Almost all private and public sector banks offer education loans in India. While the aim is to provide loans at simple term and affordable rates to enable the deserving students to pursue their dream of a higher education, these loans are available for specific courses offered by certain defined institutes. Just like all loans, these loans are also given if the applicant meets the eligibility criterion laid down by the lender. Since these loans are given for higher education, the course and institute are of paramount importance. Here we discuss the institutes and courses for which education loans are available.
Eligibility Criteria For Education Loan
As we said these loans are available at fairly easy term, education loan interest rate fixed by most lenders is usually not too high. However there are certain eligibility conditions that must be fulfilled by the applicant for availing these loans. We discuss about the acceptable courses and institutes in the next paragraph.
The loan is available to citizens of India; they need to have the necessary documents that prove admission to the said course and institute, expenditure details, identity/address proof, income proof of the guardian/parent/co-borrower, their IT returns and so on are required when applying for the loan. Parents or guardians are required to be co-borrower for all education loans, however for loans more than Rs. 7.5 lakhs tangible assets may be required as collateral and for loans between Rs. 4 lakhs and 7.5 lakhs a third party guarantee may be required.
Lenders are likely to seek the credit report of the co-borrower in order to assess their credit worthiness and judge if they can be relied upon to repay the loan in case the applicant (their child/ward) fails to do so after course completion.
Courses for Which the Education Loan is Available:
To state it in a nutshell the loan is available for all accredited courses offered by institutes that are recognized by the respective governing bodies. Loans are available for undergraduate programs, post graduate degrees, PhD and doctoral program and also special diploma courses. These loans are also available for specialized courses and training depending on each lender’s policies. Thus it is possible that one lender may offer a loan for one course while another may not. The list below gives the names of few courses for which loans are available are listed below:
To put it in a nutshell courses are available for courses that offer job prospects after completion or can enhance current employability.
While the course that is to be pursued is important, the institute to which admission is sought is also considered sanctioning the loan. Banks offer loans for courses that are available at recognized institutes and universities both in India and overseas. A good course and a recognized institute ensure that the student will find suitable employment after course completion and will be able to repay the loan. Loans are available for course offered at UGC, AICTE, AIBMS, IMCR and Government recognized universities and colleges; Polytechnic Colleges and recognized branches of foreign schools in India. Do Research about the education loan offered by each lender and also their eligibility criteria so that you are able to access the funds in time to secure your admission to the course.
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