In the past, students would rarely choose to study any further than needed. Today, with the growing availability of knowledge both in and out of the country, students are opting to study further. Pursuing higher studies has known to have reflected positively on the academic profiles of students. Being highly suggested for students with the scope of pursuing high professions, these courses also have high admission fees as well. Lack of finances has nothing on you if you have the right bank or NBFC to help you financially.
Applying for education has been made simple through the online services by banks and NBFCs. Here are 5 essential education loan requirements that every student much keep a track of while applying online or offline:
1. Basic Eligibility
Three of the most basic education loan requirements for eligibility are that the student applicant must be an Indian citizen, between the age group of 18 to 35 years and have a co-borrower who is also an Indian citizen. The eligibility for applying are simple and anyone able to fulfill these can apply for the loan.
To get the needed education loan, the student must fulfill other criteria as set by the loan giver. These are not always made known as they are not constant among all lenders.
2. Guarantor
A guarantor or the co-borrower is a person who takes the loan with the student. This person vouches for the student. The guarantor need not necessarily be the student’s parent or sibling. It is usually preferred that the guarantor be related to the student in some way. This co-borrower is regarded as eligible when they too are Indian citizens having an Indian bank account with a checkbook service.
The co-borrower’s salary is also considered while deliberating over the loan approval.
3. Academic history
Among other education loan requirements, the students’ past academic history plays a major role. For students who wish to apply for a slightly bigger loan, the loan provider may give the student a lower interest rate to the student. The loan giver may also take into consideration the mark sheets of the students SSC/HSC and/or the students’ most recent course. The results of entrance exams are also taken into consideration. It is suggested that students maintain an excellent academic early on to earn the benefits during admission and also during the loan process.
4. Documents
It is very important to submit the needed documents for the loan. Submitting the needed documents on time will help in a faster verification and approval process. There are multiple education loan documents to be submitted at the time of application. Therefore, preparing a proper checklist is important to keep track of the documents. Depending on whether it is a study loan for education in India or a study loan abroad, the documents vary. Documents for identification verification, address verification and mark sheets need to be submitted. Education loan documents for verification of the co-borrower include their income proof and other identification related documents. Other detailed information regarding the university and the fee structure also need to be submitted. If the student makes a mistake in the documentation process, it leaves the students’ application at the risk of rejection.
5. Collateral
Collateral is asked to be kept in place for loans that exceed 7 lakh. One can keep land, jewelry, or other assets as collateral for an education loan. Usually bigger loans, the lenders usually ask the student to appoint a third guarantor. Documents submitted for collateral verification must be thoroughly checked to avoid any hassles.
Education loan requirements should not be fake or outdated. So, follow the list and stay on top to get the process running smooth. Hope this has been helpful.
