Essential requirements to apply for education loan in India
Some of the common ways of funding higher education would be from savings, borrowing from friends or relatives, selling of an asset or by selling a land. In case there is a failure in making a repayment it may lead to tiff in the family relations. Also, Raising funds through the private lenders involve high risk as they charge a high rate of interest and may acquire the property or collateral kept as mortgage. Thus, majority of people in India today opt taking education loans to fund their dream of pursuing higher education.
Education Loans in India not only provides a financial support to the students but also provide them a respectable option by making them independent enough to fund their own education. Thus, it dismisses the burden from their parents shoulders letting them take care of the other responsibilities.
There are many banks and private finance companies which provide education loan in India today. These private finance companies are called as NBFC’s (non-banking financial companies). Availing an education loan in India through these NBFC’s provides many benefits like easy and faster approvals, 100 percent loan amount coverage, no margin money and many more. These companies provide tailor made study loans to the students at a lower interest rate of 12.75 percent and have no upper limit on the loan amount. They provide doorstep service to the students and faster loan process by sanctioning the loan within 4 days. These companies cover all the expenses and charges required by the student which include the living expense, tuition fees, costs of books, computers and all the education related expenses in the loan amount.
However it is very important to keep a check of some essential requirements for availing and applying for an education loan in India which include the following:
The eligibility criteria for students:
- The student applying for the study loan must be an Indian citizen and of age 18 years and above.
- He or she must have a confirmed admission in the institute before the disbursement of the loan
- The student loan has to be cosigned by an earning co - borrower in India
Eligibility criteria for co –borrower:
- The co-borrower of the student must be an Indian citizen and could be a parent, sibling, legal guardian or relative.
- The co- borrower has to have a bank account in any bank in India
- The co-borrower would be the primary debtor
The documents required include:
- Student’s KYC documents and educational documents
- Student course and fee details
- The co-borrowers KYC and income documents
- Collateral documents
Collateral required:
The student has to keep a collateral security against the loan amount which could be a Residential property, fixed deposit, Life insurance, existing mortgage and non-agricultural land.
These companies charge nominal processing fee of 1 percent and offer a good moratorium period of six months after the course and three months after getting a job. So, student don’t have to worry about the repayment of the loan as they can repay either after the completion of their course or after getting a job so they do not have to stress about things and can also avail the various repayment options. Fulfill your aspirations without compromising on your dream of pursuing higher education with education loan in India.
