The market for education loan has increased exponentially in the recent years with more and more students aspiring to pursue higher education. These loans have helped the students to expand their knowledge and give a boost to their careers and a chance to accomplish their goal of higher studies which would have otherwise remained unaffordable for them. These loans are granted by many banks, private finance companies and financial institutions. However to avail these loans there are some education loan eligibility criteria that a student has to adhere, before the banks or private finance companies grant the loans to the applicants.it is very important for a student to follow and fit it into these education loan eligibility criteria, as if any of these are not according to the banks or private finance companies then it would definitely lead to a hindrances in receiving the study loan.
When an application is received, it goes under scrutinization and there a lot of factors taken in account for both to the students who wish to Study Loans in India or abroad, which are mentioned below:
· The student /applicant must be an Indian citizen and 18 years or above.
· The applicant must have a confirmed admission in the institute before the banks makes the final disbursement.
· A thorough check of The applicants/ students background and qualifications is done
· His/her academic performance and track record of scores and achievements
· They also check if the applicant can apply offer collateral on the loan amount or not.
· The course that the applicant has applied to take a loan for. The course should be accredited and worthy of providing good knowledge to the student such that it should give the student a good scope for placement and job opportunities so that he/she would be in a position to repay the amount.
· The institution in which the course will be studied has to be of a good repute
· They also check the job profile and credibility of the co-borrower or guarantors of the loan.
· The co-borrower of abroad studies loan must be an Indian Citizen and could be a Parent, Sibling, Legal Guardian, or any other Relative.
· The co-borrower must have a bank account in any bank in India with cheque writing facilities
· The Co-borrower would necessarily be the primary debtor.
The courses for which students are eligible to receive education loan include:
· Graduation/diploma courses
· Post-graduation/diploma courses
· Technical courses
They also extend loans for specializedcourses, training and diplomas like aquaculture, arts, music, sports and many more. Thus students who have a different interest also do not have to bother and be worried about the funding and complete their dreams
The education loan criteria also encompass the Documents required for an Educational Loan:
For students seeking a loan for studies within the country, they can provide the following documents.
· The application form
· The Student KYC and educational documents
· The Course and fee details
· The Co-Borrower KYC and income documents
· Collateral documents
· 2 passport size photographs
· The academic performance scores mark sheets or results
· Signature proof
· Income proof of co borrower or guardians
For students interested in a loan to study abroad, they will need to provide the documents below.
· Application form.
· 2 passport size photographs.
· KYC Documents
· Mark sheet or certificates of last examination passed.
· Proof of admission to the university and the course
· Course expenses
· A copy of the scholarship letter is required, if applicable
· Copy of Foreign Exchange permit if the student has it
· Bank account statement for last eight months of the borrower, parents or guardian.
· The details of security offered must be furnished for the collateral kept against the loan.
Educational loans provide the students an opportunity to cross boundaries and explore new opportunities to study further. It is an investment which a student makes for his/her future so it is very important for a student to take proper time and select the best option and also to adhere to all the education loan eligibility criteria whether it is regarding the age, documents required, collateral or the co-borrower that are required to availthe loan from banks or private finance companies. With right study loan, education take a right step in the right direction and brighten their future without any financial hurdles coming in your way.