Education is quite expensive in our country. If you want to get a quality education without breaking a bank or burdening your guardians, then an education loan is a way to go. To avail a student loan, there are specific prerequisites that you need to satisfy in the first place.
Let’s have a look at the eligibility criteria for getting a student loan in India.
An applicant ought to be an Indian National.
Age bandwidth for the student loan ranges between 18-35 years.
The applicant who seeks education loan should have confirmation regarding admission to a college/university by the UGC/Government/AICTE/Appropriate authority.
An applicant must have qualified exams with an aggregate percentage of 60. The application process might not be the same for all banks. Here are fundamental steps that will help you secure a student loan.
The first steps to secure a loan always start with a registration form and student loan is no exception here. Every applicant has to go through this paperwork, which may demand the following requirements.
If an Applicant/candidate seeks an education loan to study abroad, then the following documents will be needed to cater to that requirement.
Once the candidate fills up the application form successfully, a personal discussion round will be conducted with the applicant by the bank professionals. Once they satisfied with the candidature of the applicant, the documentation process will be initiated.
Before the bank considers the loan application, the applicant has to provide some crucial documentation related to admissions. The bank then thoroughly check the documents and point out the unnecessary elements that may create a hassle for the disbursement of the loan.
If the loan amount exceeds Rs 4 Lakh, then the applicant has to submit collateral security, such as FDs, to the bank.
A guarantor is mandatory when it comes to student loans. The guardians could act as a guarantor for the applicant. The bank, before approving the student loan, will conduct a verification process of the guarantor and his/her credit history.
If the bank is not satisfied with the candidature of the applicant in any regard, then the bank is entitled to deny the applicant’s loan.
Once the applicant completes the formalities mentioned above, the bank will disburse the loan. The bank will take care of the college/institute fee by paying out expenses directly to the concerned institute.
Now the availment of the student loan is more comfortable as compared to other loan and it is also subjected to the lucrative interest rates. The prowess of the internet has redefined the way we interact with the paperwork of loans.
Nowadays, users can take advantage of the online application to initiates the loan process. You don’t need to meet the bank professional in persons all the time until the final approval of the loans. The online process has made the loaning process easier than ever.
Before you rush to your nearest bank to apply for the loan, let have an idea of what type of expenses does bank generally covers under student loans.
So before we wrap up this blog, let have a quite recap of the information mentioned above.
So, that is all about education loans. We hope this blog has brief you everything regarding the traits of student loans in India. If you have a question in your mind, please feel free to submit your queries to Rhino Finance in the comment section.
Also, Read: Guide to Getting Approval for Your Personal Loan.