How to get a student loan? Check eligibility criteria, required documents and other details here

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EVERY student dreams of getting a higher education at a prestigious university because it guarantees lifelong income and success. The cost of a good education in the best colleges or institutes is increasing day by day. While only a few can afford to finance their child’s education, millions of other students who want to go to prestigious universities can fulfill their dream by taking out an education loan.

The student loan helps cover a student’s expenses. The loan covers tuition fees, accommodation costs, cost of books, laptops, exams and library fees.

Student Loan Eligibility Criteria

To take out an education loan from the bank, a student must be a resident of India and have confirmed admission to a recognized institution in India or abroad. The age must be between 18 and 35 years old. Students must bring all their mark sheets or their graduation certificate. Banks most often favor employment-oriented training such as technical or vocational training.

Loan amount and down payment

The total amount of the loan may vary depending on the total amount of the course and the income of the applicant’s family. Students can get up to 4 lakhs of student loans for higher education without any collateral and a maximum of 15-20 lakhs for studies in India. For study abroad, students can get more than 25 lakh.

Student loan interest rate

The interest rate is a bit high in the case of student loans due to their unsecured nature. However, the interest rate of the loan keeps decreasing and increasing. Interest rates vary by university category and students can choose a fixed rate or a variable rate from the bank. Some banks give a concession on interest rates for girls.

Duration of student loan repayment

Most banks allow a delay of up to one year after completing the course or six months after getting a job. This means that students do not have to pay the loan during the course period. Depending on the amount of the loan and the criteria, the repayment period can be between a few years and a maximum of 15 years.

Required documents

The documents required for the student loan are an identity document and proof of residence of the student. Guardian’s income and bank statement. The mandatory document will be an admission letter or a letter of offer from the university giving a breakdown of the fees.

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