A few tips to improve your student loan eligibility

The educational fees have increased tremendously. Thus, there are a lot of students who are unable to obtain education from an institution of their choice. However, thanks to the education loans given out by banks and NBFCs (non-banking financial companies) students can breathe with a sigh of relief. The financial institutions provide these students loans at much lower interest rates when compared with the interest rates given out by traditional financiers and loan sharks. All they need to do, in order to make use of these loans is fulfill the required student loan eligibility. There are also a number of discounts on interest rates provided to meritorious students and women.

An education loan takes care of all of your study-related expenses. The different expenses covered by the education loans range from cost of college fees, tuition fees, living expenses, travel expenses, etc. There are a number of study courses covered by the education loans in the fields of science, arts, commerce, mass media, etc.  Thus, students can choose and opt for the course which they want. However, there are a lot of students who do not meet the required eligibility criteria set by financial institutions. For those of us, this article will highlight a few tips to improve one’s student loan eligibility.

These tips are as follows:

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  • Co-borrower: The first criterion to avail an education loan in India is your nationality. You need to be an Indian citizen in the age-group of 18 to 35 years. This criterion is something which cannot be changed or improved. However, the criterion of co-borrower can be improved. You need an earning member of the Indian society who must be willing to co-sign the loan amount. This co-borrower can be any of your family members, siblings, etc. He or she shall be the primary debtor. Thus, you need to make sure that they have a good credit history and score. Credit history is the financial report of one’s financial activities.
  • Documents: Make sure that you have all the required documents with you for quick sanctioning. The different documents that you need to fulfill your education loan eligibility are your educational credentials, co-borrowers credit history, address proof and identity proof.
  • Educational background: Make sure that you have cleared all the pre-requisite examinations to enroll for the course. Also, the financial institutions scrutinize your educational background and credentials. Thus, make sure that you have scored well in all of your previous and current examinations.
  • Collateral: The collateral amount required to make use of an education loan is the quantum of the loan amount you want to borrow and the primary lenders credit history. This collateral can be any of your residential properties, non-agricultural land, fixed deposit, life insurance policy, etc. Thus, make sure that you have all the required collateral to procure an education loan. The marginal amount that you pay also decides your student loan eligibility. Thus, opt for higher marginal amount for easy loan processing.

Hope this tips will help you improve your education loan eligibility. Good luck and all the best.

Things to take care while taking overseas Study loan

overseas Study loan , The General tendency of an applicant is to hit the nearest branch of the first lender and applu for a loan and head home. But, why are you in so hurry? Insted find out what other lenders are offerinfg you in terms of principal amount, interest rates, tution fee cover

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How education loan EMI calculator helps you enjoy your study loan

Education loan EMI calculator they were created to make the long, hard and complex calculations super easy and wuick. If not these simple to use number cruncher, we wold be spending hours doing complicated calculations daily. When you take a loan to fund your studies, these calculators come in handy.

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Explained: Why education loan eligibility is of great importance

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.

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  • 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.