6 factors that affect a student’s eligibility for getting an education loan in India

Education Loans have made pursuing higher education easier than it was before. Students often take refuge in education loans to finance the costs of their higher studies. But there are many students who miss out on reaping the benefits of education loans due to no knowledge about them. To improve your chances of getting an education loan, you have to know a thing or two about the factors that affect your eligibility to get one.

In this article, we will tell you about the factors that affect your eligibility to get an education loan in India. These factors are:

1) Citizenship

You have to be an Indian citizen to get an education loan in India, even if you plan to use the loan money to pay for your education costs outside the country. Get an ID proof that proves that you are a citizen of the Republic of India if you want an education loan.

2) Age

The second factor that affects your eligibility to get an education loan in India is your age. You have to be above 18 years of age—legally an adult—to get an education loan to fund your higher education either in India or abroad. Some lenders give education loans to students aged 16 but only under a set of certain conditions.

3) Academic Record

This is the most important factor in you getting an education loan for your higher studies. Your academic record not only governs your chances of bagging a seat at reputed universities but also the chances of you getting an education loan to pay your higher studies’ expenses. Keep an exceptional academic record. Score well in all of your exams. Be good in extra-curricular activities. Give your best in competitive exams that act as prerequisites to get admitted in your choice of university.

4) University and Course

Many lenders set certain criteria while funding students’ higher education costs. They keep a list of universities and courses that they will fund. You, as a student, have to bag a seat at those universities through your merit, choose a course that has good job prospects, to be eligible to get an education loan. Lenders even give students of reputed universities studying widely-acclaimed courses education loans at a lower interest rate than they would give students of other colleges.

5) Co-borrower’s Creditworthiness

This factor plays a vital role in the eligibility criteria for students to get education loans. You need to get a co-borrower who has a stable financial income, has a healthy financial status, and has a good credit score and credit history. A good score in these 3 aspects will improve your chances of getting an education loan in India.

6) Collateral

If you want to take an education loan of a higher amount, then the lender may ask you to pledge your financial assets as security against the education loan amount. Of course, there are lenders who take care of your entire expenses while providing unsecured loans.

So, these are the 6 factors that affect your eligibility to get an education loan in India. All the best!