3 things you need to know about education loan eligibility.
Education loan eligibility is perhaps one of the most essentials things one should know about before putting in an application for a student loan. If one does not pay attention to this vital factor, there is a real possibility that their education loan application could be denied. Not only is this extremely disappointing, but it could also turn into a sizable financial loss considering that the processing fee of an education loan could be as much as 2 percent of the loan amount one has applied for.
Keeping this in mind, the following article will list 3 important things any student borrower should know about education loan eligibility. Read on to know more and make informed borrowing decisions.
There are two levels of eligibility.
Right, the first thing you should know about education eligibility is that there are two levels. The first is the basic eligibility criteria – they determine whether or not you are eligible for an education loan. To clear this level of education loan eligibility, you need to an Indian citizen, you should be above the age of 18 and you should have a confirmed admission letter from your university. You must also have a guarantor who is an Indian citizen, above 18 years of age, has a steady income and a bank account with the facility to issue cheques.
The second level of education loan eligibility is the loan amount eligibility. It decides the loan amount you are eligible for. This is decided keeping in mind numerous factors. They usually include things like your academic record, the course & university you’ve selected, your job prospects after completion of the course, etc. Your financial status is also important, your lender will look into your family’s financial background, the credit score & loan worthiness of your guarantor, etc.
You can calculate your eligibility.
If you are worried about your eligibility, you can always check it online before applying. There are numerous sites that will have an education eligibility calculator. These tools will give you a rough estimate of your student loan eligibility. They will require some very simple details and provide your eligibility in seconds. For a more precise estimation of your eligibility, you can visit the lender’s branch or schedule a home visit to discuss the same.
You can increase your eligibility!
Yes, that’s right! You can increase your education eligibility. To begin with, if you have a stellar education background and academic record, you can push for higher loan amounts. If this does not help, you can always get higher loan amount by offering collateral to back your loan. This reduces the risk for lenders and they will in turn provide you more funding.
Most students are more concerned with education loan interest rates, the tenures, the tax benefits, etc. However, education loan eligibility is an equally important factor that needs to be considered before putting your name on the application from. Remember to go online and do your research regarding this topic before making any borrowing decisions. We hope this has been helpful, good luck and all the best!
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