The number of students opting for hassle-free loan options for higher Education Loan Eligibility has gradually increased over the years. The total educational loan disbursal portfolio increased by 9.25% to a total of Rs.82,600 crore during FY18.
There has also been a rise in the average loan amount disbursed from Rs.6.8 lakh in 2017 to Rs.9.6 lakh in 2018.
Education loans can be considered as a means of meeting expenses associated with costly higher education programmes. A proper estimation of such costs can help manage your finances in the future.
A study loan calculator can provide an approximation regarding the total amount payable after availing an education loan scheme. Nonetheless, in order to avail a loan, students must fulfil certain eligibility as determined by specific financial institutions.
Here is a list of all such eligibility and documentation usually required by a student applying for an education loan .
Eligibility required for an educational loan
- Students must be a citizen of India.
- Candidates should have an excellent academic background, or as specified by the financial lender.
- Applicants should have secured admission in a reputed educational institution.
- Candidates must have already qualified for the desired educational establishment before applying for any loans. Financial institutions can ask for admissions proof before approving the loan.
How to improve eligibility for education loans?
Financial institutions are usually rigorous while assessing the profiles of students applying for education loans. The future courses of education, overall academic career, the reputation of the currently admitted institute are some factors taken into consideration while assessing a student’s profile.
Here are a few ways students can improve their eligibility for an educational loan.
- Scoring better grades in examinations.
- Maintaining a consistent academic record.
- Acquiring admission to reputed educational establishments.
- Ensure promising future employment opportunities.
In order to know your eligibility, you can visit a financial institution’s official website to see their requirement. You can even use a study loan calculator to calculate how much you have to pay at the end of the repayment tenor.
Once you have the necessary details, you can contact your lender directly regarding the procedure to apply for an educational loan.
Documents required to avail educational loan
Different financial institutions may ask for various documents. Nonetheless, here is a list of some standard documents required by most lenders.
Documents for students
- Mark sheet of the last
- Identify proof, such as PAN/Voter ID card/Passport/Driver’s license.
- Residential proof such as telephone bill, electricity bill, etc.
- Admission proof from a recognised university.
- Tentative expense statements.
- Account statements for previously applied loans, if any.
Difference between educational loans and educational loans against property
Availing educational loans can be difficult, mainly because of the list of qualifications. Financial institutions often employ strict screening practices and usually provide loans to those individuals with higher academic records.
However, an educational loan against property does not involve any such procedures. The funds availed comes with no end-usage restrictions.
Hassle-free documentation and application procedure cause most students to apply for a loan against property for education.
Additionally, you should also know about the factors that can affect the interest rate for your loan against property in order to avail the lowest possible rates. You can even use a study loan calculator to compare all available rates.
The documentation and eligibility procedure associated with availing an educational loan can be quite strict. Students should maintain a clean and promising academic record and opt for educational institutions that are usually preferred by the lenders, to maximise their chances of availing an educational loan.