Education loan criteria – everything you need to know!

Education loan criteria – ever heard of the term? Better known as education loan eligibility criteria or simply, eligibility criteria, these are a set of requirements that every lender will have – if you do not meet these requirements, you will not be eligible for the loan.

Apply for a loan without checking to see if you meet these criteria could result in two things – one, your loan is rejected and two, your processing fee is wasted. To safeguard you from both of these unfortunate events, the following article will tell you everything you need to know about the said eligibility criteria.

Types of education loan eligibility criteria.

Right, the first thing you should know is that education loan criteria are of two kinds – the first determines whether you are eligible for the loan and the second determines the loan amount you are qualified to get.

The former includes basic things like:

• You need to be an Indian citizen.
• You need to above 18 years of age.
• You need to have a confirmed letter of admission from the college.
• You need to have a co-borrower.
• Your co-borrower should be above the age of 18 and an Indian citizen as well.
• Said co-borrower should have a bank account and should be able to issues cheques.

If you meet all the requirements, you are eligible to apply for the loan.

However, how much of a loan you are eligible for depends on numerous other factors.

These factors include, but are not limited to:

• Your academic record
• Your entrance exam results
• The course you wish to study & its job prospects
• The college you have enrolled into
• Your family’s financial background
• Your co-borrowers financial background & credit score
• Whether or not you are providing collateral

Now, keeping in mind all these education loan criteria, it would become difficult to know just how much of a loan you are eligible for. So how does one check their education loan eligibility? Well, the answer is quite simple – just use an eligibility calculator!

What is an eligibility calculator?

It’s online tool that applicants can use before they apply for their loans to check their eligibility amount. It is quite simple to use and it is extremely helpful. All you have to do is log onto any lender’s website and look for the calculator. Find it and click on it!

You will be redirected to a page where you will have to fill some simple details such as your income & expenses per month and the interest rate of your loan. Based on this information, the calculator will churn out a rough eligibility amount. This is the ballpark amount you can apply for without worrying about a rejected application or a lost processing fee. It is highly recommended that all applicants use this tool before they decide to apply for a loan!

We hope this article has been helpful for you and that you now have a better understanding of education loan criteria for eligibility.

Good luck and all the best with your studies!