The education loan has a big market, considering that several students are interested in pursuing a higher education both, within the country and abroad. Several banks offer a study loan to the meritorious and deserving students who require finance to continue their studies.
Not only has such an education loan helped boost careers, it also helps individuals afford the payment, something which they wouldn’t be able to do on a normal basis. However, before even accessing this loan, you would first need to be eligible for it.
Most banks set down certain criteria for applicants who would want to purse this form of financial assistance. They consider a certain set of factors before reviewing the application. It includes:
• Student’s academic background and qualifications. It would also include the track record of the marks, credits and achievements.
• The course that is being sought. These courses must be accredited and worthy of studying. Additionally, it should also possess a good chance of placement and job prospects, which allows the applicant an opportunity to repay the loan.
• The institution where the course will be pursued. Whether it is a school, college or even a university, it should possess a good reputation along with the right accreditation.
• The collateral offered during the loan application. The bank will consider the value of the collateral, whether or not the applicant can afford it.
• Whether the applicant has potential co – borrowers or guarantors of the education loan. Furthermore, lenders will also check the job profile and credibility of these co – borrowers.
Apart from these factors, certain set of courses are also eligible for education loans. Lenders will offer the loan to students to study in almost anything, so long as the course and the institute are accredited by the concerned authorities or possess a good reputation. Courses that are eligible for this financial assistance include:
• Undergraduate degrees/diplomas and special courses
• Postgraduate degrees/diplomas and special courses
• PHD’s and doctoral programmes
• Specialised courses, training and diplomas.
Alternatively, certain banks will sponsor a study loan for special courses, especially if there is a prospect of a job, or an enhancement in the current employment. Some of the courses include:
• Agri diploma
• Certificate courses from ITI
• Computer certification courses
• Courses run by State Skill Missions, State Skill Corporations, or National Skill Development Corporation
• Data entry operator course
• Degree or diploma courses for aeronautics, pilot training, shipping held by recognized regulatory bodies. This course is normally associated for the purpose of employment in India or abroad.
• Engineering diploma
• Nursing or teacher training certification courses and B.Ed
• Veterinary diploma
• Vocational courses run by government organization or certain departments.
Apart from the courses, certain institutes are also taken into consideration when it comes to their eligibility. Lenders will look at the institute’s reputation. Additionally, they may also have a pre – approved list of universities and even a blacklisted one. Some of the universities that are preferred for the studies in India and abroad include:
• Educational institutes that have been recognized by the UGC, Govt., AICTE, AIBMS, IMCR, etc.
• Polytechnic institutions that have been approved
• Reputed foreign educational institutions
• CPA in USA, CIMA-London, etc.