At one point of time in any student’s life, they might have felt that they should pay up for their education now. But can they do that? How and when can it be done? All these questions get them confused and they often drop the idea of trying to help their parents with their education fees. This time let’s not make lack of knowledge about the topic an issue, through the guide below one, can know what are the things that they should do and expect while signing up for student loans.
What makes an individual eligible for these loans?
Student loans are offered to individuals who are meritorious and deserving so that they may continue to study and not think about bringing a break to it just because they can’t finance it. Through these loans, students got help to focus on their career but are these loans for everyone? Banks have set criteria for the applicants which they should meet before they want to sign up for student loans.
Factors that are taken into account
When a bank receives the application for a student loan, these are the factors they would take into consideration.
- The academic background of the student and what they have qualified and achieved until now. Their marks and credits are also checked.
- The other thing is the course, whether the course the student is seeking a loan for is worth studying or not. And will the student get a nice placement through that course to pay back the loan?
- The University that the student will be studying in, whether it is reputable or not.
- They also see whether or not the student will offer collateral on the loan taken.
The last thing that the banks would want to check is that are there any co-borrowers or guarantors of the loans that will be taken. The job profile of the third party would also be taken into consideration.
Which are the courses eligible for a loan
The banks offer education loans to the students for almost all the courses, the only demand being that the college should be of a good reputation and the placements that are offered are decent. These are the courses that a student can look forward to while wanting an education loan.
- Undergraduate degree and diplomas
- Postgraduate degrees and any diploma or special courses.
- Doctoral programs and PhD.
Along with these courses, the bank also finances for specialized courses but not all the banks would extend finances for these courses. As a student one can do their research and find a bank which will offer them a loan especially when there is a job prospect. Below are some of these special or diploma courses which are eligible to be chosen.
- Computer certificate course
- Certificate courses for ITI
- Data entry operator course
- Engineering diploma
- Agri diploma
- Veterinary diploma
- Nursing/ Teacher Training courses, B.Ed
- Any certificate course or job oriented diploma.
Banks also take the institutions that a student will be studying in, into consideration. They will not offer loans for any college or course without giving it a look. The bank needs to be assured that the degree or course that the student is applying for has great placement opportunities. Most of the banks already have a pre-approved list of colleges. Along with this list, the bank also has a list of blacklisted colleges through which they will reject the application if it is mentioned in the form.
What are all the documents required for educational loans?
For all those students who will apply for colleges in the country, they will need the following documents.
- Passport size photographs
- Duly filled form
- All the Mark sheets and certificates acquired till graduation level.
- Signature proof
- KYC documents which will have the age and address proof
- Income proof of the guardians or parents
- Immovable property, FDs
There will be different documents needed for all the students who want to study abroad.
Quality Education has been the dream of every student and individual and they often try to go to that extra mile to achieve that. The cost of education nowadays has been rising unexpectedly and in these times opting for education loans seems to be the single most option for all of them. Almost all the banks offer this type of help for all the students who want to go that extra mile.
How to apply
One just has to review all the banks and their requirements for a loan and choose the one that suits them the most. After selecting the bank an individual can either go to the bank or apply for the education loan online. After the loan is finalized, the bank will start with their process starting by collecting your documents. The bank will then go through all the details and finalize your loan and notify the person accordingly.
How does one payback
Student Education loan is an extremely reasonable way of investing in education. To repay the student loan there are three factors to note down.
- Student loans management
- Education loan calculations
- Education loan management
One has to focus on how many EMI’s they can afford for the repayment.
After knowing the total amount of time one has to pay the EMI’s accordingly, the students opting for loans can also pay a lump sum amount of money in between those EMI’s if they are able to. This way if possible the students have a chance to pay the loan before time and get over with it.
The Bottom line
Services like Education loans are offered to promote the opportunity for students to study further. This helps to enhance the growth of the citizens and the place. Such types of loans are investments that one makes for their future so it is necessary that an individual knows everything about it. Detailed research by keeping all the external and internal factors in mind will help with the decision making easy.