Factors that determine your student loan eligibility in India

Education loans take care of all the study related expenses that you incur while pursuing a course of your choice. The different types of expenses covered by the student loans are the costs of educational fees, tuition fees, study material, travel expenses, costs of accommodation, etc. However, there are times when you may require capital to take care of other miscellaneous expenses. But, you don’t have to worry because education loans cover all the additional costs that you incur while completing your higher studies. Yet, you cannot simply ask for an education loan from the commercial financial institutions. The banks and NBFCs (non-banking financial companies) grant education loans, only to the students who are deemed worthy. There are a certain student loan eligibility requirements, placed by financial institutions, which determine your eligibility.

The different factors that determine your eligibility for a student loan are as follows:

• Nationality: The first and the foremost deciding factor that decides your eligibility is your nationality. You need to be an Indian citizen, to apply for an education loan with the Indian banks. This encourages fellow Indian citizens to pursue higher education, which affects the overall growth of the nation.
• Age: Believe it or not, but there is an age limit in place for student loan eligibility. You need to be at least above the age of 18 years and below 35 years (in the case of a few banks), to qualify for the loan amount. Therefore, if you don’t make the age bracket then you won’t be eligible for the

education loan.

• Minimum qualifications: There are certain pre-requisite educational qualifications in place for loan eligibility. Thus, if you don’t meet with this criterion, you will not be deemed worthy of the loan amount. Also, the banks and NBFCs (non-banking financial companies) only grant a loan, to the students who have a meritorious background; meaning, the ones who have excellent credentials to their name.
• Co-signer: There must be an Indian citizen who is willing to co-sign the loan amount. He or she will be the primary debtor for the loan amount; meaning, the loan will be given in their name. This co-borrower can be any of your relatives, family members, etc. He or she should have a great source of income. Also, you can acquire a higher loan amount by making use of multiple co-borrower facilities provided by banks and NBFCs (non-banking financial companies). Therefore,

student loan eligibility required you to have a co-signer.

• Credit history and score: Your co-borrower need to have a good credit history with the banks and other financial institutions. The minimum benchmark set by most of the financial institution is around 750 (CIBIL score), which you have to meet. Thus, make sure that they have made timely repayments on all their past and current loans.

Educational course: The main reason why banks and NBFCs (non-banking financial companies) give out loans is to make profits. Thus, they need to be assured that you will be making timely repayments. The course of your choice is one of the deciding factors that determine your student loan eligibility.

An personal loan would be the first financial help for your family in your absence.