money
  • Income tax benefits
  • Loan processing time
  • Repayment terms and conditions
  • Additional Charges

Each factor plays an important role, so take your time to decide. If you finalize after paying close attention to all the factors, you can save a few Euros. 

Education Loan application form for Netherlands.

Here, you will officially take the first step of applying. After finalizing the bank and determining the loan amount, you have to fill out the application form. It can be online or offline. Make sure to fill in correct and accurate information in it.
You have to fill in the details such as your name, parents' name, address, date of birth, age, ID proof, course name, university name, duration of the courses, Income, Liabilities, employment details, tuition fees, other expenses, Details of security, etc. Fill in all the details correctly and recheck them before applying.

Submit the required documents

Along with the duly filled Loan Application form, every applicant needs to provide some important documents to the bank. The list of these documents required while applying for the education loan for the Netherlands are mentioned below:

For Student-applicants

  • Proof of Identity. For example Passport/ Driving License/ Voter ID card
  • Proof of Residence/ Address. For example  Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhaar Card
  • Passport
  • Academic Records: 10th Result and 12th Result
  • Graduation Result: Semester-wise (if applicable)
  • Entrance Exam Results such as GMAT, GRE, TOEFL, and IELTS
  • Proof of admission: Acceptance Letter from the Dutch Institution. 
  • Cost of study Statement
  • 2 latest passport-size photographs

For Co-applicants/ Guarantor

  • Proof of Identity 
  • Proof of Residence
  • 2 latest passport-size photographs

For Proof of Income for Self-employed Co-applicant/ Guarantor

  • Address proof of the Business
  • Certificate of Professional degrees such as a doctor or CA. 
  • Bank account statement or passbook copy for the last 6 months
  • Income Tax Returns for the last 2 years 
  • TDS Certificate

For Proof of  Income for Salaried Co-applicant/ Guarantor

  • Copy of Salary Slip of the last 3 months
  • Copy of last 2 years of Form 16
  • Bank account statement or passbook copy for the last 6 months

Other Required Documents

  • Certificate of Minority Caste.
  • Certificates of Extra-curricular activities 
  • Documents regarding any disability or illness

International Education loan agreement

As soon as your loan application is approved, the money lending institution will issue a loan sanction document. The document incorporates various terms and conditions of the loan. 

The details mentioned in the document are the borrower’s name, agreed loan amount, the period of reimbursement, interest rate, the signature of both the parties, collateral security, guarantors details, additional charges, etc. Read the Loan sanction document carefully and if you agree with the terms and conditions, sign it.

Disbursement of Loan Amount

After signing and submitting your loan document, the bank will pay the loan amount to you as decided in the agreement. It can be disbursed in installments or lump sums. Once you receive your amount, spend on the necessary expenses such as tuition fee, books, and supplies, accommodation, purchase of laptop or computer, etc. Don’t spend your money on needless expenses. 

Collateral Rules for Education Loan to Study in Netherlands

Any property either movable or immovable, deposited as a security in the bank for an education loan is collateral. The rate of interest for the education loans to study in the Netherlands depends straightforwardly on collateral availability. Most of the money lending institutes demand collateral to decrease the risk involved in re-paying off the loan.

Instruments used as collateral: 

  • Any movable asset such as  Fixed Deposit, shares, bonds, 
  • Any immovable property such as land, house, commercial property, etc can be utilized as collateral. 
  • Even life insurance policies, gold, mutual fund units, debentures, etc can also be deposited as collateral.

How much can be borrowed against collateral?

The value of collateral required for an international education loan for Netherlands is very subjective. It varies from bank to bank. Moreover, the academic record of the student and their scope of future employment are also checked. Most of the banks ask for collateral security to reduce their risk.

There are a few important things banks will examine before granting a loan:

  • The repayment capacity of the student's parents/family/Sponsor.
  • The representative of the bank will verify your property provided as collateral and prepare a report on whether it can be kept as collateral or not.
  • The loan-providing institution will also evaluate the value of your property. Depending on the report, the loan amount and other terms and conditions will be decided by the bank. 

Repayment of Education Loan to Study in Netherlands

The loans taken to study in Netherlands are to be paid in installments. The amount to be paid in each installment is specified in the loan agreement. Make sure to pay the installments on time without delay.

The loan taken to study in Netherlands can be paid in installments. The loan can be repaid within 12 -15 years depending on the loan amount. You ought to note that the reimbursement period and the installment amount changes with the chosen institution and the sum of the loan.

You should also read these articles:
Stay back and Work permit after Study in Netherlands
Checklist Before Studying in Netherlands
Top courses to study in Netherlands

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