Education Loan – Benefits, Eligibility & Application Process

Education loans help students continue their studies when they do not have enough capital to pay for them. With the rising costs of tuition fees at both local and international institutions, these loans have become an essential source of financial support. They not only cover tuition fees but also help manage expenses related to books, accommodation, and other necessities. By providing the required financial assistance, education loans reduce the burden on students and their families. In this article, we will discuss the advantages of education loans and the criteria required to be eligible for them.

Benefits of Online Education Loan 

An Education loan offer multiple benefits apart from just funding your education. Understanding these benefits helps one to clear their goal of taking these loans. Here are some key benefits of these loans.

Higher Amount of Loan

Several online lenders offer education loans starting from Rs. 50,000, covering expenses such as tuition fees, hostel charges, books, and other necessary costs. The loan amount a student can receive depends on their eligibility and the total education expenses. It is important to compare different lenders, check their loan offers, and select the best option that meets your needs.

Lower Interest Rates

Online education loans are available at competitive interest rates, making them a cost-effective option for students. These rates are repo rate-linked interest rates. This means it is the rate which is directly linked to the Repo Rate set by the Reserve Bank of India (RBI). Thus, if the repo rate increases, the repo rate linked interest rate will also increase and vice versa.

Pre Admission Sanction

Another significant benefit of an online education loan is that they are sanctioned before admission to the educational institution. This is done based on one’s profile, where they check whether the student can repay the loan. Also, it helps students to avail the funds in advance and pay the admission fee on time.

Quick Disbursal

When applying for an education loan online, one also gets to enjoy the benefit of quick loan disbursal. Most online lenders take around 15 days from the date of receipt of an application for disbursal.

Avail of a Variety of Courses

Education loans are offered to deserving students who get admission in well-reputed courses such as engineering, management, etc. These loans can be availed for any level of education, ranging from graduate to postgraduate, both in India and abroad. This flexibility helps students pursue their dreams without financial constraints.

Eligibility for Education Loans

To qualify for an education loan, applicants must meet certain eligibility criteria. While these may vary between lenders, some common requirements include:

• Age of the Applicant: The student must be between 18 and 35 years old.
• Admission Confirmation: The applicant should have secured admission to a recognised institution in India or abroad.
• Academic Performance: A good academic track record may enhance the chances of loan approval.
• Co-Borrower: Most lenders require a parent, guardian, or spouse as a co-borrower to ensure repayment.
• Repayment Capability: The lender will assess the financial stability of the co-borrower and the student’s future earning potential.

How to Apply for an Education Loan Online 

Applying for an education loan has become quite easy with the introduction of online education loan portals. Let’s understand the process of applying for education loans online.

Banking Websites

Various banks are offering education loans on their websites, both in the country and abroad. One must check their terms and eligibility criteria to see if their terms match your requirements or not. Choose the one that perfectly matches your needs and offers easy eligibility criteria for quicker approvals.

Banking Apps

Other than banking websites, banking apps offer education loans at competitive interest rates. People prefer these apps due to their quick application and disbursal processes. It usually takes around 3 days to a week to disburse the amount to your bank account. So comparing different apps and their conditions can help choose a suitable option.

Financial Websites

Other than banking websites, one can also consider various financial firm’s websites for education loans. Many reputed financial institutions offer these loans at competitive interest rates and flexible repayment options. Checking these websites increases your options to choose from which eventually leads to an informed decision.

Financial Apps

Financial institutions provide not only home improvement loans but also education loans through their mobile apps. They understand that people have busy schedules, and the most convenient way to assist them is through their smartphones. An education loan app offers competitive interest rates, requires minimal paperwork, and has an easy-to-use interface, making the loan approval process faster and more convenient than using a website.

Conclusion

Education loans are an essential support system for students who want to pursue higher studies without financial stress. With advantages like higher loan amounts, affordable interest rates, approval before admission, fast disbursal, and coverage for various courses, these loans can help students stay focused on their academic and career aspirations. If you are considering an education loan, take the time to research and select a lender that best suits your financial needs.