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What is the Eligibility for Getting a Student Loan in India?

FAQ107 views

Highlights

  • Looking for an education loan but thinking whether you can get it or not?
  • Reading the education loan eligibility criteria can help you!

Your dream to pursue higher education in India or abroad comes with a price. Often the dreams of students to pursue education are dashed with high tuition fees and on living costs. And the scholarship is for those students whose academic results are good so what for the rest of the students? It is here that public and private banks come along with other financial institutions to provide education loans to students to pursue their dream of studying by giving them financial assistance. However, there is an eligibility criterion that has been laid and it is very important that students meet them to be eligible for the education loan. Read the post and know about it before applying for a student loan.

General Eligibility

You need to understand the eligibility guidelines to qualify for the loan and get the required money from a bank or a non-banking financial company (NBFC). The eligibility criteria for student loans vary from bank to bank. However, some of the common factors that are taken into account are as follows.

  • The student should be a citizen of India.
  • You should be a minimum of 18 years else the parents will have to take a loan for your studies.
  • Your academic background must be impressive.
  • You need to secure admission to a recognized university, institution or college.
  • The desired course which you apply for must be a technical or professional one, as banks give preference to job-oriented courses only.
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Documents Required

While the formalities vary for different banks while applying for an Education Loan, however, there are a set of formalities that are identical across the board, such as documents that you would require to submit along with your Loan Application Form. The documents primarily include the following. However, documentation can vary from one lender to another.

For Student-applicants:

Proof of Identity

  • PAN
  • Passport
  • Driver’s License
  • Voter ID card

Proof of Address

  • Telephone Bill
  • Electricity Bill/Water Bill
  • Piped Gas Bill
  • copy of Passport
  • Driving License
  • Aadhaar Card
  • Passport

Academic Records

  • 10 + 12th Result
  • Graduation Result: Semester-wise
  • Entrance Exam Result

Proof of admission

  • Offer Letter or Admission Letter
  • Schedule of expenses
  • 2 passport-size photographs

For Co-applicants:

  • Proof of Identity: PAN, Passport, Driver’s License, Voter ID card
  • Proof of Residence: A copy of the Telephone Bill, Electricity Bill, Water Bill, Piped Gas Bill or Passport, Driving License, Aadhaar Card
  • 2 passport-size photographs
  • If any previous loan from the lender, then loan account statement for last 1 year
  • Salary Slip or Certificate
  • Form 16
  • Last 6 months Bank statements

Eligible Courses for a Student Loan in India

You can pursue the following courses in India or abroad with the student loan that you can borrow from the bank or NBFC. Have a look at them.

  • Post-Graduation Courses: Masters and Ph.D. from known institutions.
  • Professional Courses such as Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management and Computer Sciences.
  • Other courses such as CA, ICWA, CS, and CFA.
  • Masters and Diploma Management Programs.
  • Degree or Diploma courses conducted by colleges and universities
  • Regular Degree or Diploma courses are included in this, such as aeronautical, pilot training, shipping, nursing, etc.
  • Post-graduation courses such as MCA, MBA, MS and other courses such as CIMA – London, CPA in USA, CFA, CISA, etc.

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