Due to the rising cost of education, most students who aspire to study abroad or in India find it challenging to achieve their academic aspirations. But the easy availability of an education loan in India helps students achieve their academic aspirations by providing the necessary finance, which eases their financial worries.

One of the features of the best education loan in India is that it covers tuition fees, accommodation expenses, cost of living, library fees, travel expenses and other education-related expenses. Whether you are pursuing higher studies in India or abroad, you can avail an education loan for pursuing all kinds of courses – graduation, post-graduation and PhD. Many reputed financial institutions offer student loans for skilling, upskilling and vocational courses too.

Eligibility criteria of a student loan in India

To get a student loan, it is necessary to meet certain eligibility criteria. The conditions may vary from one financial institution to another; however, here are some basic education loan eligibility criteria as follows:

• An applicant must be a citizen of India.
• An applicant must have attained 18 years of age and have a good academic record.
• An applicant should have a confirmed admission before the final disbursal.

Important Note: The eligibility criteria of a study loan may differ from one loan provider to another.

Quick facts about an education loan in India

There are some basic facts associated with the education loan. Prior knowledge about these facts helps you to make an informed decision. The facts are as follows:

1. A co-applicant is necessary when you are applying for the loan. A co-applicant can include a parent, sibling, legal guardian, or relative.
2. Education loans are available for various courses like Engineering, Management, Healthcare, Arts, Architecture, and Hotel Management, to name a few. However, checking if your preferred course is recognised by your lender, before applying for the loan, is necessary.
3. The interest rate of the education loan varies from one lender to another. Lenders usually consider factors like students’ academic background, the value of the collateral offered, the co-applicant’s financial background, the pedigree of the university/educational institution and other factors before sanctioning an education loan.
4. Many students often commit a common mistake of shortlisting the education loan provider based on only one factor, i.e. rate of interest. However, please remember you have to consider various aspects before shortlisting the education loan. Your search for the best education loan in India will end if you consider the benefits offered by the lenders, interest rates, customer service, testimonials and other important factors.
5. Lenders want assurance that applicants have excellent employment prospects after finishing their education so that they can repay loans timely. Thus, they pay special attention to the course and the university before sanctioning the loan.

Important tips before applying for a student loan in India

Indeed, taking an education loan is the best way to cover your higher education cost independently. However, keep these crucial tips in consideration before applying for the loan:

• Consider your co-borrower’s financial liabilities and capabilities before applying for the loan.
• Understand the terms and conditions of the education loan carefully before choosing an education loan.
• Ensure you read the loan document carefully to avoid paying any hidden costs.
• Use the Education Loan EMI calculator to estimate your monthly education loan EMI.
• The education loans have a moratorium period of six months to one year, depending on the financer. The moratorium period is when a borrower does not have to make any education loan EMI payments. However, at Avanse Financial Services, we encourage our students to pay the interest either in the form of partial interest or simple interest. It is because the interest will start accruing soon after you take an education loan; hence, a small contribution will reduce the overall education loan amount.

Availing an education loan is one of the best ways to finance your education, especially when the cost of education is multiplying with every passing year. Feel free to connect with Avanse Financial Services to know more about education loans.