Eligibility criteria: education loan for Bachelors to Study in Abroad

Understanding the eligibility criteria for education loan is crucial for securing financial support for your studies. Whether you're applying for education loans for international education or domestic courses, meeting the eligibility requirements is essential. Meeting these eligibility criteria for education loans can help streamline your application process and improve your chances of securing funding.

Nationality: Must be an Indian citizen.
Age: If under 18, parents must apply on behalf of the student.
Academic Record: A strong academic background is required.
Admission: Must have admission to a reputable overseas college or university.
Course: Preference is given to technical or professional courses.
Degree: The loan is applicable for graduate, postgraduate, or post-graduate studies.
Co-Applicant: Full-time students need a co-applicant (parent, guardian, spouse, or parent-in-law) with a steady income.

Meeting the eligibility criteria for education loans is key to securing financial support. By meeting these requirements, you increase your chances of obtaining loans for both overseas and domestic studies.

1 Documents Required for Education Loans for bachelors

When applying for education loans, having the correct education loan documents is crucial. This is especially important for securing education loans for international education. Here is a list of the essential education loan documents you will need.

Admission Letter: Proof of acceptance from a recognized university or institution.
Passport: Valid passport for identity and travel.
Academic Records: Mark sheets, degree certificates, and transcripts.
Income Proof: Co-applicant’s income documents, including salary slips, income tax returns, and bank statements.
Collateral Documents: If applicable, documents like property papers or fixed deposit receipts.
Loan Application Form: Completed form from the lender.
Photographs: Passport-sized photos of the applicant and co-applicant.
Test Scores: Scores from tests like TOEFL, IELTS, GMAT, or GRE, if required

2 Eligibility Criteria for Education Loan without Collateral

Understanding the eligibility criteria for education loan without collateral is vital for securing funding. This is particularly important for those seeking education loans for overseas studies. Knowing these eligibility criteria for education loans helps streamline the application process and improves your chances of approval.

Academic Profile: A minimum of 60% marks in 10th, 12th, and degree are required. Students with more than 3 backlogs may not qualify.
Financial Co-Applicants: The co-applicant's income and CIBIL score are crucial. Since there's no collateral, the co-applicant is responsible for repayment if the student defaults.
Course/Degree: Preference is given to UG and PG courses in STEM fields. Courses like Ph.D., MBBS, and other niche fields (e.g., baking, art) may be less favored.
Country: Major study-abroad destinations (US, UK, Canada, Australia, Ireland, Germany) are preferred. Lesser-known countries like China and Ukraine may be less favorable for unsecured loans.
University: Unsecured loans are only approved for universities on the bank’s approved list.

Meeting the eligibility criteria for education loans is essential for securing an education loan without collateral. Fulfilling these requirements can streamline obtaining financial support for your studies.

3 Documents Required for Education Loan without collateral

Banks and NBFCs offer education loans without collateral only after thoroughly reviewing the student’s and co-applicant’s education loan documents. This is crucial for securing education loans for international education, where document accuracy and completeness are essential. Here are the required education loan documents.

Photographs: Two passport-size photos of each of the applicants and co-applicants.
Academic Records: Mark sheets and passing certificates of S.S.C., H.S.C., degree courses, and entrance tests (e.g., IELTS, TOEFL).
KYC Documents: Know Your Customer (KYC) identification documents.
Offer Letter: A copy of the institute or university offer letter, including the fee schedule.
Bank Statement: Bank statements for the past 6 months.
Income Proof: Proof of income for the guarantor or co-applicant, such as salary slips or Form 16.

4 FAQs

Q1. Can I get an education loan without collateral?

Answer: Yes, you can get an education loan without collateral. The Credit Guarantee Fund Scheme for Education Loans (CGFSEL) allows for collateral-free loans. However, be aware that lenders may charge higher interest rates for such loans due to the lack of collateral.

Q2. What are the eligibility criteria for education loan?

Answer: To be eligible for an education loan, you must:

Be an Indian citizen.
Have at least 50% marks in HSC and graduation.
Be admitted to career-focused courses (e.g., medicine, engineering, management) at the graduate or postgraduate level.
Secure admission in India or abroad through entrance exams or merit-based selection.
Have a co-applicant (parent, sibling, or guarantor) with proof of regular income.