The GER (gross enrolment ratio) of India has gone up by almost 0.7 % in the year 2018. This GER is for the students pursuing higher education. This portrays that the amount of intellectual competition in India is only going to go up higher. Thus, education is the only means which will help one to survive this cut-throat competition. However, the meritorious students are finding it difficult to pursue higher studies because of the exorbitant cost of educational fees. Thankfully, there are a lot of banks and NBFCs (non-banking financial companies) which have started providing education loans. However, one has to fulfill the required education loan eligibility criteria to make use of them.
Reasons why study loan eligibility is of great importance:
- First and the most important reason, it helps you get an education loan. You can make use of the capital from an education loan to take care of your study-related financial needs. An education loan covers the costs of your college fees, tuition fees, cost of study material, travel expenses, residential expenses, etc.
- There are a number of courses covered by the study loans. These courses range from engineering, medicine, science, commerce to economics, hotel management, mass media, etc. Thus, students have a number of options in front of them to choose from.
- The loans offered by banks and NBFCs (non-banking financial companies) are way lower than those provided by traditional financiers. But the only way to get these loans is to fulfill the education loan eligibility criteria given by these financial institutions. Also, there are a lot of these financial institutions which provide special discounts to meritorious students and women. These discounts are offered to empower and promote the deserving candidates to pursue higher education.
The criteria to become eligible for an education loan are:
- The first criterion is a given; you need to be an Indian citizen to be eligible to apply for these loans. Also, there are a lot of banks which have kept an age limit for the applicants. Thus, now you need to be in the age group of 18 to 35 years to be eligible for an education loan.
- The co-borrower’s credit score and history also determine your education loan eligibility. Therefore, make sure that they’re making timely repayments on all of their previous as well as current debts.
- There must be an earning member of the Indian society willing to co-sign the loan amount. This co-signer shall be the primary debtor for your education loan. He or she can be any of your family members such as your mom, dad, siblings, relatives, etc. There are a lot of financial institutions which provide multiple co-borrower facilities. Thus, you can make use of these facilities and avail a higher loan amount.
- The banks and NBFCs (non-banking financial companies) also check your educational background and the course of your choice. Therefore, you need to clear all of your pre-requisite examinations to fulfill the education loan eligibility. The financial institutions check your educational course and your educational institute to make sure that you will be able to repay the loan amount.
Hope this article will help you understand the overall importance of study loan eligibility.