Why Student Loan Eligibility is So Important for Study Abroad.

Higher education in a reputed international university is a dream for many students in India. The new country, the independence, and the exposure to various cultures is all very appealing to students. However, higher education has become incredibly expensive, both internationally and domestically. Student loans help fill the void between the amount required and the funds available. A student loan is used to pay for university costs, mainly abroad, and is paid off over a period of time with an extra fee called interest. Most student loans cover costs such as tuition, living expenses, books, etc. For those who want to study in a reputed university abroad for their bachelors, Masters, PhDs, or even vocational courses; student loans are like a gift sent directly from heaven.

Student loans are provided by both federal and private banks and private entities called non-banking financial companies (NBFCs). Most students prefer student loans that are provided by federal banks because of the lower interest rate, flexible repayment options, and convenience. However, non-banking financial companies (NBFCs) also offer lower interest rates depending on the Student Loan Eligibility. The student loan money that is borrowed from federal banks is sent directly to the university and the student loan money borrowed from private entities is either sent to the borrower or directly to the university, depending on the student’s needs.

What is student loan eligibility and why is it so important to study abroad?

As in the case of other loans like car loan or home loan, one needs to have student loan eligibility. Student loan eligibility is basically the criterion on which a student is judged on when taking a student loan. The criterion is as follows:

According to age- In India, there is a minimum age limit as to when you need to start that particular course, but there is no maximum age limit to complete it. In the case of Education Loan, students need to be from certain age brackets to have student loan eligibility. For example, to start an undergraduate course, one needs to be in the age bracket of 18-27, to start a post-graduate course, one needs to be in the age bracket of 21-35, etc. This ensures that the student is capable of paying off the student loan.

According to the course- Student loans are available for courses such as undergraduate degree/diploma, postgraduate degree/diploma, PhDs and doctoral programs, and certificate courses that are more than six months. Some banks also give student loans for some specialized courses like computer certificate course, engineering diploma, data entry operator course, etc.

According to the financial background- If the parents of the students have a strong financial background and can provide relevant financial information such as bank statements, proof of income, home ownership documents, etc., then the student has student loan eligibility.

The students who have the most knowledge about student loan eligibility, the documents required to acquire a student loan, and student loan interest rates are the students who get the best deals on student loans and are easily able to pay them off as well in the future. Education is very important in this day and age. You can’t get a well-paying job without proper and higher education, especially if you go abroad. Thus, student loan eligibility is very important. We hope this article helps you out with your future endeavors and we wish you the best of luck!

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