Critical notes on fingertips to get the education loan approved
Quality education is a mandate for the successful life of the person. Knowing these aspects, parents keep struggling to helps their children provide quality education.
To keep up with the sky-high prices of higher education, parents plan for some long-term investments like mutual funds and unit-linked funds yet, they experience a financial deficit to address the educational needs of their children, and this is the juncture where loans for further education students come in.
These loans are turned to be a quick financial aid in addressing the educational needs of the students, especially when they wish o complete their higher education abroad.
Every student who is looking for a loan to complete their higher education should adhere to the education loan eligibility requirements of various banks.
Who can apply for the loan?
You will be eligible to apply for the education loan if you are a citizen of India with a desire to complete higher education despite your financial capability.
The loans for further education students are offered when parents or sibling or earning spouse stands as a co-applicant for the loan. The earning co-applicant should have the potential to repay the loan in case you fail to do so.
The lender calculates your student loan eligibility upon having the admission to the university in which you are pursuing your higher education either within the country or outside the country.
The loan amount you get to pursue your higher education varies from lender to lender. However, there is a cap on the loan amount that is granted through these banks.
A cap of 10lakh is levied on the loans for further education students for pursuing higher education with the country. If you are seeking investment to pursue higher education abroad,
you will get a maximum loan amount of 20 lakhs depending on the course you are going to continue. Choose the university wisely to make the best use of the amount you have received through an education loan.
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Though you as a parent stand as co-applicant for the education loans, the lenders ask you o submit collateral to get education loan eligibility. When the loans for further education students are below four lakhs, you are not required to pledge any collateral.
Any loan amount beyond this makes it mandatory to pledge collateral. This is asked to reduce the risk of educational loans sanctioned by banks.
Most of the students are worried about repayment of the loan while availing it. To keep the students away from the issues of loan repayment, the government of India has brought some customized repayment options for education loans.
All the students enjoy the holiday period regarding the repayment of the loan, the student that has availed the loan need not worry about the repayment of the loan during education. They should start repaying the loan either one year after completing the course or after six months of supplementing education.