For several years now, the cost of higher education has been steadily rising, both on a national and international level. Today, the cost to attend a reputed national institute could cost you several lakhs of rupees, just for the tuition alone. These costs are much higher with international colleges as you also have to account for visa costs, accommodation fees and much more.
Naturally, not many can afford such high fees out of pocket, which is why it is quite common for students to avail financial assistance through an education loan. Thanks to new-age fintech provisions, these offerings are relatively easy to avail of as many lenders have relaxed education loan eligibility requirements.
For more insight on the general education loan eligibility criteria and the documents required to process this loan, take a look at these pointers.
Education loan eligibility criteria
The traditional education loan is offered to students looking for funding. As a result, the criteria is very different and has much to do with the student’s academic background. It generally differs from lender to lender, but here is a list of the general criteria to be aware of.
- The applicant must be a residing citizen of India.
- The applicant must be over the age of 18 to avail of the loan. Applicants that don’t meet the age requirement will need their parents to apply for the loan.
- One must have a stellar academic background.
- The applicant must have secured admission to the university/college in question.
- The applicant must choose a technical or professional course, as lenders prefer job-oriented courses.
These are the basic education loan eligibility criteria and the student will have to furnish the documentation to prove this.
Education loan documents required
While the eligibility criteria may differ, there are standard requirements when it comes to documentation. Most lenders will need the following documents to process a loan application.
- ID proof
- Driving License
- Voter ID card
- Proof of address
- A recent copy of utility bills
- Driving License
- Aadhaar Card
- Academic records: STD 10 and STD 12 result
- Graduation result: Semester-wise (if applicable)
- Entrance exam result
- Proof of admission
- Offer Letter or Admission Letter
- Conditional admission, in the case of overseas institutes
- Statement of cost of study
- Schedule of expense
In addition to this, any co-applicants or guarantors involved will have to submit a list of documents as well. These will vary with the lender but will include income documentation based on the employment type.
Besides the traditional offering, lenders are now offering specialised provisions such as the education loan, and it makes the entire process a lot simpler. Unlike the traditional education loan for higher studies, this secured loan gives you access to the entire sanction upon approval and allows you to use it freely to fund any and all costs.
What’s more, the education loan rates are not that much different from the traditional loan and some lenders may even offer favourable terms, based on your financial profile. To know exactly what’s needed to qualify for such a provision and the documents you require to prove education loan eligibility, read on.
Education loan on property eligibility criteria and documents required
When it comes to an study loan on property, the process is a tad simpler and quicker, in most cases. Depending on the lender, you may only be required to submit minimal documentation and meet basic criteria. Here are the general requirements for an education loan on property.
- Salaried applicants must be between the ages of 33 and 58 years
- Self-employed applicants must be between the ages of 25 and 70 years
- The applicant must be a citizen of India and residing in India.
- Salaried applicants must maintain employment at a reputed organisation in the formal sector
- Self-employed applicants must have a stable business and source of income
- ID proof
- Address proof
- Property documents
- Financial documents
In addition to these two options to avail funding, students and parents can also scout for specialised education loan schemes. These are designed to offer benefits to those from various walks of life and have reservations to make qualifying easy. Some lenders may even offer promotional education loan schemes, based on merit, and it is wise to explore all options before you choose one. From the three, your best option may be to leverage the equity on a self-owned property and avail funding through an education loan on property. The processes involved are simpler, you enjoy a greater deal of flexibility with the sanction and the loan rates are competitive as well.
You can also choose an education loan on property offered by Bajaj Finance Limited that comes with easy to meet eligibility criteria and an affordable rate of interest. This hassle-free loan against property provides high-value credit to fund your higher education with ease.
Also Read : Important Eligibility Criteria You Should Know Before Applying for a Housing Loan