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Do you dream of pursuing higher education from a premier institution inside the country or in an international location? If so, you can go for an education loan in India to turn this dream into reality. Scroll through this article to get in-depth guidance regarding getting a loan for financing your education.
Table of Contents
Check Your Eligibility
While borrowing an education loan, you must begin with evaluating your eligibility. You will have to demonstrate a good credit history to get your education loan application approved. Moreover, you will have to show proof that you have enrolled in a premier educational institution inside the country or in a foreign location. Moreover, your existing financial commitments and potential earning level after completing the course will influence your eligibility.
Look Out for Interest Rates and Repayment Options
While getting an education loan, you must check the financial rates offered by different banks. You should go with a financial institution that offers the most affordable education loan interest rates. Choosing a shorter tenure and having a good credit score can help bring down your interest rates.
Moreover, evaluate the repayment terms set by the lender. You should always look for flexible repayment options with customised plans, grace periods, and other benefits.
Create a Strong Loan Application
You must be able to submit all documents required for education loan to increase the chances of approval. Apart from filling out an application form, students need to submit the following documents to secure an education loan:
● Photo ID proof
● Passport-sized photograph
● Residence proof
● Admission proof
● Academic documents
● Fee structure document
● Salary slips (if applicable)
● Visa copy for overseas studies
Find a Co-Borrower
When you are getting aneducation loan for abroad studies, you will have to get a co-borrower to sign the application. In case you fail to repay the education loan, the responsibility will fall upon your co-borrower. Picking a reliable co-borrower is essential because the repayment capacity of the co-borrower often determines how much you can borrow. Moreover, the co-borrower should submit certain necessary documents to help you secure the education loan. A few documents that the co-borrower should submit are as follows:
● Bank statements for last 6 months
● Residence proof
● ID proof
● Passport-sized photograph
● Relationship proof
● Residence ownership proof
● Balance fund proof
● Income proof (if applicable)
● Collateral documents (if applicable)
Show Financial Responsibility
Lenders will be inclined toward letting responsible individuals borrow funds. You should be able to prove that you are an obedient student and a good borrower. Try to keep a good credit score, manage your finances intelligently, and pay all your bills on time.
Bottom Line
If you are looking for an affordable education loan, IDFC FIRST Bank should be your first choice. You will be able to borrow up to Rs 1 crore with affordable interest rates. The bank also offers flexible repayment terms and a tenure of up to 15 years. So, visit the IDFC FIRST Bank website or app to submit your education loan application.
Also Read: Easy Admission Requirement to Study MBBS in the United States
