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All you Need To Know About An Education Loan

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As many top lenders are advertising about low interest personal loans, the families are intending towards taking so. The best personal loan interest rate is easy to avail of if you are eligible and have a strong repayment capacity. You may have had some concerns about what an education loan is and how to receive one after seeing terminology like collateral, margin, and other common jargon in most loan commercials. Here’s a quick rundown of everything.

Students apply for an education loan to help them meet the financial obligations of their course. Many Indian banks and non-bank financial companies (NBFCs) offer low-interest education loans to help educate the next generation of innovators and leaders.

Student loan Eligibility

Banks usually are willing to provide student loans to graduate or postgraduate professional and career-oriented courses such as medicine, engineering, and management. An offer letter or a conditional offer letter is frequently necessary to obtain an education loan from any bank. It may be difficult to obtain a loan for a school without an offer letter.

  • If you want to opt for a student loan, you must be an Indian citizen. 
  • They must have received confirmation of acceptance into a recognised educational institute in India or overseas.
  • During the loan application, the candidate’s age must be between 18 and 35 years old.
  • You must be opting for a graduate or postgraduate degree or it can also be a postgraduate diploma.
  • The applicant must be accepted into a college or institution connected with the University Grants Commission (UGC), the All India Council for Technical Education (AICTE), or the government.
  • Full-time students must have a co-applicant. A co-applicant can be a parent, legal guardian, spouse or parent-in-law if you are married. 

What variables are taken into account by lenders when making an education loan?

The following are the various considerations that lenders evaluate when providing an education loan:

  • The student’s academic history.
  • The occupation of the co-borrower.
  • The type of collateral you are willing to lend. 
  • The university in which the student has been granted approval for admission. 

What Are the Advantages of Taking Out A Student Loan?

  • The loan amount can vary according to the type of course or study. 
  • In some circumstances, even 100 percent funding is possible.
  • Other costs, such as the cost of a laptop or travel fees, are covered by the loan.
  • A flexible repayment option is available from the bank. After completing the course, the repayment period for an education loan might last up to 12 years.
  • Co-applicant(s) in an Education Loan can be parents or siblings.
  • Student loans are easily available and accessible. 
  • Overall best for bad credit payday loans.

What documents are required to apply for a student loan?

  • The offer letter or letter of admission from the recognized university. 
  • Application form (Duly signed and filled)
  • applicant and co-applicant in two recent passport-size color photographs (parents).
  • A breakdown of the course fee costs.
  • Both the applicant and the parents’ PAN and Aadhaar cards are required.
  • IT returns from the applicant and co-applicant over the previous two years (if available).
  • Proof of co-income applicant’s (salary statement).
  • The co-asset borrower’s and liability statement (bank statement, FD receipt).

The Bottom Line

The permission of the personal loan, accompanied by the interest rate and term offered, can be affected by many factors. These can be the applicant’s and the guarantor’s credit scores, bank history, paperwork submitted for the loan requirement, type of asset provided, the guarantee provided by a third party on your behalf, and other factors. Contact a bank representative to obtain these specific facts can assist you in obtaining the finest student loan package for your circumstances.

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