Education loan is the best way to pursue higher education in India and abroad without compromising on your savings or assets. Here the lump sum amount borrowed from the lender is repaid in easy EMI after six months of employment or course completion.
Eligibility for Education Loan
The eligibility for education loan differs from lender to lender and the criteria are set for both the applicant and co-applicant. However, the basic criteria are as follows:
- You should be an Indian citizen
- You should fall in the age bracket defined by the respective bank
- You need to apply in a recognized college/institution
- A good academic record helps with quick loan approval
- You need to apply for the education loan with a co-applicant who has a regular source of income
Education Loan Eligibility Calculator
Education loan eligibility calculator helps you get the approximation of the loan amount you can borrow from the bank or financial institution depending on your age and the co-applicant’s details.
This clearly states the eligibility criteria required for quick and easy loan approval. You can also find out how much EMI is to be paid at a given rate of interest and the tenure.
Education loan without collateral
As per the guidelines by RBI, an education loan of up to Rs. 4 lacs can be availed without submission of collateral but when the loan amount exceeds the limit, you are required to submit collateral and a third party guarantee is also required which, in most cases, is given by the parents of the student.
Now let us talk about the education loan eligibility criteria set by some popular banks-
Eligibility for Education Loan in Indian Bank
Indian Bank offers education loan for pursuing courses in India and abroad
- Student should be citizen of India.
- And he should have secured admission to professional or technical courses in India or abroad through an Entrance test or a merit based selection process.
Eligibility for Education Loan in HDFC Bank
HDFC Bank offers education loan of up to Rs. 7.5 Lakh without any collateral. It even provides wider collateral options such as Residential Property, HDFC Bank Fixed Deposit, LIC, NSC or a KVP policy. The maximum loan tenure is of 15 years post moratorium period.
The eligibility criteria includes-
- You need to be a Indian resident
- You should be aged between 16-35 years.
- If you are taking a loan of more than Rs. 7.5 Lakh, a collateral security will be required.
- Co-applicant: A co-applicant is mandatory for all full time programs. Co-applicant could be Parent/ Guardian or Spouse (if married) / Parent-in-law (if married).
Eligibility for Education Loan in State Bank of India
- Should be an Indian national
- Should have secured admission to professional/Technical courses through Entrance test/selection process.
- Should have secured admission at reputed foreign university/Institution.
Eligibility criteria (For Studies in India)
- Graduation/post-graduation/PhD & professional/Diploma/computer certificate courses of reputed institutions.
Eligibility criteria (For Studies abroad)
- Graduation: for job oriented professional/ Technical courses by reputed universities,
- Post-graduation: MCA, MBA, MS etc.
Eligibility for Education Loan in ICICI
ICICI bank offers education loan for a large number of courses for graduate/post graduate degree and PG diplomas conducted by colleges/universities recognized by UGC/ Govt. / AICTE/ AIBMS/ ICMR etc. Also, undergraduate, graduate and PG courses abroad are approved.
The student should be an Indian National and must have secured admission to professional/technical/Graduation/Post Graduation courses in India or Abroad through Entrance Test/Merit Based Selection process.
Sanction of loan will be considered on the basis of academic record, net worth & income of family and scope for securing good/gainful employment. The student will have to submit all required documentary evidences including receipts, estimates etc. & progress/performance report to the Bank regularly till completion of the course.
In case of studies abroad, student should submit the Unique Identification Number (UIN) / copy of Identity Card to the branch.
The student/applicant should not be availing/will not avail any education loan when the loan is running. Necessary Affidavit / Undertaking to this effect to be obtained.