Whether you or your child is planning to study abroad, apart from the specifics of the course, you also need to pay attention to the finances required to make your overseas education plans a reality. A common way to fund overseas programmes is to take a student education loan, which helps you meet the tuition fees, living costs, and travel expenses. To get started on the right foot, check the education loan eligibility criteria even as you prepare to make applications to colleges. This will help you get the funding you require on time.
If you are wondering how to get an education loan easily, you should know that meeting your financier’s criteria perfectly is the surest way for you to secure a loan without any hassles. Educational loan criteria are based on your age and the course you are opting for. Take a look at these factors one by one to determine whether you will get an educational loan.
Age
To get an educational loan, you must be an Indian national, having completed at least 18 years of age. In addition to this, you must consult your lender’s education loan information sheet to know about age rules corresponding to course types. For example, you may find that your child needs to be between 18 to 27 years of age to receive funding for a UG course. Similarly, age limits for a post-doctoral course may be extended even up to 65 years.
Academic history
Lenders are generally quite particular that your child has a decent academic history. The minimum requirement is normally 50% marks in previous examinations like the 10th and 12th standard. However, lenders may also ask you to furnish mark sheets of different exams, such as CAT, CMAT, GMAT, GRE, TOEFL, JEE, and NEET. The higher your marks are, the better are the chances of you securing an education loan.
Institution and course
If you are wondering how to finance an education loan from a bank more readily, then choose a job-oriented course. Having a professional or technical course reassures lenders about the repayment of loan EMIs. To ensure this, lenders may require that your graduation be done only at a reputed university and post-graduation be limited to courses like MCA, MS, and MBA.
Co-applicant and income proof
Most lenders will require that you apply for a loan with a co-applicant. This could be a parent, guardian, spouse, or even parent-in-law. Having a guarantor or co-applicant with a good credit or CIBIL score will boost your eligibility prospects. Lenders will ask your guarantor to furnish documents, such as bank statements, Form 16, and ITR of the last couple of years.
Lender policies
Taking an education loan in Delhi and an education loan in Chennai is not the same. This is because different lenders make different funding offers. Likewise, you will find different loan offers within one state corresponding to your income and educational background. For example, one may offer funding up to Rs. 15 lakh and another up to Rs. 20 lakh. Similarly, a certain lender will require security if you ask for a loan beyond a certain amount and another may not. Your lender’s education loan procedure documents or website will make these details known.
Schemes and scholarships
As you search for ways to get an educational loan, look out for scholarships and special schemes introduced by the government or financing institutions. For example, if you are searching for an education loan for girls, you can take advantage of the government’s Women Scientists Scheme or log on to the Vidya Lakshmi Education Loan Scheme to see loan offerings from myriad institutes.
Check here: Various education loan schemes by Government of India
If, after perusing through the education loan requirements, you realise that you are falling short in some areas, you need not put off your overseas education plans altogether. You can look out for an alternate source of funding that comes on simple eligibility terms like the Bajaj Finserv Loan Against Property for education.
You can conveniently use this secured loan in place of an education loan for abroad studies as it offers you substantial funding, nominal interest rates, and easy repayment options. Moreover, it may be more useful than regular student education loans in India, as it allows you to get more funding, as much as Rs. 5 crore*, or higher per eligibility, which you can use towards tuition fees, living expenses, overseas travel costs, buying course materials, and even for recreational activities.
The lengthy tenor of up to 20 years makes repayment easy. You incur the education loan interest on the amount of money you use and not on your total sanction. Additionally, it allows you to make interest-only EMI payments for the first four years of your tenor. All you need to do is pledge a residential or commercial property you own as security to get this loan. After your property is evaluated and your paperwork examined, you can enjoy a quick 72-hour loan disbursal*. This simple step gives you instant approval and access to customised deals so you can plan an overseas education without any financial hassles.
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