Education loan
Education loan eligibility criteria vary from lender to lender, but some common factors that most lenders consider include:
- Age: Most lenders require the applicant to be at least 18 years old and not more than 35 years old to be eligible for an education loan.
- Citizenship: Only Indian citizens are eligible for education loans in India. Non-resident Indians (NRIs) may be eligible for education loans, but the terms and conditions may differ.
- Academic record: Lenders usually require the applicant to have a good academic record to be eligible for an education loan. This includes meeting certain minimum marks or grades in the qualifying examination.
- Admission to a recognized institution: The applicant must have secured admission to a recognized institution in India or abroad to be eligible for an education loan.
- Co-applicant’s creditworthiness: In case the loan amount is significant, some lenders may require a co-applicant, such as a parent or guardian, to be a co-borrower on the loan. The co-applicant’s creditworthiness and financial standing are taken into account when determining eligibility.
- Income: While income is not always a strict eligibility criteria, lenders may consider the applicant’s income when determining the loan amount and interest rate. This is because the borrower’s income level affects their ability to repay the loan.
It’s essential to check the specific eligibility criteria of the lender you are interested in before applying for an education loan. Meeting the eligibility criteria is just the first step in securing an education loan, and borrowers must also fulfill other requirements, such as submitting necessary documents and meeting the lender’s underwriting criteria, to get the loan sanctioned.
