Student Loans: Eligibility Explained.

With the rise in competition in the business sector, education has become increasingly vital for success. And so has a student loan in India. At the same time competition is also sky-rocketing and kids are looking for colleges outside India as well.

As much as these colleges abroad and in India are trying, education has become incredibly expensive. Technical, medical and management degrees can cost anywhere from 4-10 lakh in India and up to 25lakh abroad.

Since this is a big amount, not everyone can afford it without any financial help from outside. This comes in the form of loans. You can take a personal loan as well as an education loan to fund your higher studies.  However, a student loan in India is more beneficial in terms of repayment.

Getting a student loan in India is not as easy as getting a personal loan. An education loan is given to students and as such, banks demand more security in terms of repayment.

Financial institutions look at your finances as well academics to decide if you are eligible and what amount are you eligible for.

Some of these factors are:

• The applicant’s academic performance of the years. The consistency in the results, last semester results as well as any remarks or back subjects.
• The course subject, that requires the student loan in India, should be in demand. Getting jobs, post your education will ensure that you get a job and start repaying your debt. Hence, the course study that you are seeking the loan for has to be relevant to the requirements of the work force.
• Passing out from a reputed college means good campus recruitments as well as a higher chance of getting hired. Hence, financial institutions will look into the college you want the loan for. They will look at the reputation and standing of the college. The world rank of the college will also be considered.
• The financial institution will take into account if the collateral you offer is valuable enough and if it will cover the loan amount.

• In most cases, your parents or legal guardians sign as co-borrowers. The financial institution will look into the credit and finances of the co-borrower. It is easier for your loan to be approved if the co-signee has a strong credit-history and good finances.

Apart from this, there are other documents needed for the approval of your student loan in India. Without these documents your loan application is considered incomplete. Even if your finances are ready, your application may get rejected without these documents.

List of documents imperative for your education loan application:

• Letter of admission.
• Duly filled and signed loan application form.
• Latest passport size photographs.
• Statement of calculated cost of study.
• PAN Card of student and parent/guardian
• AADHAR card of student and parent/guardian
• Proof of identity
• Proof of residence
• IT returns or IT assessment order of the previous two years of the co-borrower
• Statement of assets and liabilities of

Hope this has been helpful, good luck and all the best!