Everything you must know about student loan eligibility

1. Everything you must know about student loan eligibility BY AUXILO

2. Student forums discussing education loans focus heavily on interest rates, tax benefits, tenures, etc. These are all important factors, no doubt – one needs to keep in mind these factors when considering an education loan. However, the one factor that gets overlooked in bargain is student loan eligibility. It’s an extremely important element aspirants need to look into before applying for an education loan.

3. What is student loan eligibility? Student loan eligibility works on two levels. The first being whether or not you are eligible for the loan or not. To be eligible, you need to an Indian citizen, above the age of 18. Some lenders will require that you have confirmed admission from the university of your choice. You will also have to have a guarantor who is an Indian citizen above 18 years of age. They will need to have a steady income and bank account that allows them to issue cheques.

4. Can I check my eligibility? Yes, it’s very simple! All you have to do is use an online education loan eligibility calculator. It will give you a rough estimation of your eligibility amount in seconds. You can also contact your lender and discuss your eligibility before applying. Today, most lenders will send a representative to your doorstep and you can discuss this aspect with them before applying.

5. What happens if I apply without checking my eligibility? If you apply without knowing your eligibility, you might apply for a loan amount that’s above your eligibility and beyond your financial means. In this case, your loan application might get rejected. In the process, you could also lose out on your processing fee which could as much as 1 or 2 percent of the loan amount you’ve applied for. This a double whammy that is best avoided by checking your eligibility before applying.

6. What is my eligibility amount is very less? It happens; students are offered loans that are not enough to cover all their expenses. In this case, you can pledge some sort of collateral to unlock higher loan amounts. Applying for scholarships is also a good idea as you get a good amount of funding from the college or trust allowing you to cover your expenses. Therefore, if you are planning on applying for an education loan, remember to check your eligibility before signing along the dotted line of the application form. Hope this article has been helpful, good luck and all the best!

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