Reasons why you should maintain your student loan eligibility

The demand for obtaining good education is on the rise to succeed in life. However, the cost of procuring quality education is often more than one could contemplate. Therefore, there are many meritorious individuals who are unable to obtain an education in a field of their choice from a reputable institution. However, now they can make use of an education loan and give away with all of their financial worries. There are a lot of banks and NBFCs (non-banking financial companies) that have started providing these loans. The interest rates charged by these financial institutions are way lower than the ones given out by traditional financiers and loan sharks. But you must first fulfill the required student loan eligibility to make use of these loans.

An education loan covers all the expenses incurred by the students while pursuing higher education in the field of their choice. The various expenses covered by the education loans range from the cost of college fees, tuition fees, study material, living expenses, etc. Even the other sort of miscellaneous expenses are covered by these loans. By fulfilling the student loan eligibility given out by financial institutions, you can choose a course from numerous fields such as science, arts, commerce, mass media, journalism, etc. Thus, you have numerous options in front of you to choose the one which suits you the best.

The repayment of an education loan is done in the flexible form of EMIs (equated monthly installments). These installments are calculated on the basis of the principal amount borrowed, the repayment tenure chosen by you and the interest rates charged by the banks and NBFCs (non-banking financial companies). The financial institutions have also started providing EMI calculators on their websites; however, you need to have an internet connection and a laptop, computer or smartphone to make use of them.

If you opt for an education loan, you can finance your own education. Thus, now you don’t have to depend on your parent’s savings to fulfill your educational dreams. As, parents often give up their savings to secure their child’s education.  The student loan eligibility criteria given out by banks and NBFCs (non-banking financial companies) are here as follows:

• You need to be an Indian citizen in the age group of 18 years to 35 years (for most of the financial institutions). You need to have all the required documents with you- at the time of sanctioning.
• There must be an Indian citizen who must be willing to co-sign the loan amount and become an active co-borrower. He or she shall be the primary debtor and can be any of your family members such as relatives, siblings, etc.
• The collateral required for you to obtain an education loan is the quantum of the borrowed loan amount and the primary debtor’s credit history. This collateral can be any of your residential properties, non-agricultural land, life insurance policy, fixed deposits, etc.
• Your student loan eligibility also depends on other factors such as the co-borrowers credit history and income as well as your academic records, the course of choice, university, etc.