Education loan is a prudent choice as it bridges a gap between you and quality education. Besides, it enables you to finance your education independently without depending on your parents. So, if you are planning to opt for a student loan to study in India or study abroad, this article is for you. So, let’s understand a few student loan requirements that will make the education loan process easy for you.

1) Education loan eligibility criteria

Although the student loan eligibility criteria may vary depending on the education loan provider, here are some basic requirements to be eligible to get a student loan.

Eligibility for the student
  • If you are applying for an education loan, you must be an Indian citizen.
  • You must be 18 years or above.
  • You need to have a confirmed admission from your university. Educational institutions offer a Confirmation of Acceptance for Studies (CAS) letter once you secure a university seat in the respective university.
  • Most education loan providers will require a co-applicant to offer a student loan to you. Co-applicant can be your parent, sibling, legal guardian, or a relative.
Eligibility for the co-applicant/co-borrower
  • The co-borrower must be an Indian citizen.
  • The co-borrower must have a bank account in any bank in India that has cheque writing facilities.
Which courses are eligible for an education loan
  • Graduation, post-graduation, job oriented professional/technical courses, and professional degree/diploma courses offered by universities based in India or abroad.
  • Professional courses such as engineering, management, aviation, etc.
  • Degree/diploma courses offered by autonomous institutions such as IIT.
  • Courses offered in India by reputed foreign universities.
  • Vocational training, executive programs and other courses.
2) Some important documents

Imagine you have perfect academic scores, entrance exam scores and confirmed admission to your dream university. All that keeps you from achieving your academic aspirations is finance. But you are missing some important documents, which makes the education loan process complicated. To avoid this situation, you must ensure that all the documents are in place.

Here is the list of important documents

  • Academic transcripts
  • Student KYC including ID, residence and age proof
  • Course and fee details
  • CAS
  • 2 passport sized photographs
  • You need to furnish documents related to collateral if you have applied for a secured student loan.

3) If you are opting for a secured loan, you have to offer security against an education loan such as:
  • Tangible security or immovable property: Residential property
  • Intangible security or liquid assets: Fixed deposit, life insurance policy or government bonds.
4) Employability

The education loan lenders will analyse the student’s potential before processing the student loan. So, having an impeccable academic record and a good entrance exam score will increase your chances to get a student loan. Every financier will have specific criteria to evaluate your employability potential. Here are some common criteria to keep in mind when you apply for an education loan.

  • Student’s past academic performance
  • Entrance test scores
  • Pedigree of university/institute and courses
  • Continuity in studies
  • Educational institutions
  • Chosen study abroad destination (for overseas students) and more

So, these are some important eligibility criteria to keep in mind when you apply for an education loan. At Avanse Financial Services, we believe in empowering students, and hence we offer multiple benefits such as 100% finance, customised loans, fastest sanctions, flexible repayment options and more. If you need any help, we will be glad to assist you on your academic journey. All you have to do is connect with us. All the best!

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