Education loan or student loan, are advances made by banks or financial organisations for the purpose of meeting higher education expenses of the students. Under this special loan scheme, the meritorious students of the country having excellent educational qualification are offered financial help to study in renowned institutes in India and abroad.
Most of the Indian banks offer such loans to the deserving candidates at a low interest rate with flexible terms and conditions. Moreover, the documentation process is kept minimal to enable the students get the loan amount within a quick span without much complexity.
Find Education Loan interest rate here.
Education Loan EligibilitySince these loans are offered to brilliant students who are unable to meet the expenses of their higher education, the basic education loan eligibility is the academic excellence and achievements of the students. In other words, the eligibility of the applicants are assessed on the basis of their academic performance as cited in the mark sheets of previous exams.
The vital education loan eligibility criteria that the candidates need to fulfil to get approval for the loan are listed out here:
- The candidate applying for the loan must be a resident of India.
- He/she must have confirmed admission in recognised educational institutes in India or abroad.
- The age of the candidate must fall within the bracket of 18 to 35 years during loan application.
- He/she must be undergoing a graduate/postgraduate degree or a PG diploma.
- The applicant should have a secured admission in a college or university affiliated by UGC/AICTE/Govt. etc.
- Students pursuing full-time courses need to have a co-applicant who can be either parent/guardian or spouse/parent-in-law (in case of married candidates).
Education Loan Eligibility Tabular representation
|Age||Minimum- 18 years Maximum- 35 years|
|Academic record||Proven- good|
|Qualification||Pursuing graduate/postgraduate degree or a PG diploma.|
|University Applied to||Recognised – In India/Abroad|
|Security||Tangible collateral or guarantor- depending on the loan amount and income source.|
Education Loan Documentation
As told earlier, education loan documentation doesn’t involve any hard-core paperwork. The process is simple and can be conducted online without paying physical visits to the banks. However, the process might vary depending on the criteria set by various banks or lending organisations. Also, the banks being very strict in their terms, failure to submit the mandated documents will lead to rejection:
Here are the mandatory documents that a student need to provide to the banks while applying for a student loan:
- Duly filled and signed application form with affixed photographs
- 2 photographs of passport size
- Copy of exam mark sheets of 10th/12th or latest education certificate
- Statement of course expenses/cost of study
- Aadhaar Card and Pan Card of the student and Parent/ Guardian
Copy of Aadhaar Card /Voter ID/Passport/Driving License
Copy of Voter ID/Aadhaar Card/Driving License/Passport
Rental agreement/Bank statement of 6 months of the student or co-borrower/guarantor/Copy of Ration card/Gas Book/Electricity Bill/Tel Bill
- Most recent salary slips or Form 16 of the parent/ guardian/co-borrower
- 6 months bank statement of the borrower or updated passbook of bank
- Updated ITR (Income Tax Return with income computation) of 2 years or IT assessment order of last 2 years of parent/co-borrower/guardian
- Documents stating the assets and liabilities of the parent/co-borrower/guardian
What will Improve Your Eligibility for an Education loan?
In order to make sure that the monetary help reaches the worthy students, banks are very strict in assessing the eligibility of the candidates. The overall academic excellence of the students, their future course of education and status of current admission are the basic parameters that evaluated before giving a loan approval. Hence, working on the following areas will improve your eligibility for an education loan:
- Scoring high grades/ranking in the qualifying exams
- Displaying good academic record
- Getting admission in a reputed/top-tier institute or university
- Strong financial background of parents/guardians/co-borrower
- Displaying good prospects for future employment/income generation
How to Know Your Eligibility for an Education Loan?
Before applying for an education loan from any of the top banks, you can check your eligibility in advance. You can know your eligibility by conducting an online check on the Bank Bazaar website. At Bank Bazaar, all you need to do is provide basic, key background details required to qualify for an educational loan. Based on this data, results for suitable education loan offers are displayed in an easy-to-compare manner. Users can then apply online for the most appealing offer and avail unique deals as provided by Bank Bazaar to its users through collaborations with its partner institutions.
Procedure to check eligibility
- Visit the official website of Bank Bazaar.
- Go to the ‘Loan’ section and click on ‘Education Loan’ tab.
- Alternately you can also hit the ‘Apply Now’ tab present on the website to get redirected to the education loan page.
- Next, fill up the given form with your particulars and course details like your location, course level, country of study, course of study, name of university, expected course expenses, and course duration along with the details of the co-borrower and collateral.
- Based on your particulars, the site will then show you suitable loan offers from their bank partners.
- You can choose the most advantageous offer from the given options and then apply for the same through the Bank Bazaar portal.
- Since the process of education loan is so easy and the terms are flexible, it has opened up ways for the deserving students to opt for this loan and fulfil their desires of pursuing higher studies in their preferred institutes in India and abroad. Whether you are a student, or working professional, if you fulfill the criteria mandated by the banks, you will be eligible to get a education loan to meet up the expenses of your future course of study.
- What are the different factors that are considered when lenders provide an education loan?
The different factors that are considered when lenders provide an education loan are mentioned below:
- The student’s academic background.
- The co-borrower’s job profile.
- The type of collateral that is being provided.
- The university where the individual has secured admission.
- Will the lender levy any processing fee on the education loan?
Yes, depending on the amount of loan that is availed, the lender may levy a processing fee.
- Can I change the loan from a fixed rate to a floating rate?
Yes, you can change the education loan from a fixed rate to a floating rate.
- Would there be any charges levied in the case of late payments?
Yes, lenders levy a penalty in the case of late payments. Depending on the lender, the charges may vary.
- In case my loan application is rejected the first time, can I apply for a loan again?
Yes, you can apply for an education loan in case your application is rejected the first time.