Education loans, often known as student loans, are advances granted by banks or financial institutions to help students pay for their higher education expenses. The talented students of the country with good educational qualifications are granted financial assistance to study in prominent institutes in India and abroad under this special loan scheme.
As these loans are available to students who are unable to cover the costs of their higher education, applicants' eligibility is determined by their academic performance as shown in prior exam mark sheets.
The vital education loan eligibility criteria that the candidates need to fulfil to get approval for the loan are listed out here:
As told earlier, education loan documentation doesn’t involve any hard-core paperwork. The process is simple and can be conducted online without paying physical visits to the banks. However, the process might vary depending on the criteria set by various banks or lending organisations. Also, the banks being very strict in their terms, failure to submit the mandated documents will lead to rejection:
Here are the mandatory documents that a student needs to provide to the banks while applying for a student loan:
1. Age proof
Copy of Aadhaar Card /Voter ID/Passport/Driving Licence
2. Identity proof
Copy of Voter ID/Aadhaar Card/Driving Licence/Passport
3. Residence proof
Rental agreement/Bank statement of 6 months of the student or co-borrower/guarantor/Copy of Ration card/Gas Book/Electricity Bill/Tel Bill
4. Income proof
Banks are quite cautious in analysing the eligibility of candidates in order to ensure that monetary aid reaches deserving pupils. Before approving a loan, the basic characteristics that are considered are the students' overall academic quality, their prospective path of education, and their current admission status. Hence, working on the following areas will improve your eligibility for an education loan:
Before applying for an education loan from any of the top banks, you can check your eligibility in advance. You can know your eligibility by conducting an online check on the BankBazaar website. At BankBazaar, all you need to do is provide basic, key background details required to qualify for an educational loan. Based on this data, results for suitable education loan offers are displayed in an easy-to-compare manner. Users can then apply online for the most appealing offer and avail unique deals as provided by BankBazaar to its users through collaborations with its partner institutions.
Follow the steps mentioned below to check your eligibility for an education loan:
Step 1: Visit the official website of BankBazaar.
Step 2: Go to the ‘Loan’ section and click on ‘Education Loan’ tab.
Step 3: Alternately you can also hit the ‘Apply Now’ tab present on the website to get redirected to the education loan page.
Step 4: Next, fill up the given form with your particulars and course details like your location, course level, country of study, course of study, name of university, expected course expenses, and course duration along with the details of the co-borrower and collateral.
Step 6: Based on your particulars, the site will then show you suitable loan offers from their bank partners.
Step 7: You can choose the most advantageous offer from the given options and then apply for the same through the BankBazaar portal.
Since the process of education loan is so easy and the terms are flexible, it has opened up ways for deserving students to opt for this loan and fulfil their desires of pursuing higher studies in their preferred institutes in India and abroad. Whether you are a student or working professional, if you fulfil the criteria mandated by the banks, you will be eligible to get an education loan to meet up the expenses of your future course of study.
The different factors that are considered when lenders provide an education loan are mentioned below:
The student’s academic background.
The co-borrower’s job profile.
The type of collateral that is being provided.
The university where the individual has secured admission.
Yes, depending on the amount of loan that is availed, the lender may levy a processing fee.
Yes, you can change the education loan from a fixed rate to a floating rate.
Yes, lenders levy a penalty in the case of late payments. Depending on the lender, the charges may vary.
Yes, you can apply for an education loan in case your application is rejected the first time.