Applying for an education loan? Here’s what you need to know

Educational loans are highly sought after by students aspiring to pursue their higher studies. Banks have programs to offer these loans to deserving as well as meritorious students who will need financial support to continue their higher education.

But, not all students are eligible for educational loans. Here we list the criteria set by the banks that will decide a student’s eligibility for educational loan.

Factors considered for educational loan eligibility

When the banks will decide to accept a candidate’s application for educational loan, the following criteria will be considered.

• The academic history of the student, qualifications earned, the performance evident through marks, achievements and credits.
• The course for which the student seeks the loan. The courses applied for must be accredited and also worth pursuing endowed with good career prospects. The courses that have a good chance of placement will only be considered in order to ensure that the student will be able to repay the loan.
• The institution in which the student wants to pursue the course should enjoy a good reputation and accreditation.
• If the student can provide a collateral and the value of the collateral offered by the student
• Who is guaranteeing the loan – including the parents, acceptable third parties, and co-borrowers and if the co-borrowers have the required credibility and job profile

Courses that are eligible for getting an educational loan

The students applying for an educational loan can choose to study any course provided that the course and the institution are accredited by the concerned authority. The courses that can fetch educational loans include.

• Undergraduate degrees or diplomas and some specialized courses
• Postgraduate degrees or diplomas and some specialized courses
• Phd research study and Doctoral Programs

Banks come forward to sanction educational loans for some specialized courses, diplomas and training programs. Since not all banks will be ready to offer loans for such courses, a student can research to find the bank that will provide the loan necessary if there are strong job prospects or chances to advance the present career connected with the course opted for. Here is a list of some special courses that are eligible for loans by some banks.

• Certificate programs in computers
• Diploma in engineering
• Certificate courses offered by ITI
• Data entry operator training program
• Nursing or teacher training certificate courses and B.Ed
• Diploma in agriculture
• Diploma in veterinary medicine
• Diploma or certificate courses that are job-oriented
• Degree or diplomas in the fields of aeronautical engineering, pilot training, and shipping that are provided by some reputed and accredited institutions for the purpose of jobs in India and abroad.
• Vocational courses offered by a Government department or body
• Courses offered by skill development organizations like State Skill Corporations, State Skill Missions, or National Skill Development Corporation.