What are the Parameters for Education Loan?
A decent education is crucial to any person, and students go above and beyond to get it. However, school expenses have recently risen, and taking out eduloan services is the greatest solution. Students can apply for an education loan to get the funding they need to accomplish their studies. Many banks in India provide student loans at economical pricing to help educate the next generation of entrepreneurs and innovators.
Here are the key parameters you need to understand before applying for student loans!
Types of Education Loans
Education loan services are of various types. Below are the most prevalent categories—
- Loan for Domestic Education
Students can apply for this eduloan service if they wish to pursue their education in India. The loan will be issued only if the candidate is enrolled in an Indian academic institution and fits all other borrower criteria.
- International Education Loan
These loans assist students in realizing their dream of attending a foreign college to pursue their chosen course of study. Students who want to study abroad can apply for a loan that will pay for their airfare, lodging, and tuition as long as they meet the requirements.
- Graduate Student Loans
This education loan service is offered to help students with their educational costs so they can finish their undergraduate degrees. Typically, an undergraduate degree is a 3- to 4-year program with various specializations. An undergraduate degree makes it easier for people to find quality employment and start making money.
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Postgraduate Student Loans
These loans enable students to complete their 2-year post-graduate degrees and step ahead into the stream of interest.
Qualifying Criteria for Educational Loans
To be eligible to apply for a student loan at their preferred financial institution or bank, students must be aware of the prerequisites for student loans and meet them. Various banks have diverse requirements for eligibility for student loans. However, there are a few common elements that all financial institutions consider, such as—
- The applicant must be an Indian resident.
- If the borrower is under 18, their parents must take out the loan on their behalf.
- The applicant needs to have an outstanding academic history.
- The applicant must have received admission to a respectable college, university, or institution abroad.
- The applicant’s chosen program must be authentic, as banks prefer employment-oriented courses.
- Underwriting norms are the guidelines established by lenders to ensure that only risk-free loans are made available. They are also significant since they are used to figuring out the amount company is willing to loan and at what interest rate, as well as whether or not to offer a person a student loan for an overseas course of study.
Documents Required for Student Loan
Some general requirements are followed in all cases, such as disclosing certain documents with your loan application form. In particular, the documents comprise—
- A voter ID card, passport, driver’s license, or PAN are acceptable forms of identification.
- Proof of address or place of residence
- Income Evidence
- Authentic Indian Passport
- Academic Standing: 10th and 12th grades
- Semester-wise results for graduation (if required)
- GMAT, GRE, TOEFL, and IELTS scores (if applicable)
- Offer or admission letter from the institution serving as proof of enrollment. When studying abroad, a conditional admission letter is taken into account.
- Statement of Study Costs and Expense Schedule
- Two photos in passport size and a duty-filled signed application
- The loan account statement for exiting loans
Stamp duty for education loan
Any document used for legal purposes must be executed on a stamp paper to be legitimate, even if notarization is not required. Stamp papers are, therefore, a requirement for money-borrowing transactions. The fees paid on such agreements are called stamp duty. In the case of student loans, education loan agreement stamp duty is the fees charged on an agreement between the lender and the borrower.
Education loan stamp duty varies depending on the institute type, loan amount, tenure, and interest rate!
Wrapping Up
Financial aid can help you offset your education expenses. However, with the variety of loans available, documentation requirements, interest rates, and procedures, one can easily become vulnerable to fraud and risks. At Eduloans, we assist you in winning the battle by helping you obtain the optimum financial resources at the right time.
Register with our platform, and we’ll help you monetize your dreams in no time!