Education loan eligibility: What is it, how to check your eligibility & improve it.

 Education loan eligibility is a crucial aspect of any student loan. It’s something that needs to paid special attention to before sending in your loan application. Keeping this in mind, the following article will tell you everything you need to know about student loan eligibility, including what it is, how to calculate it and even how to improve it.

So what is student loan eligibility?

Education loan eligibility is a two-part process that determines firstly whether you are eligible to take the loan and secondly the amount of loan you are eligible for. To make it through `part 1 of the education loan eligibility, you need to:

-Be a citizen of India and above the age of 18

-Have a confirmed admission in the college or university you plan on studying in

-Have a co-borrower that is also an Indian citizen above the age of 18.

-Your co-borrower should have bank account that allows him/her to issue cheques.

If you tick all these boxes, you can move onto part two of education loan eligibility, which is the big one – the loan amount you are eligible for. This depends on several factors such as your educational history, your family’s financial background, the course you are pursuing, its job prospects, the university you are planning to study at, your co-borrowers credit score, his/her monthly income, etc.

If you have a good academic record, come from a well-to-do family, are pursuing a good course from a prestigious university and have a co-borrower with sound finances, your education loan eligibility is sure to be on the higher side.

How to check your education loan eligibility?

That’s simple – just log onto any education loan provider’s website and use the education loan eligibility calculator. You will have to enter a couple of details such as your monthly income and outgo and the interest rate of the loan. Basis these simple details, the calculator will tell you the ball park loan amount you are eligible for.

How to improve your eligibility?

Not satisfied with the eligibility amount provided by the calculator? Not to worry! There are a number of ways you can increase your eligibility. The first is to voluntarily offer collateral, even if you are not asked to do so. Most non-banking finance companies will provide collateral-free financing, but if you voluntarily offer collateral, it should up the loan amount you are eligible for.

The second way is to opt for multiple co-borrowers on your loan. It will be helpful if each of your co-borrowers has their own sourse of income. If you have scored well in your entrance exams, you can also use that to leverage better loan amounts.  

It is important to know your education loan eligibility before applying for the loan. It will ensure you do not have to endure the disappointment of a rejected loan application caused because you applied for a loan amount beyond your eligibility.

We hope this has been helpful for you, good luck and all the best with your studies.

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