Education Loan Eligibility criteria

Education Loan Eligibility criteria can be termed as the requirements that need to be fulfilled by the borrower before applying for an education loan. An education loan is availed to pursue higher studies within the country or in a foreign nation. Education loans can be availed by parents or students themselves and the prime purpose of getting a student loan is to cope with the rising cost of tuition, college and university fees. There are a lot of educational loan programs and you must choose exactly the one which fits your financial stature.Lenders have now started offering student loans with very flexible repayment options which has simplified the entire process thus making it easier for aspiring students to find a reliable source of availing loans. Many students have to give up on their dreams just due to lack of financial backup. Taking this into consideration, the government often keeps on introducing innovative loan schemes to benefit the young lot. Off lately, even private banks and financial companies have started offering loans with interest rates as low as 12.75% with a processing fee of mere 1-2%. Over the past few years, there has been a consistent rise in the number of borrower’s opting for such loans.

Education Loan Eligibility criteria for borrowers is between 18 to 35 years of age. He/She should have a co-applicant who can be equally responsible for borrowing the loan. The borrower’s parents, siblings, or spouse can become co-applicants. A salary slip may be demanded by the lender as a document proof indicating that the co-applicant has a steady source of income and is capable of repaying the debt.Only when there is an acute shortage of funds, you should consider taking up a loan. Students with lack of monetary assets can plan accordingly as to how they will be able to repay the loan amount. Try and choose career oriented courses with better job placement opportunities after completing the course. It is quite understood that loans availed for pursuing studies in a foreign nation would be expensive as loans availed for studying in your own country.

Banks offer loans of many types, but borrowers and co-applicants must bear a few things in mind to get qualified for the loan. All the Education Loan Eligibility criteria set up by the bank/financier need to be followed.You can find all the relevant information, terms and conditions on the relevant banking website, so go through it carefully before applying for the loan. Attach all the required documents along with the application form. The most unique feature associated with an education loan is that you do not have to pay back the loan till the time you complete your education. As soon as you secure a job within 6-12 months of the course completion, you can begin paying the funds in the form of EMIs. The EMIs are divided into equal parts so that the borrower can finish paying them within the given time frame and at the end of the repayment tenure. Do not skip paying your EMIs as it would reflect on your credit score. A bad credit score decreases your chances of availing a loan in the future.

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