Several students are taking out education loans to pursue their higher studies. Almost every bank offers the student loan to worthy and deserving students who face financial constraints to fulfil their aspirations. These loans only help to boost the careers of the students.
But not everyone is eligible for an education loan. Banks and other financial institutions have specific criteria’s in place which you have to fulfil. Before getting into the details of the eligibility conditions, take into consideration some factors:
- The applicant’s academic background and qualifications are essential for the financial institutions
- The courses should be worthy enough and accredited. You stand a good chance of placement and job prospects
- The university, college, and school are also crucial for the banks
- An education loan is of two kinds – secured and unsecured. Banks do take collaterals which exclude the insurance papers. Based on the guarantee your interest rates lower
- Educational loans allow guarantors in the form of parents, guardians, or an acceptable third-party co-borrower. The lenders will, however, check the job profile and credibility of them as well
What courses are acceptable while taking the student loan?
Before you apply for student loan, you have to decide on the kind, of course, you want to pursue. They must be:
- Undergraduate degrees
- Postgraduate degrees
- PHDs and doctoral courses
Some banks also offer loans for specialised studies. If you research, you can find banks which provide loans for the following courses:
- Computer certificate
- Diploma in engineering
- Certificate courses in ITI
- Data entry operator course
- Ed or nursing course
- Agri diploma
- Veterinary diploma
- Degree on pilot training
- Any course related to your employment
- Government-run vocational courses
- State skill mission
Which institutions fall under educational loans?
Individual banks have exclusive tie-ups with the recognised universities, schools, or college. They do not lend a student loan for just any college or university. Different financial institutions have also blacklisted several colleges. To give you an idea which colleges you can opt for, following is the list:
- India: The preferred studies are –
- Universities recognised under UGC, Govt., AICTE, AIBMS, IMCR, etc.
- Polytechnic institutions
- Reputed international universities
- Recognised domestic schools
- International: Colleges who hold good track record in specific courses like CPA in the USA, CIMA in London, etc.
The education loan sector is in tremendous demand as more and more students want to study further. It only leads to the growth and development of the country.
All About Bank And Loans in India 