The Criteria for Education Loan Eligibility

When it comes to the 21^st century, high quality education is given the utmost importance. Unfortunately, the cost of education is increasing year by year, making it difficult for even the students with potential to get the education they deserve. Parents who want to fulfil their child’s dreams of higher education tend to rely on mutual funds, fixed deposits, etc. However, even after doing all this, there is a chance that the parents still cannot afford to fund their child’s education. That is where an Education Loan comes into the picture. An education loan plays a very important role in bridging the gap between the shortage of funds and the amount required.

An education loan is given to students who want to study in either a university in India or abroad. However, as in the case of other loan types, there is certain criterion that the student has to fulfil in order to be eligible for an education loan. Since education loans are given to students who have the potential but lack the funds, the main education loan eligibility criterion is academic excellence and achievements. The Education Loan Eligibility is determined based on their academic performance as determined by their previous mark-sheets. The other criteria are:

• -          The student must be a citizen of India.
• -          The student must be at least 18 years of age and must not be older than 35 years of age.
• -          The student’s academic record must be proven as above average.
• -          The student must be pursuing a graduate/post-graduate degree or a post-graduate diploma.
• -          The income of the co-applicant needs to be stable.
• -          The university that the student has applied to must be recognized in India or abroad.
• -          The student must provide proof of admission to the university.

Apart from these criteria, there are certain documents that also need to be provided to determine education loan eligibility such as:

• -          A properly filled and signed education loan application.
• -          2 passport size photographs that clearly define the applicant’s face and shoulders.
• -          10^th/12^th mark-sheet copies or latest education certificate.
• -          A statement wherein the entire cost of education is highlighted.
• -          Aadhar card and pan card of the student and the co-applicant.
• -          Age proof (aadhar card, voter ID, driving license, passport)
• -          Identity proof (aadhar card, voter ID, passport)
• -          Proof of residence (electricity bill, telephone bill)
• -          Income proof (recent salary slips, updated passbook, updated income tax return)

When banks or non-banking financial companies (NBFCs) are granting education loans, they take some things into consideration. Some ways to improve your education loan eligibility are:

• -          Score above average grades or get a high rank in qualifying exams such as GRE, GMAT, etc.
• -          Show a nice academic record.
• -          Make sure you get admitted to a top-tier or at least a reputed university.
• -          Make sure your co-applicant’s financial background is strong.
• -          Make sure your course has a strong prospect for employment.

We hope this article was informational when it comes to education loan eligibility. We wish you the best for your future endeavors!

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