An overview of education loan eligibility criteria in India

1. An overview of education loan eligibility criteria in India

2. Are you dreaming of entering one of the reputed universities of the world, fairly confident of your calibre to study there? If yes then the only thing that may be stopping you is financial problems. This is when an education loan saves the day. An education loan helps the student who has no funds to study at his or her chosen university or college. But to get an education loan, the student has to fulfil the education loan eligibility criteria. In this article, we will help a student like you understand the eligibility criteria and document requirements to get an education loan.

3. To get an education loan, the student and the co-borrower would have to fulfil the following eligibility criteria:

4. Student eligibility criteria • The student must: • Be a citizen of India. • Be 18 years of age or more. If the student is not above 18 years old then the parents or the guardian would have to apply for an education loan as a co-borrower with the student. • Maintain a good academic record. • Have an admission proof for a college approved by the lender. (This criterion is debatable). • Should have applied for a course that has a high scope of job opportunities.

5. If the student has applied for a full-time course but doesn't have a source of income yet then he or she needs a co-borrower to satisfy the education loan eligibility criteria. A co-borrower in most cases is either a parent or a guardian. But a spouse can be a co-borrower as well. • The co-borrower must: • Be a citizen of India. • Have a reliable source of income. • Have a good credit score and credit history. • Be either a parent or a guardian (Spouses of married people are considered as co-borrowers as well) • Once the student fulfills all the eligibility criteria then comes the requirement for the student and his or her co-borrower to submit the necessary documents to prove their eligibility for an education loan. Co-borrower eligibility criteria

6. Student documents required • The student documents usually required are: • A filled education loan application form. • 2 passport-sized photographs. • Identity proof (AADHAR card/ PAN card/ Passport/ Driver’s license) • Residential proof (Electricity bill/ Gas bill/ Water supply bill) • Academic mark-sheets and certificates • Competitive exam mark-sheets (GRE/TOEFL/ GMAT) • Admission proof of the university approved by the lender. (This point is not a strict requirement every time) • A log of potential expenses that will be incurred while studying the course

8. Co-borrower documents required • The co-borrower’s documents generally required are: • 2 passport-sized photographs. • Identity proof (AADHAR card/ PAN card/ Passport/Driver’s license) • Residential proof (Electricity bill/ Gas bill/ Water supply bill/ Property tax bill) • The details of the different loans held by the co-borrower at the time of submission of the education loan application form.

9. If the co-borrower is a salaried employee then he or she needs to submit these documents additionally: • Salary slips of last 3 months. • The co-borrower’s income tax returns. • The co-borrower’s salary account statements of the last 6 months. • If the co-borrower is self-employed then he or she needs to submit these documents additionally: • Qualification certificate (B.E certificate if the co-borrower is an engineer/ Graduation certificate if the co-borrower is a graduate). • Address proof of the co-borrower’s business office. • Income tax returns of the co-borrower. • Bank account statement of the co-borrower in the last 6 months. • So, this was an overview of education loan eligibility criteria for a student to get a loan to study at his or her choice of educational institution. Now a student like you can fulfil his dream of getting a degree or a diploma and set forth on the path towards a successful professional career using an education loan. We wish you all the best!

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