Education can be an expensive affair. However, this doesn’t discourage the students from pursuing their studies, thanks to education loans. Did you know that education loans are in high demand amid rising education costs? So, let’s find out answers to questions such as what is the education loan qualification, what is the amount you are eligible to borrow, and so on
Key highlights:
- Why is Student Loan a Prudent Choice?
- What You Must Know About Education Loan Qualification?
- Some Common Education Loan Qualification
- Education Loan Qualification – Courses and Universities
- Student Loan Qualifications – Amount
- Education Loan Qualification – Student Profile
- FAQs
Why is Student Loan a Prudent Choice?
Students these days don’t want their parents to pay for their studies. Instead, they aspire to fund their education independently. With education loans, students can earn their self-made badge by taking responsibility for the repayment of the education loan.
Furthermore, there will be no need to settle for lesser-popular colleges or courses. Student loans cover the holistic cost of education, including tuition fees, accommodation costs, living expenses, travelling expenses, the cost of learning devices and other education-related costs. Therefore, the student can access quality education at their dream university.
By repaying the education loan responsibly, you can build a healthy credit score. This will unlock several benefits when you opt for other financial solutions, such as a car loan, home loan, or credit card. Moreover, there will be no need to liquidate your family savings or assets. You can let your savings be savings, which can be utilised during health or other emergencies.
Also Read: How to Get an Education Loan: A Brief Guide
What You Must Know About Education Loan Qualification?
When you opt for a student loan, it is essential to understand the qualification for an education loan. So, before applying, it is advised to conduct thorough research to understand the standard and lender-specific student loan qualifications.
Some Common Education Loan Qualification
- Students can apply if they:
- Are Indian citizens who are 18 or older
- Have a confirmed admission before the final disbursal
- Have a co-borrower who earns in India
- Co-borrowers also need to meet the following education loan eligibility:
- Must be an Indian citizen and should be a parent, legal guardian, sibling or other blood relative
- Must have a bank account in India that allows them to sign cheques
- Must be the primary debtor
Education Loan Qualification – Courses and Universities
You can obtain an education loan for a wide range of courses, including mainstream programmes such as STEM and MBA, as well as offbeat courses like Food Technology and other skilling, upskilling, reskilling, and vocational study programmes.
When considering student loan qualifications, please note that many lenders have partnerships with universities to facilitate a seamless student loan process. Therefore, it is recommended to check with your chosen education financing partner if they have a tie-up with your preferred university.
Student Loan Qualifications – Amount
You can try our Education Loan Eligibility Calculator to understand the approximate amount of student loan you are eligible to borrow based on your current finances. The elements required to enter into this calculator are monthly income, monthly obligations, approximate student loan interest rate, and tenure (in months). This will provide you with clarity about the qualification for an education loan amount.
Education Loan Qualification – Student Profile
When you apply for a student loan, your lender will thoroughly evaluate your student profile to determine your employability potential. Therefore, for student loan qualifications, your education loan provider will examine parameters such as your academic scores, entrance exam scores, and the pedigree of your university, to name a few. Furthermore, your co-applicant’s financial background will also be analysed. If you meet your education loan qualification, your student loan will be approved.
At Avanse Financial Services, we offer an education loan for studying abroad as well as for pursuing studies in India. If you have any questions, please share them with us. We will be glad to partner with you on your academic journey.
Frequently Asked Questions
Can I get a ₹ 25 lakh education loan without a property?
Secured (with collateral) and unsecured (without collateral) student loans are available. You need to choose between the two based on your financial needs and personal preferences. Whether you select a secured or unsecured student loan, you will need to meet the eligibility requirements.
Additionally, the amount will depend on various factors, including the cost of education and your parents’ financial background. To better understand this, you can try our Education Loan Eligibility Calculator.
How much salary is required for a student loan?
Education loans are designed with the understanding that students are usually first-time borrowers who don’t earn a monthly income. Therefore, a student’s profile and parents’ financial background are evaluated by financial institutions.
