Factors that determine your student loan eligibility in India
Education
loans take care of all the study related expenses that you incur while pursuing
a course of your choice. The different types of expenses covered by the student
loans are the costs of educational fees, tuition fees, study material, travel
expenses, costs of accommodation, etc. However, there are times when you may
require capital to take care of other miscellaneous expenses. But, you don’t
have to worry because education loans cover all the additional costs that you
incur while completing your higher studies. Yet, you cannot simply ask for an
education loan from the commercial financial institutions. The banks and NBFCs
(non-banking financial companies) grant education loans, only to the students
who are deemed worthy. There are a certain Student Loan Eligibility requirements, placed by financial institutions, which
determine your eligibility.
The
different factors that determine your eligibility for a student loan are as
follows:
·
Nationality: The first and the
foremost deciding factor that decides your eligibility is your nationality. You
need to be an Indian citizen, to apply for an Education Loan in India with the Indian banks. This
encourages fellow Indian citizens to pursue higher education, which affects the
overall growth of the nation.
·
Age: Believe it or not, but
there is an age limit in place for student loan eligibility. You need to be at
least above the age of 18 years and below 35 years (in the case of a few
banks), to qualify for the loan amount. Therefore, if you don’t make the age
bracket then you won’t be eligible for the education loan.
·
Minimum qualifications: There are certain
pre-requisite educational qualifications in place for loan eligibility. Thus,
if you don’t meet with this criterion, you will not be deemed worthy of the
loan amount. Also, the banks and NBFCs (non-banking financial companies) only
grant a loan, to the students who have a meritorious background; meaning, the
ones who have excellent credentials to their name.
·
Co-signer: There must be an Indian
citizen who is willing to co-sign the loan amount. He or she will be the
primary debtor for the loan amount; meaning, the loan will be given in their
name. This co-borrower can be any of your relatives, family members, etc. He or
she should have a great source of income. Also, you can acquire a higher loan
amount by making use of multiple co-borrower facilities provided by banks and
NBFCs (non-banking financial companies). Therefore, Education Loan Eligibility required you to have a co-signer.
·
Credit history and score: Your co-borrower need to
have a good credit history with the banks and other financial institutions. The
minimum benchmark set by most of the financial institution is around 750 (CIBIL
score), which you have to meet. Thus, make sure that they have made timely
repayments on all their past and current loans.
·
Educational course: The main reason why banks
and NBFCs (non-banking financial companies) give out loans is to make profits.
Thus, they need to be assured that you will be making timely repayments. The
course of your choice is one of the deciding factors that determine your student
loan eligibility.
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