Everyone has the desire to study in a foreign country. Students are enticed to leave their homes abroad by various causes, including beautiful scenery, cutting-edge facilities, the greatest education system, and the promise of a higher quality of life.
There is a cost to all of this, though. Colleges’ hefty tuition fees and students’ paying so much more on living expenditures than in India sometimes destroy students’ ambitions of pursuing education overseas.
Although some students with exceptional intelligence can afford to study abroad thanks to scholarship programs and similar initiatives funded by private and public organizations, the vast majority of students have been left out.
Indian governmental and commercial banks and other financial institutions have responded to this need by making available Education Loans to students of varying academic standings so that they may fulfill their lifelong ambition of attending a foreign university.
However, financial institutions have established rigorous education loan eligibility for student loan schemes, and it is crucial that students meet these requirements in order to qualify for Education Loans for international study.
Education Loan Eligibility
The following is a list of the essential eligibility criteria for education loan that the applicants need to satisfy in order to have their loan application accepted:
The person requesting for an education loan needs to be a resident of India in order to be considered.
It is required that he or she has a place secured at a reputable educational institution in India or overseas.
During the application process for the education loan, the applicant’s age must fall between the ages of 18 and 35.
It is required that he or she is currently enrolled in an institution that awards graduate or postgraduate degrees or a P.G. diploma.
“The applicant must have a confirmed spot in a college or university that is recognized by the University Grants Commission (U.G.C.), the All India Council for Technical Education (AICTE), or the Government of India, etc.”
“Students who intend to enroll in classes on a full-time basis are required to have a co-applicant, who can either be a parent or guardian, or a spouse or parent-in-law” (in case of married candidates).
It is required that the co-applicant have a reliable source of income.
A great academic track record makes it easier to get an education loan approved quickly.
Documents for Education Loans for salaried individuals
KYC documents
Bank Statement for the last six months
Guarantor Form (Obligatory)
Copy of admission letter
Fees schedule
Passing certificates of S.S.C., H.S.C, Degree courses
Documents for Education Loan for all other Individuals
KYC documents
Bank Statement / Pass Book of last six months
Optional – Guarantor Form
Copy of admission letter of the Institute along with fees schedule
Mark sheets / passing certificates of S.S.C., H.S.C, Degree courses
Documents required for the first disbursement
Request for payment received from a college or university
An education loan agreement that has been signed by the applicant as well as any co-applicants
Sanction letter that has been signed by the applicant as well as any co-applicants
Request for payments to be made, which must be signed by the applicant and any co-applicants
Together with a bank statement that reflects the transaction, receipts of any margin money that has been paid to the college or university are required.
The documents necessary for providing collateral security (if applicable)
In the event of an abroad institute, Form A2 must be signed by the applicant or co-applicants.
Documents required for subsequent disbursement
Request for payment received from a college or university
Request for payments to be made, which must be signed by the applicant and any co-applicants
Together with a bank statement that reflects the transaction, receipts of any margin money that has been paid to the college or university are required.
Reports on the status of the exam, mark sheets, and authentic certificates (Anyone)
In the event of an abroad institute, Form A2 must be signed by the applicant or co-applicants.
Improving Your Eligibility for an Education loan
When it comes to determining whether or not a candidate is eligible for an education loan, financial institutions exercise extreme caution for education loan processing to the students.
When determining whether or not to provide a student with an education loan, the primary factors that are evaluated are the student’s general academic excellence, their intended course of study, and their current admission status.
Achieving a good grade point average and rating on the necessary examinations
Demonstrating a strong academic track record
Obtaining admission to a reputable or highly-ranked college of higher education
A solid history of financial responsibility on the part of the parents, guardians, or co-borrower
Exhibiting promising potential for future employment and/or the generating of income
How to Know Your Eligibility for an Education Loan?
Before submitting an application for an education loan, you can first determine whether or not you are qualified to receive one from any of the major banks.
You can establish whether or not you are eligible by conducting an online check on the Bank’s website. To be eligible for education loan through an online bank, all you need to do is provide some fundamental and essential background information.
On the basis of these facts, the results for eligible education loan offers are supplied in a form that allows for easy comparison.
After that, you can submit an application online for the most enticing deal, as well as make use of the exclusive deals provided by the Bank, thanks to its ties with other institutions.
Procedure to Check Eligibility
To determine whether you are qualified for education loan, check your eligibility criteria for education loan using the following steps:
Step 1: To learn more, check out the Bank’s official website.
Step 2: To apply for an education loan, navigate to the “Loan” area of the website and select “Education Loan” from the drop-down menu.
Step 3: Click on ‘Education Loan Eligibility
Step 4: The site will then display acceptable loan offers from their bank partners based on the information you’ve provided about yourself.
Step 5: You have the ability to select the offer that best suits your needs from those that are provided and then submits an online application for that offer via the Bank’s website.
Benefits of a student loan
For education loan, you may get the education you need without worrying about how to pay for it, which can remove a major financial barrier to pursuing the life and career of your dreams.
Investing in your future with a college degree is a wise choice, but it won’t come cheap. Here are some of the ways in which a student loan can help you out in both your academic and financial endeavors.
It gives you what you need when you need it.
The application process for a student loan is streamlined and personalized to your exact situation. Money for school is sent straight to the school, housing costs are paid to your landlord or res, and any remaining funds are deposited into your bank account or the bank account of your surety signer.
It gives you the flexibility to focus.
If you are enrolled in school full-time, you do not have to make any payments toward your student loan until you graduate. Until then, the surety’s sole responsibility is to cover the loan’s interest and fees, freeing you from financial concerns so that you can focus on your education and the future you envision for yourself. Our monthly payments are reasonable, and we can work with your schedule if you are a confident student.
It’s easy to qualify.
You need to be at least 18 years old and either admitted to or enrolled in a recognized educational institution to be eligible. A cosigner is required to act as surety if you are a full-time student.
The interest rate is lower.
You can acquire your student loan at a reduced, individualized interest rate, paying as little as 7%* interest per year, compared to a personal loan or paying for your education on a credit card.
It pays for more than just tuition.
Your education loan can be used for more than just tuition; you can also use it to cover living expenses, required course materials, and transportation to and from campus.
Applying is easy
You can acquire pre-approval online before completing your application at your closest branch with all of the essential documentation.
F.A.Q.s
What are the different factors that are considered when lenders provide an education loan?
Lenders assess the applicant’s past academic performance, the stability of the co-income, the borrower’s value of the collateral, and the prestige of the university to which the applicant has been admitted before deciding whether or not to extend a loan.
Will the lender levy any processing fee on the education loan?
Yes, Lenders may charge a fee for processing your loan application, but the exact amount will vary.
Can I change the loan from a fixed rate to a floating rate?
Yes, the interest rate on the student loan can be switched from fixed to variable.
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