All you need to know about education loan eligibility

Students realize that pursuing further education is very important in today’s world. Every one of us has dreams of making it in a reputed company some day or the other. In order to get there at a good job position, one obviously has to have the skills required to help business grow. The use of these skills will be called upon once the individual gets at that position. 

But to get there, the individual needs to have the academic qualification to be considered for the job.

Students always look to pursue a course of their choice at a good university. This obviously requires a lot of planning since arranging the finances is no easy job. But then again, it is not impossible too. Taking an education loan is a great way to finance your further education.

The first step of getting an education loan is to check about their education loan eligibility. Each financial institution has its own rules and regulations based on which it sets its eligibility criteria. But there are some common criteria that the student should be eligible for while applying for an education loan.

Here are the education loan eligibility criteria:

-The applicant should be an Indian citizen.

-The applicant should have completed 18 years of age.

-Having a co-applicant is mandatory.

Students need to keep these education loan eligibility criteria in mind before they apply for an education loan. Now that this clear, the next step in the procedure is the usual where you have to fill out application forms and submit the required documents that the financial institutions ask you to provide.

For students wondering whether they could increase their education loan eligibility, they definitely can. Here are the two most effective ways to do that:

A good credit score-

Those having good credit scores get better loan plans as compared to those with below average scores. This is because financial institutions more trust in borrowers with good credit scores to repay the loan amount.

Applicants with good credit scores are eligible to get bigger loan amounts. Not just this, they also get these loan amounts at lower interest rates! This is the reason one should always take care of their credit scores, as it helps build their education loan eligibility. The borrower can even build their credit score by paying off the loan on time.

Willing to provide collateral-

Applicants always look to take an education loan where they would not have to provide any collateral. Most of the financial institutions agree to provide education loans without asking for any collateral from the applicants. Banks would however require collateral if the loan amount exceeds a certain limit.

But applicants should look to provide collateral to the financial institutions if they want to get better loan plans. Once the lenders are provided with collateral as security, they agree to give bigger loan amounts at lower interest rates. This increases the education loan eligibility of the applicant.

We hope this article has helped you, all the best!