A few important factors that determine student loan eligibility

The numbers of students pursuing higher education have increased tremendously in the recent years. Students can no longer afford to shell out the exorbitant amount of money needed to pay for their education. Even after exhausting their life worth saving, parents are still unable to accumulate the amount of money needed in order to support their children’s education. But, thanks to the various financial institutions like banks and NBFC’s (non-banking financial companies), students can make use of an education loan provided by them; and self-finance their education. Thus, students can fund their own education and take away the looming pressure over their parent’s minds. The education loans provided by these banks and NBFCs (non-banking financial companies) are way easier to procure and way lower interest rates when compared with the traditional financiers. However, students need to fulfill certain student loan eligibility in order to become a successful receiver for the loan amount.

Education loans provided by financial institutions take care of all the money required by students in order to finance their education. These study loans take care of the various miscellaneous as well as other expenses incurred by the students such as college fees, tuition fees, cost of books and other study material, travel fees as well as the residential fees. The biggest advantage of these loans is the fact that they have flexible repayment options and cover a wide array of courses such as science, arts, commerce, business management, economics, engineering, medicine, etc.

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

• In order to be eligible for an education loan in India, you need to be an Indian citizen and be part of the age-group of 18 to 35 years. Other than that, you also need to have an earning member of the Indian society, who is willing to become a co-guarantor for the loan amount. This co-borrower shall be the primary debtor and he or she could be your parents, relatives, siblings or any other family members. You can procure a higher amount of education loans by presenting more number of co-borrowers.
• You need to present a certain amount of collateral in order to fulfill student loan eligibility criteria. This collateral could be any of your non-agricultural land, fixed deposits, residential property, as well as your life insurance policy. The collateral that you present to the banks and NBFCs (non-banking financial companies) should be equivalent to the loan amount that you wish to procure. These are exceptional cases when meritorious students are given special discounts.
• The course that you wish to opt for also plays a major role as it decides whether or not you are eligible for the loan amount. The reason why banks and NBFCs (non-banking financial companies) scrutinize your study course is that; they want to ensure that you will be able to repay the loan amount after landing a job- after completing your educational course.

The student loan eligibility is also determined by your academic record of the past. The reason being, these study loans are mostly given to the meritorious students who seem potential re-payers for the loan amount given by the financial institutions.