Planning to take up an education loan for higher studies? With the government’s initiatives to reduce the rate of interests and offer flexible prepayment options on loans, students are considering it as a viable alternative. But how does one come to know whether he or she fits the student loan eligibility criteria of obtaining the loan?
- As far as age is concerned, the borrower has to be 18 years (18-35)or above.
- He/She must be an Indian citizen.
- The applicant must have a secure admission prior applying for the loan.
- Proper documentation such as address proof, identity proof, previous mark sheets will be required.
Education loans are of two types, secured and unsecured. To obtain a secured loan, the student will be required to produce collateral in any form of property papers, valuables, etc. Unsecured loans can be availed at the time of medical emergency or when in dire need of money because they have a comparatively higher rate of interest yet a very less repayment period.
Student loan eligibility does not become an issue if everything falls into place.Education loans are proven to be a very helpful tool in shaping the dreams of students who are hopeful towards achieving their career goal.By following an easy process, you can avail a student loan from banks and financial institutes. By availing a loan, you will not have to borrow from family or friends. Also, you will not have to sell out your property or valuable assets to obtain cash.
Many people believe that scoring well in academics will help eliminate their fees but the fact is that you only get financial relief up to a certain extent. The entire amount will not be covered by scholarships or grants. This may also not be the case for most of the banks. Some banks ask for a certain percentage or grade in order to sanction the loan amount. If you successfully satisfy all these criteria, you will be eligible to qualify for the loan. Other important criteria also need to be fulfilled such as availability of collateral, the reputation of the college/university applied for, etc. Your field of education will also be taken into consideration at the time of verification.
Student loan eligibility may also vary from lender to lender so it is essential that you go through the website thoroughly prior to applying for the loan. A little bit of comparison should be done before drawing any conclusion. There is a huge difference between a loan and a grant/scholarship.Both the types can be availed from government as well as non-government banks. The eligibility also remains the same with just one major difference, i.e in a scholarship you do not have to repay the borrowed funds back unlike a loan. You can apply for a loan even when you have a scholarship in hand. It will help to cover the remaining educational expenses which cannot be covered by the scholarship. Along with covering your academic fees, a loan will ensure that all your expenses such as your basic fare, tuition fees, hostel and mess charges if any, stationery needs will be covered.