Education loans have empowered numerous students to pursue higher education both in India and overseas, removing financial barriers to a successful career. Despite the widespread benefit, there remains uncertainty around the fundamental aspects of education loans. In this blog, we will address inquiries such as “What’s my loan eligibility?”, “How much can I borrow?” or “rate my chances of getting into university for masters”. This blog serves as our endeavor to offer clarity on these questions and provide valuable insights into loan eligibility, aiming to guide students on their educational journey. Let’s dive in and address these crucial aspects.
Availing of Education Loan?
Education loan eligibility is a multifaceted process, subject to various criteria that shift at different stages of the application. Initially, for a student to commence the education loan application, specific prerequisites must be fulfilled. These include holding Indian citizenship, securing admission to a recognized university in India or abroad through merit or entrance tests, opting for a career-oriented course, and achieving a minimum of 50% in the last qualifying examination. These foundational criteria represent the fundamental requirements for initiating an education loan application from any lender in the market. Subsequently, the loan application undergoes further evaluation based on additional specifications.
Eligibility for Education Loan
Secured education loans involve pledging collateral to determine the borrowed amount, with eligibility criteria including collateral value equal to or exceeding the loan amount, submission of complete and original collateral documents, and furnishing property-related papers like the Registered sale deed and occupancy proof. GyanDhan streamlines this process by providing a comprehensive list of required documents. The decision in secured loans is influenced by collateral value and the student’s academic profile.
On the other hand, unsecured education loans, not requiring collateral, necessitate an earning co-applicant. Eligibility hinges on factors such as the student’s academic profile, future earning potential, course and college ranking, co-applicant’s income, and credit history. GyanDhan simplifies the application process by offering clarity on the required documentation.
What Decides If You Qualify for an Education Loan?
Several factors play a crucial role in determining the eligibility of an education loan:
- Academic Profile: A strong academic history often enhances eligibility.
- Course and College Ranking: The reputation and ranking of the chosen course and college impact eligibility.
- Co-Applicant’s Income: The earning capacity of the co-applicant, usually parents, is a significant factor.
- Credit History: A positive credit history for both the student and the co-applicant enhances eligibility.
- Future Earning Potential: The prospective earning capacity of the student after completing the education is considered.
- Collateral (for Secured Loans): Providing valuable collateral can influence eligibility and loan amount.
- Loan Amount: The total loan amount sought also affects eligibility criteria.
- Documentation: Submission of all required documents, including academic and financial records, is essential.
Each lender may have specific criteria, and understanding these factors can help applicants assess and enhance their eligibility for an education loan.
In conclusion, understanding the intricate details of education loan eligibility and the accompanying documentation is pivotal for students navigating the path to higher education. This blog aimed to shed light on common queries surrounding loan eligibility, borrowing limits, and the evaluation process. Whether opting for secured loans with collateral or unsecured loans with a co-applicant, GyanDhan strives to simplify the application process by providing clarity on required documents. Recognizing the significance of academic history, course ranking, co-applicant’s income, and more, empowers applicants to navigate the complexities and make informed decisions on their educational journey. By demystifying these aspects, GyanDhan aims to facilitate students in realizing their aspirations without financial hindrances.