Here’s An Overview of the Eligibility required for an Educational Loan in India

An educational loan is a boon for parents and students alike. Students get the opportunity to study the course they want at the university of their dreams; parents are relieved from the worry of providing finances for their children’s higher studies. Moreover, with the skyrocketing costs of education in India, an education loan in India can seem to be the right choice. During the course of applying for an education loan, you will have to meet a set of eligibility criteria. In this article, we take a look at the basic eligibility criteria required for an educational loan in India.

Here are the basic general criteria set by leading lenders:

1. The primary applicant must be a citizen of India

2. The primary applicant must be 18 years of age or above

3. The primary applicant must have confirmed admission at the institute for the lender to disburse the loan

4. The agreement document for the educational loan in India should be signed by an earning co-borrower

It is also important to remember that the eligibility criteria of each lender will differ. Some lenders may have easier eligibility than others. Also, keep in mind that the lenders may have different requirements for documents required for education loan purposes.

Ways to boost your education loan eligibility

There are many ways that you can boost your eligibility. Let’s take a look at 2 such ways:

Ensure a good academic record

It is possible to get an education loan even though your academic performance has not been extraordinarily good. But one should remember that if one does have a good academic record full of excellent scores and participation in relevant events, then their eligibility not only increases but they may also receive score-based benefits.

Opt for a technical course

When you opt for a technical course, it gives you a higher chance of gaining a well-paying job. This increases the probability of you paying off the education loan at a convenient rate. This is why, opting for courses such as an MBA, engineering, and so on increases the eligibility of your education loan. Similarly, if you have gained admission into a well-known institute that ensures that you get the right job with a high salary, your eligibility for the educational loan in India will increase.

What other factors should you look for when choosing a lender?

While the education loan eligibility criteria is an important determinant, there are other factors as well that you should look for:

1. The types of expenses covered by the lender

Leading lenders ideally cover expenses related to not just your academic fees but also your study materials, rented accommodation, travel fare, caution deposit, insurance premium, and so on.

2. The alternative of collateral-free loans

You should check if you are getting the option of a collateral-free educational loan in India for the amount you want. This option should ideally be applicable for higher amounts as well.

3. Flexible repayment options

Having the option to repay the loan amount in a flexible manner really eases the whole process and makes you stress a little less.

We hope the information provided here has been helpful to you. Do ensure to read the terms and conditions before you go ahead with an educational loan in India. Thank you for reading!

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