Whether you study in India or study abroad, quality education is essential to gain knowledge and develop your skills. Students these days opt for an education loan to fulfil their academic aspirations because they want to earn a self-made badge. However, you should conduct thorough research before opting for a student loan to understand the education loan process, terms and conditions, interest rates and other important aspects. One such aspect that you should know is eligibility criteria. Please remember that eligibility criteria will vary depending on the student loan provider.
The first step for getting a student loan is to ensure you clear the lender’s eligibility criteria. Here is a general list of eligibility criteria that every applicant should keep in mind:
Most education loan providers will cover courses from Indian universities, study abroad programs, vocational training, upskilling, reskilling and other programs from reputed educational institutions. However, please bear in mind that every lender will have a list of approved courses and universities. So, check if your education loan provider approves your preferred course and university.
Maintain good credit score
Maintaining a good credit score has a lot of benefits, one being that the applicant gets offered a better loan plan by the financial institution. Co-applicants have to maintain their credit history since the financial institutions will be reviewing their scores. Once you plan to take an education loan, ensure you have a good credit score for a seamless student loan journey.
Most financial institutions provide both secured (with collateral) and unsecured (without collateral) education loans. Each financial institution will have its own terms and conditions. Generally, the following types of collateral are accepted for education loans:
Some important documents required to take an education loan:
Co-applicant’s credit score plays a crucial role in determining the repayment capacity. However, in order to understand the employability potential of the student, the student profile is evaluated too. In fact, as a student-centric organisation, at Avanse Financial Services, we prioritise the student’s employability potential over the co-borrower’s credit score. So the parameters such as past academic performance, entrance test scores, the pedigree of university/institute and courses and the academic gap will be evaluated to determine the employability score of the student. If you meet the requirements of the education loan provider, your student loan will be disbursed.
So, these are a few eligibility criteria to keep in mind to ensure a seamless education loan journey. At Avanse Financial Services, we offer hyper-personalised education loans, 100% finance, quick sanctions, and other interesting multiple benefits. If you want more information, please feel free to connect with us. We will be glad to guide you in the right direction.