Whether you’re a first-time student or a veteran of higher education, getting the right lender for your student loans can be difficult. However, with careful research and discipline, it’s possible to manage this debt successfully. But, here are five ways you need to know to get an education loan:
1. The Essential Eligibility Criteria
The first step in getting the much-needed student loan is to be a citizen of India.
The next thing that you need to do is be a Bonafide student at any recognized university in India like IITs, IIMs etc. You will also have to provide proof like your degrees, marks scored and transcripts along with your application form. The bank will require all the details of your education history. To successfully land on an education loan, remember that you need to have good scores and a competitive educational history.
2. The Subject and Institute You Choose are Approved By AICTE
While applying for a personal loan for higher studies, ensure that AICTE recognizes the course and the institute you choose. If your course is not listed in the AICTE list and there are limited job prospects, banks might not sanction your loan.
3. Make Sure That Your Credit Score Is Above 700
To get an education loan, you must have a good credit score because it directly affects how much money banks can lend you. Banks look at several factors when deciding whether or not they will give out loans, including how much money you make each month? Whether or not there are any unpaid debts on your record and if you will be able to pay back the loan after your education.
4. Gather Required Documents
To get a student loan, you must provide several documents. The list of documents required are:
- Passport size photo
- Proof of citizenship or legal permanent residency (can be a copy of your driver’s license)
- College transcripts
- Course acceptance letter
- Fee structure
- Additional study expenses list and costs etc.
5. Do Not Postpone Submitting Documentation
While applying for a loan, you will need to submit your original documents to secure an education loan. While doing so, make sure you have your ITRs, salary statements and other documents in place. Also, do not delay the submission of documents regardless of how close the university deadline is. It’s better if you submit them before they reach their due date so that they can be processed quickly by banks and other financial institutions involved in processing your application.
Students need to know that education loan in India is now easily available through any nationalized bank. With this, you can apply for the same and get it approved quickly. You need to follow some basic guidelines while applying for such loans so that they are not denied by banks.