Quality education is a mandate for successful life of the person. Knowing these aspects parents keep struggling to helps their children provide a quality education. To keep up with the sky- high prices of the higher education, parents plan for some long term investments like mutual funds and unit linked funds yet, they experience a financial deficit to address the educational needs of their children and this is the juncture where loans for further education students come in. These loans urn to be a quick financial aid in addressing the educational needs of the students especially when they wish o complete their higher education abroad.
Every student who is looking for loan to complete their higher education should adhere with the education loan eligibility requirements of various banks.
Who can apply for the loan?
You will be eligible to apply for the education loan if you are citizen of India with desire to complete higher education despite of your financial capability. The loans for further education students is offered when , parents or sibling or earning spouse stands as a co- applicant for the loan.
Your student loan eligibility is calculated by the lender up on having the admission in the university which you are pursue your higher education either within the country or outside the country. The loan amount you get to pursue your higher education varies from lender to lender. However, there is a cap on the loan amount that is granted trough these banks. A cap of 10lakh is levied on the loans for further education students for pursuing higher education with the country. If you are seeking loan to pursue higher education abroad, you will get a maximum loan amount of 20 lakhs depending on the course you are going to pursue.
Though you as parent stand as co- applicant for the education loans, the lenders asks you o submit collateral to get education loan eligibility. When the loans for further education students are below 4 lakhs, you are not required to pledge any collateral. Any loan amount beyond this makes it mandate to pledge collateral.
Most of the students are worried about repayment of the loan while availing it. To keep the students away from the issues of loan repayment, government of India has brought some customized repayment option for the education loan. All the students enjoy holiday period regarding the repayment of the loan, the student that has availed the loan need not worry about the repayment of the loan during the course of education. They should start repaying the loan either one year after completing the course or after six months of completing education.