The basic education loan eligibility is the academic excellence and achievements of the students. In other words, the eligibility of the applicants is assessed on the basis of their academic performance as cited in the mark sheets of previous exams.

The vital education loan eligibility criteria that the candidates need to fulfil to get approval for the loan are listed out here:

• The candidate applying for the loan must be a resident of India.
• He/she must have confirmed admission in recognized educational institutes in India or abroad.
• The age of the candidate must fall within the bracket of 18 to 35 years during loan application.
• He/she must be undergoing a graduate degree.
• The applicant should have a secured admission in a college or university affiliated by UGC/AICTE/Govt. etc.
• Students pursuing full-time courses need to have a co-applicant who can be either parent/guardian or spouse/parent-in-law (in case of married candidates).

Education Loan Documentation

As told earlier, education loan documentation doesn’t involve any hard-core paperwork. The process is simple and can be conducted online without paying physical visits to the banks. However, the process might vary depending on the criteria set by various banks or lending organisations. Also, the banks being very strict in their terms, failure to submit the mandated documents will lead to rejection:

Required Documents

Here are the mandatory documents that a student need to provide to the banks while applying for a student loan:

• Duly filled and signed application form with affixed photographs
• 2 photographs of passport size
• Copy of exam mark sheets of 10th/12th or latest education certificate
• Statement of course expenses/cost of study
• Aadhaar Card and Pan Card of the student and Parent/ Guardian

Age proof

Copy of Aadhaar Card /Voter ID/Passport/Driving License

Identity proof

Copy of Voter ID/Aadhaar Card/Driving License/Passport

Residence proof

Rental agreement/Bank statement of 6 months of the student or co-borrower/guarantor/Copy of Ration card/Gas Book/Electricity Bill/Tel Bill

Income proof

• Most recent salary slips or Form 16 of the parent/ guardian/co-borrower
• 6 months bank statement of the borrower or updated passbook of bank
• Updated ITR (Income Tax Return with income computation) of 2 years or IT assessment order of last 2 years of parent/co-borrower/guardian
• Documents stating the assets and liabilities of the parent/co-borrower/guardian

What will Improve Your Eligibility for an Education loan?

In order to make sure that the monetary help reaches the worthy students, banks are very strict in assessing the eligibility of the candidates. The overall academic excellence of the students, their future course of education and status of current admission are the basic parameters that evaluated before giving a loan approval. Hence, working on the following areas will improve your eligibility for an education loan:

• Scoring high grades/ranking in the qualifying exams
• Displaying good academic record
• Getting admission in a reputed/top-tier institute or university
• Strong financial background of parents/guardians/co-borrower
• Displaying good prospects for future employment/income generation