If you have applied for a student loan to finance a course at a university outside India, you must know the length of the application process and its various stages. In this article, we’ll focus on the different eligibility criteria for students to get an education loan in India for studies abroad. These criteria will include the essential eligibility criteria for students and academic and financial eligibility criteria.
Before going ahead with their application, a student needs to fulfil certain basic eligibility criteria:
- Residence: The student must be a resident of India.
- Age: The student must be between 18 and 35 years of age while applying for the student loan.
- Confirmed admission: The student must already have confirmed their admission to a recognized university in India.
- Recognized university: For students applying in India, their university must be recognized by the University Grants Commission (UGC) or the All India Council for Technical Education (AICTE).
- Co-applicant: If the student is pursuing a full-time course, they need to have a co-applicant who can be their parent, guardian, spouse or parent-in-law (in the case of married candidates).
The following are the academic eligibility criteria that a bank or a financial institution considers before approving a student loan in India:
- Academic record: A student’s academic record is assessed to qualify for a student loan. A good score in the 10th and 12th standard examinations and a good grade point average (GPA) in the student’s undergraduate course reflects an excellent academic record, which makes it easier for a student to avail themselves of a student loan.
- The course that the student wishes to pursue: The bank also considers the course that the student wishes to pursue, its duration, and its annual fees.
- The university where the student wishes to apply: Banks also consider the university and its location. Students can avail themselves of a student loan with IDFC FIRST Bank for higher studies in the USA, UK, Canada, Australia, Germany, New Zealand, Singapore, and others. Reach an IDFC FIRST Bank representative to know the full list of countries!
Finally, the following financial eligibility criteria are considered by banks before approving and disbursing a student loan to an individual:
- The ability to pledge collateral: An education loan in India is a secured loan, which requires students to pledge collateral during the application. Hence, the student’s ability to pledge collateral is assessed closely before approving an education loan. Even after the collateral is pledged, its type and value are assessed.
- Guarantor or co-borrower: Most education loans require a student to have a guarantor. This is an acceptable third party who guarantees the payment of the loan. The bank thoroughly checks the guarantor’s background, reputation and professional post, and their ability to repay the loan in case the student cannot do so.
Before applying for an education loan, it is always advisable to consult an education loan EMI calculator. This helps you get a clearer idea of the repayment cycle of the loan before applying for it, besides helping you decide on the university for which you should opt.