Education loan criteria

A good education is very important! In today’s world, it is a must-have in order to secure a good post in a reputed company. However, affording higher education has become increasingly strenuous. Fortunately, people can turn to banks or financial organizations for monetary support. These organizations provide extra funds for the applicants so that they are able to pursue their dreams and this article will tell you about the criteria you need to fulfill and the procedure you need to follow to get such a loan.

Basic education loan criteria - 

The candidate’s nationality should be Indian to start with. The age of the applicants should be between 18 to 35 in order to be eligible to apply for an education loan. The basic documents would be certificates of the academic results and any other kind of achievement. This is necessary as the education loan criteria also depends on the academic performance of the student. The applicant should be affiliated with a certified university in India or abroad, and should have the documents to prove it. It is mandatory for the applicant to be going through graduation, post-graduation or a PG diploma. Another important factor is that of a co-applicant. The applicant’s parent or guardian has to be the co-applicant in order for the loan to be approved. For a married applicant, their spouse or parent-in-law should be their co-applicant. 

Basic application process -

It is very important for the applicants to know about the education loan criteria as not being thorough with it could result in their application getting rejected. Every loan provider will need some basic documents for verification at the initial stage. At the next stage where the loan is approved, the banks or NBFCs’ decide the amount which is to be given to the applicant. Once you fill the online application form, a person from the bank will visit your home just for verification purposes. After they have checked all the documents and make sure all the information is accurate, the verification is successfully completed, after which the bank will then sanction the loan. The bank also checks the applicant’s academic performance, the course that is he/she is looking to pursue, etc. Based on all these factors the bank will then decide the amount that is to be given to the applicant. If the amount that has been fixed is lower than the amount that the applicant has applied for, the application will get rejected. Now the bank has to pay either its in-house employees or third party- whoever was handling this verification, with the processing fee of the applicant. So even if the application gets rejected, the applicant is not going to be getting the processing fees back. To avoid losing money this way, the applicant should make use of loan eligibility calculators to get a rough estimate of the amount they can expect to get sanctioned by the bank or NBFC.   
For applicants looking to pursue further higher studies, we hope this article has provided insight on the process of applying for an education loan. We wish you the very best for your future!

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How to get the best student loans for studying abroad

The decision to continue with further education is a bold one, and even bolder when you have decided to continue your studies abroad. It is very exciting on facing a new challenge, but one should make sure to sort out their funds in order to make this dream a reality. 

Educational loans help the students in achieving their academic dreams, but there is still a lot to know and research before going ahead and taking a loan. This article will shed light on information you need to the best loans for your needs.

There are many options that the student can choose from for when it comes to educational loans studying abroad, hence thorough research should be done on the different loan options. One major decision that the students have to make in order to get the best educational loan, is to choose between taking a loan from a bank or from a non-banking finance company (NBFC). 

Verification process-

1. Banks

Banks usually have a list of universities that they recognize for which they sanction the loans, but they may also be ready to give out loans if the course offered by the university gives the student good employment opportunities. Based on factors like the reputation of the university, the value of the course and the employment opportunities it generates, the bank then decides the terms and conditions of the sanction. 

2. NBFCs

When it comes to NBFCs, they are a lot more flexible when it comes to giving loans as compared to banks. They are much less restricted in terms of the choice of course. Even the NBFCs have a verification process where they check the students’ entrance exam results, their stream, the course they want to pursue, and the university that is offering the course. They agree to sanction loans to unconventional and vocational courses like sports engineering, music, animation, painting, theatre, dance, language, data sciences and other new-age technology courses.

Compare the options- To get the best educational loan, be sure to check with more than one lender so as to get an idea of the different rates you are being offered. This will help you get the best education loan as you can then choose the best loan among the different options offered to you. The factors that you need to make sure of while looking to get a loan are as follows:

The interest rates- When it comes to the interest rates applied on loans given by the bank, they were linked to the bank’s base rate. But since 1st April 2016, interest rates are linked to the bank’s marginal cost of funds based lending rate (MCLR). NBFCs do not follow the concept of MCLR, they set their rates based on the current competition and their fund costs. So you should compare which is more suitable for you to go with accordingly. 

Repayment options- The repayment options for both the banks as well as the NBFCs are similar. Ideally, all the educational loans have many repayment options. There are many options that you can choose, like starting the EMIs after 6 months of completing the course, or you can also start paying before that to help clear out the loan amount faster. 

We hope this article has helped you, all the best!   

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·         https://www.avanse.com/education-loan/study-abroad-loan 

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A great way to easily repay your education loan

The cost of quality education is increasing with each passing day. As a result of this, many students find themselves taking an education loan and then repaying it after the completion of their education. This can make a serious hit on their savings and of course, the burden of debt keeps hanging over their head. An easy and convenient option to get out of this situation is provided in the way of student loan refinancing. In this article, we look at five reasons why you should consider this option for repayment of education loans:

•       Lower interest rate: The biggest advantage of student loan refinancing is that it reduces the amount the applicant will have to pay as interest while repaying education loans. The interest rate provided during the student loan refinancing can be up to 100 basis points lower than the original loan. 

•       Lower EMI: As education loans add the interest amount in the monthly installment. A reduced interest rate (after refinancing the loan) will of course bring down the installment value. This can make the life easier for the applicant and reduce the financial burden on him/her.

•       Flexible repayment & tenure: Student loan refinancing could also allow the applicant more time to repay the loan through extended tenures. This will also result in a lower EMI during the repayment process. This allows the applicant to save more and live without the stress of not being able to cope with the loan installment every month.

•       Low/Zero processing charges:  Along with all the advantages stated above, the process for student loan refinance is also quite low. Some lenders also provide this facility at zero processing fees! So basically, you can switch from your old education loan to a new one at lower interest rate with a lower installment and get longer tenures. This makes for a very good proposition for any applicant who has been having problems with the repayment of their education loans.  

•       Top up facility: One of the added advantages of the student loan refinancing scheme is that while providing the applicant the amount to pay the education loans at lower interest rate and providing flexibility in tenure, the lenders can also provide a top up facility. This means the applicant can get loan amount over and above the outstanding education loan amount. The additional amount provided at the lower interest rate can be very useful to the applicant and can be used for any purpose he or she pleases. This also helps the applicant to reduce his number of repayment commitments as the installment of both amounts is combined.

So, as we saw in this article, student loan refinancing is a very useful option to consider by people struggling to cope with the repayment of their education loans. We hope this article was helpful to you and informed you about student loan refinancing and how useful it can be in repayment of education loans. Have a great day!      

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