A look at 6 key factors that affect your education loan eligibility.

Education loans help students with money to fund their higher education fees and all other expenses related to academics. However, education loans have a set of strict factors that guide whether or not a student could get one. Those strict factors are called the education loan eligibility criteria. When students fulfill these criteria, they get a chance to avail themselves of education loans.

In this article, we will tell you about the 6 factors that govern your eligibility to get an education loan.

1) Citizenship

To get an education loan in India, irrespective of whether it is for higher studies in India or abroad, the student has to be a citizen of India. They should have proof like a PAN card, or other identity cards that prove their citizenship status.

2) Age

The student should be a legal adult to get an education in India. They should be at least 18 years of age. Some lenders, if they find the student to be exceptionally meritorious, allow them to get an education loan even if they are 16 years old.

3) Academic Record

As much as academic performance plays a role in students’ chances of getting admission into prestigious universities, it also plays a key role in the education loan eligibility criteria. Lenders have a strict criterion for academic performance, and performance in entrance exams that decides whether or not they sanction an education loan to a student. A student who has performed well in school, in extra-curricular activities, and in entrance exams gets an education loan of a higher principal amount and lower interest rate.

4) Co-borrower’s Creditworthiness

Apart from the academic performance of the student, the other important factor that decides a student’s eligibility to get an education loan is the co-borrowers creditworthiness. A student’s co-borrower should have sound financial income, strong financial status, and good credit history for the student to get an education loan. A co-borrower can be the student’s father or mother, legal guardian, or spouse.

5) Educational Institution

The educational institution or university that a student is admitted into plays an important role in the education loan eligibility criteria. Lenders finance a student’s higher education if the university the student is admitted into is accredited. Students get education loans with lower interest rates if their university has well-reputed.

6) Course of Study

Lenders approve educational loans to students who take up an accredited course for their higher education. If the course is widely acclaimed then students would have no difficulty in getting education loans to pay the costs of their higher education in those courses. In short, the course you choose to study plays an important role in whether you get an education loan. So, these are the factors that affect the education loan eligibility to get an education loan for higher studies. Make sure that you tick all these eligibity criteria so that you can get funds for your higher education.

All the best!.