A Guide To Education Loan Criteria
A quality, well-rounded education is extremely important
for any individual that wishes to make something of themselves in today’s
world. And students today are well aware of that. That is one of the major
reasons that many students go above and beyond to educate themselves as much as
they can. However, among the many obstacles they face, the rising cost of
education is one of the biggest one. In such a situation, the best solution is
to apply for an education loan.
An education loan is basically money borrowed by
students for their educational requirements. It is also the abundantly
available option for funding your education as most banks and NBFC’s offer
education loans. However, just because the option is available does not mean
you can just opt for it.
Most lenders have a rigid set of education
loan criteria that every applicant needs to fulfil. Here is a set of
criteria that every applicant must fulfil to avail an education loan:
Applicant-
-An applicant is basically the student that is
pursuing funds for higher education.
-The applicant must be 18 years of age or more.
-The applicant must a bonafide citizen of India.
-The applicant must have confirmed admission in
his/her institute before the education loan is disbursed.
-The applicant must have a co-signee to apply for
an education loan.
-The co-signee/co-borrower should be an earning
individual in India.
Co-borrower-
A co-borrower is an essential for taking an
education loan. The reason for that is the students borrowing the loans have no
current source of income. Hence, the lender cannot have any proof that the
student will be able to pay back the loan. The co-borrower is essentially a
guarantor for the lender. Hence, there are number of education loan criteria for the co-borrower as well.
-The co-borrower must be a citizen of India,
especially if the student is opting for abroad studies.
-The co-borrower should be the parent, sibling,
legal guardian, or any relative of the student.
-The co-borrower should hold an active bank
account in any bank operating in India with cheque facilities.
-The co-borrower has to agree to be the primary
debtor.
Courses covered in
an education loan-
Education is seemingly endless in
this day and age. In fact, there are also courses available to get a degree in
education itself. Hence, along with checking if you fit the education loan
criteria, you should also check whether the education loan fits your criteria.
This means you should check if your education loan applies to the course you
wish to pursue as well as the college you want to visit.
Not only will it save you from a bad situation, it will save the amount of effort you can otherwise put towards a lender that does offer what you need.
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