Loan Eligibility | Education Loan for Masters

Public and private banks, along with various financial institutions, have actively supported students from diverse backgrounds by offering Education Loan for Studying Abroad in 2024 to those aspiring to pursue a master’s degree abroad. However, Non-Banking Financial Companies (NBFCs) have implemented stringent criteria for eligibility for education loan for master programs, particularly when it comes to studying abroad. Understanding the eligibility for education loan for post-graduation is essential, as these criteria significantly impact the approval process. For those planning to study abroad, meeting the specific eligibility for education loan for post-graduation in abroad is crucial to securing financial support. Below are the key factors that influence eligibility for education loan for masters programs abroad.

1 Required Details for Education loan for Master

1. Admission to a Recognized Institution

The applicant must have secured admission to a recognized foreign university or college. Banks prefer lending money to individuals pursuing courses that are job-oriented, as they increase the likelihood of post-graduation employment and repayment capability.

2. Nationality

The applicant must be an Indian citizen. Some banks may require the applicant to be at least 18 years old.

3. Academic Record

A strong academic record is often required. Some lenders might consider entrance exam scores or the selection criteria of the foreign institution. A good academic history improves the chances of loan approval as it indicates the student’s potential to succeed in the course and secure employment.

4. Co-Applicant Requirement

A co-applicant, usually a parent or guardian, is necessary. The co-applicant’s financial stability is often considered since they serve as a guarantor for the loan. The co-applicant's credit score is crucial, as a higher credit score indicates lower risk to the lender, potentially leading to better loan terms.

5. Collateral

For higher loan amounts (typically above INR 7.5 lakh), collateral is generally required. This could include property, fixed deposits, or other tangible assets. Collateral provides security to the lender, reducing the risk associated with large loan amounts.

6. Credit Score

The applicant’s (or co-applicants) credit score plays a significant role in loan approval. A higher credit score increases the likelihood of loan approval and may result in lower interest rates. A score above 750 is generally considered good.

7. Repayment and Interest Rates

The loan repayment usually starts after a moratorium period, which could be the course duration plus 6-12 months. Interest rates and repayment terms vary by lender. Repayment tenures can extend up to 15 years, depending on the loan amount and the lender's policies.

2 FAQs

Q1. How to Get an Education Loan for Your Higher Studies Abroad?

Answer: To obtain an education loan for higher studies abroad, first, check if your chosen course and institution meet the eligibility criteria set by lenders. Next, determine your financial needs, compare lenders, and select one offering the best terms. Finally, apply for the Education Loan for Studying Abroad in 2024 by submitting the necessary documents and fulfilling the bank's requirements.

Q2. What is the eligibility for a master education loan abroad?

Answer: The eligibility for an education loan for masters program abroad generally requires having a relevant undergraduate degree and proof of admission to a recognized institution. The co-applicant must have a stable income and a good credit history. You must also provide the necessary financial documents.