With the rise in the cost of education every year, it is increasingly becoming tough for students to pursue higher education in India. Students, whose parental income is not up to the mark, are facing this challenge in the country. Many bank and financial organisations have come to the rescue of these students by offering education loans. Meritorious students, who have excellent educational qualification, are offered financial help to study in renowned institutes in India or abroad.
Most of the banks in India offer such education loans to deserving candidates at low-interest rate with flexible terms and conditions.
Because these loans are offered to brilliant students who are unable to meet the expenses of their higher education, banks are very particular about the basic education loan eligibility of the students. The eligibility of the applicants are assessed by the banks on the basis of their academic performance. However, students need to know how to check their eligibility criteria to get their education loan approved. Here is a checklist for them.
Basic eligibility criteria
- Candidates who are applying for an education loan must be a resident of India.
- They must have confirmed admission to some recognised educational institutes in India or abroad.
- The age of the candidate must fall within the bracket of 18 to 35 years during loan application.
- While applying for an education loan, they must be undergoing a graduate/postgraduate degree or a PG diploma.
- The applicant should have secured admission in a college or university affiliated by UGC/AICTE/Govt. etc.
- Students pursuing full-time courses need to have a co-applicant who can be either parent/guardian or spouse/parent-in-law (in case of married candidates).
How to improve students’ eligibility
The overall academic excellence of students, their future course of education and status of current admission are some of the basic parameters that banks evaluate before sanctioning an education loan. With some of the following crucial factors, students can improve their eligibility criteria to get their education loan approved.
- Scoring high grades/ranking in the qualifying exams
- Displaying good academic record
- Getting admission in a reputed/top-tier institute or university
- Strong financial background of parents/guardians/co-borrower
- Displaying good prospects for future employment/income generation
How to check eligibility criteria
Before applying for an education loan from any of the top banks in India, students can check their eligibility criteria in advance. Candidates can check on different websites about many appealing offers from the banks.
Education loan eligibility calculator
Education loan eligibility calculator will to a great extent help students to get the approximation of the loan amount they can borrow from the bank or financial institution depending on their age and the co-applicants details. This will also make it clear about the eligibility criteria required for quick and easy loan approval.
Courses eligible for educational loans
Students in India can avail loans for the following courses.
- Undergraduate degrees/diplomas and special courses.
- Postgraduate degrees/diplomas and special courses.
- PhDs and Doctoral Programmes.
Apart from this, banks also offer loans for specialised courses, training, and diplomas. Not all banks will extend finance for these courses, but an applicant can do research and find a bank that will offer them a loan especially if there is a prospect of a job. Some of the courses include:
- Computer certificate course
- Engineering diploma
- Certificate courses from ITI
- Data entry operator course
- Nursing/Teacher Training certificate courses and B.Ed
- Agri diploma
- Veterinary diploma
- Any job-oriented diploma or certificate course
- Degree or diplomas for aeronautics, pilot training, shipping held by recognized regulatory bodies for the purpose of employment in India or abroad
- Vocational courses run by a Government organization or department
- Courses run by State Skill Missions, State Skill Corporations, or National Skill Development Corporation
Banks will also consider the institution you have selected to pursue your studies. They will not lend money to just any course and any university. Some of the universities that are preferred for studies in India are listed below.
- Universities or colleges recognized by UGC, Govt., AICTE, AIBMS, IMCR, etc.
- Approved polytechnic institutions
- Reputed foreign schools/universities in India