Here’s a Checklist for Education Loan Guaranteed Approval

Getting a good education at college could be one of the things that transform someone’s life. However, higher education is expensive. The cost of pursuing a degree in one of the world’s most prestigious universities is very high. 

Choosing between taking money out of your savings and a personal loan for education can be difficult as a parent.

Education loans are becoming popular for financing higher education today. Education loans are a great way to finance a college degree because they offer flexible payment options that allow you to spread the cost over time. Nevertheless, some students are unable to secure these loans because they do not meet the personal loan eligibility criteria of the lenders. Do you want to qualify for an educational loan? If so, read through this list carefully before applying. Keeping track of these points will increase your chances of being approved for educational loans. You can apply for the education loan here:

https://www.fullertonindia.com/personal-loan-for-students.aspx 

Why is an Educational Loan Required? 

An educational loan allows you to borrow money from a lender to cover the cost of your education or training. The amount you need to pay back depends on the type of loan and the length of time it covers. 

The student, parents, legal guardians, or a third-party guarantor, jointly apply for education loans or student loans. The loan’s goal is to pay for the education costs, including boarding and housing, tuition, books, and other supplies, health insurance, travel, admission, etc.  

Who is eligible to obtain an education loan?

Students may apply for a loan while adding their parents or legal guardians as co-applicants. Essentially, the primary borrower is the student. Co-applicants can be a parent, a spouse, or a sibling.

Nevertheless, the eligibility criteria for a personal loan for education can differ depending on the lenders. 

Affordable personal loans from Fullerton India are available for higher education. 

If you are using this personal loan to support your child in finishing their higher education, you are not obliged to put up any collateral. These loans can also be used by professionals who want to advance their education to improve their career chances. 

It is unlike the education loans typically given to students who want to pursue higher education in India or abroad. A personal loan can be used to pay for your education with no end-use restriction. 

To be eligible for this loan, the primary applicant needs to satisfy the following personal loan eligibility criteria:

  • The primary applicant needs to be self-employed or a salaried employee.
  • The primary applicant must be between the age of 21 and 60.
  • A minimum credit score of 750 is required of the primary applicant.
  • The primary applicant has to have a work experience of a total of 1 year and at least six months in the current place of work. 
  • Moreover, the primary applicant must have minimum salary/income requirements. 

Students/co-applicants can avail of student loans up to Rs. 25 lakhs, with flexible tenures ranging from 12-60 months at competitive interest rates.  

Must Read: Education Loan in India: 7 Things you need to know

What documentation is needed to obtain an education loan?

The lenders may ask for documents like an acceptance or admission letter from the school, the fee structure for the college, and your Class X, XII, and graduation (if applicable) mark sheets. They may also require Marksheets of any entrance exams taken such as TOEFL, GRE, GMAT, CAT, etc.

Additionally, the applicant’s financial records, such as bank accounts, pay stubs, and income tax returns, are required. The most obvious is KYC documentation.

A pre-admission sanction of the loan may be used to apply to institutions overseas.

Other documents required by the student/co-applicant will be:

  • Loan application form, duly signed 
  • Passport-sized photographs  
  • PAN card copy 
  • Valid passport 
  • Last two years audited balance sheet (for self-employed person)
  • Proof of identity (Passport/Aadhar/license/PAN card/Voter Id card) 
  • Proof of Address (Passport/Aadhar/license/Voter ID card/Electricity bill)
  • Last six months’ bank statement 

Conclusion

Education loans give students access to funds they can borrow from lenders to fund their studies. However, choosing the right lender and comparing them before signing any documents can save them hassles later.

When choosing an educational loan, the prime factor is the interest rate. It determines the overall cost of funding the study. 

Further, one must consider more than default rates and repayment plans to evaluate loans properly. Regarding your ability to make payments, you must be fully honest with yourself. You must carefully evaluate this choice because it will be the first significant financial decision you will make in your life.

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