Education is an essential aspect of one’s life and is an investment in their future. Lots of students aspire to continue their studies but cannot due to financial constraints. For those students, an education loan is a valuable tool that enables them to pursue their dreams without financial issues.
Applying for an education loan can be a challenging task. The process can seem even more complicated if you’re applying for a loan without a co-applicant. But don’t worry; we’re here to help.
In this article, we’ll outline the steps you need to take to apply for an Indian education loan. So read on to learn everything you need about financing your education.
Overview of Education Loan Requirements
Education loan is a popular way of financing our education. But what if you don’t have a co-applicant with whom to apply for an education loan? Can you still apply for an education loan on your own? The answer is yes! Before applying for an education loan without a co-applicant, we need to know here.
Various education loan eligibility criteria should be considered for those looking to apply for a loan without a co-applicant with income.
Age: Most education loan providers have a minimum age requirement, typically 18 years or above. You must also be of legal age in the state where you reside.
Citizenship: It’s a must to be a citizen of India. Some education loan providers may require you to have a valid government-issued ID or passport.
Income: The applicant should have a stable and consistent source of income. This is to ensure that they can repay the education loan interest after completing their education.
Education and academic record: Applicant must have an excellent academic record and be enrolled in a recognized institution of higher education. The lenders may also require a minimum GPA or score on a standardized test.
Work Experience: Many banks require applicants to have at least three years of work experience before applying for an education loan without a co-applicant. This criterion is put in place to ensure that you have a stable source of income and can repay the loan on time.
Collateral: In the absence of a co-applicant, most banks require you to provide collateral as security for the loan. This could be any property you own, such as a house or a car. However, some banks may consider other assets like fixed deposits or shares as collateral.
Repayment Capacity: Your repayment capacity will be assessed before the loan is approved. The bank will consider your monthly income, debts, and other financial liabilities before deciding on the loan amount.
Credit Score: An impressive credit score is crucial in determining eligibility for an education loan without a co-applicant. It indicates that you have always paid your debts on time and have a low risk of defaulting on the loan.
Ensure to meet all of these requirements before you start the application process, as this will help ensure a smooth and speedy application.
Interest Rates and Repayment on Education Loans
When applying for a loan, it’s vital to consider the interest rate and repayment terms. Education loan interest rate can vary depending on the lender, so it’s vital to compare rates before deciding. It’s also helpful to look into the repayment schedule. Some lenders may provide flexible repayment options that allow you to adjust your repayment schedule depending on your income or financial situation.
When it comes to the interest rate, FinDestination, the leading loan consultant in India, has some attractive offers for applicants.
Online Calculator Tools to Estimate Repayment on an Education Loan
Understanding the repayment obligations is crucial while applying for an education loan. An education loan calculator can help to estimate the monthly loan payments, so you can create a real budget to determine how much you need to borrow.
This simple online tool allows inputting the total cost of the education and the interest rate we expect to pay. The calculator then calculates our monthly payment based on the loan term, interest rate, and total amount borrowed. With this information, we can create pocket-friendly enough money to pay for your education and living expenses while in school.
If you’re looking for an education loan, FinDestination is determined to help. We are one of the top loan consultants with over 500 clients across India. We offer perfect solutions to suit various needs and fulfill your dreams.