Education Loan Eligibility

Education Loan Eligibility Details

Education loans are sanctioned by the banks or NBFCs to students for educational expenditure incurred while pursuing higher education. The education loan offers financial help to students to help them continue their education and fulfill career goals. An applicant must secure admission in a reputed institute in India or abroad. The banks offer these loans to meritorious students at a lower interest rate and flexible terms and conditions.

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Education Loan Eligibility:

An education loan is sanctioned to Indian nationals for pursuing education in India or abroad, wherever admission is secured. Education loans are offered to students who want to pursue higher studies but are unable to meet the expenses of higher education. This type of loan is given to students, so that they can fulfil educational commitments. The basic eligibility of an education loan is academic excellence and achievements.

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Education Loan Eligibility criteria:

To get an education loan approved, there are some basic eligibility criteria that need to be fulfilled. The eligibility criteria of education loans are as follows:

• The applicant must be a resident of India.
• The applicant must secure admission in a university or a college before applying for the loan.
• The applicant must fall within the age bracket of 18 to 35 years.
• The borrower must have secured admission for a graduate /postgraduate course or a PG diploma.
• Students pursuing full-time courses must have a co-applicant who can be either a parent or guardian or spouse of the applicant.

Education Loan Documentation:

Availing an education loan is easy compared to other loans as there is not much documentation or paperwork involved. The process of applying for education loan can be done online. Though the process is simple, it might vary depending on the bank. To avail education loan, there are a set of documents that need to be submitted.

• Admission letter
• Duly filled and signed loan application form.
• 2 recent passport size photographs.
• Statement of cost of study.
• PAN Card, AADHAR card of student and parent/guardian.
• Copy of exam mark sheets of 10^th/12^th or latest education certificate
• Age proof: Copy of Aadhaar card, voter ID, Passport.
• Proof of identity: Copy of voter ID, Aadhaar card or driving license.
• Proof of residential address: Rental agreement, utility bills or telecom bills of the last 3 months.

Income proof:

• 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.

Education loan eligibility calculator:

Education loan eligibility calculator helps you get an estimate on the loan amount you can borrow from the bank or financial institutions depending on your age and the co-applicant’s details.

This clearly states the eligibility criteria required for quick and easy loan approval. You can also find out how much EMI is to be paid at a given rate of interest and tenure.

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Courses eligible for educational loans:

An applicant can apply for education loan if he/she is pursuing the following courses:

Courses in India:

• Regular Degree or Diploma Courses conducted by autonomous institutions like IIT, IIM and so on.
• Teacher training and Nursing courses approved by Central government or the State Government.
• Courses like Graduation or Post-graduation including regular technical and professional Degree or Diploma courses conducted by colleges or universities approved by UGC/ AICTE/IMC/Government.
• Regular Degree/Diploma Courses like Aeronautical, Pilot training, shipping approved by concerned regulatory authorities.

Studies abroad:

• Courses conducted by CIMA – London or CPA – USA.
• Job oriented professional or technical Graduation Degree courses.
• Post Graduation Degree and Diploma courses like MCA, MBA, MS offered by reputed universities.

Eligible institutions:

The applicant, who wishes to pursue higher education by availing an education loan, must secure admission in a reputed college or university. The institute must be affiliated by recognised government authorities like UGC or AICTE. The institute in which the applicant has secured admission must not be listed under deemed college or university. 

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What will improve Your Eligibility for an Education Loan?

The banks have strict guidelines and rules to assess the eligibility of candidates.  The eligibility of the applicants is assessed on the basis of their academic performance as cited in the mark sheets of previous exams. In order to make sure that the funds are made available to meritorious students, there are certain parameters on which the loan is sanctioned. The overall academic excellence, courses applied for and current status of admission are some of the parameters on which the student is evaluated.

Below given are some of the points that will help improve the eligibility for an education loan:

• Good academic record
• Scoring good grades in the qualifying exam
• Securing admission in a reputed institute
• Displaying good prospects for future employment.

The education loan has helped deserving students fulfil their desires of pursuing higher studies in their preferred institutes in India and abroad. The process of applying for an education loan is easy and the amount borrowed is repaid in easy EMIs after six months of employment or completion of the course.

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