Vidya Lakshmi Portal has streamlined the education loan process in India. With this portal, study abroad and domestic students can apply for central government education loans on this platform. This is a common platform for education loans from nationalised banks of India. Some of these banks include the State Bank of India, Union Bank of India, Bank of Baroda, and Bank of Baroda.
If a student is unable to avail of federal government loans in India, he/she/they can opt for private student loans. These loans are available at private banks like ICICI Bank, HDFC Bank, Axis Bank, and IDFC First Bank. To avail of these loans, students can apply directly through the lender’s website. Furthermore, students can also directly apply for education loans through the websites of NBFCs.
Whether applying for public or private loans, students need to research lenders properly. Additionally, the bank or lender may conduct a “hard inquiry” on the credit history of the applicant. This inquiry is recorded on the beneficiaries’ credit report and having too many hard inquiries can potentially impact the CIBIL score of the applicant or the co-signer. Therefore, it is advisable to complete the student loan application as soon as possible to minimize the impact on your credit standing.
To ease the education loan process, students can connect to Fly Finance. By doing so they can get student loans at the best interest rates. Furthermore, students can also calculate Euqated Monthly Instalments (EMIs) using the Fly Education Loan EMI calculator.
Eligibility Criteria for Education Loans
Understanding the eligibility requirements for an education loan is equally crucial as gathering the necessary documentation for the loan application. Although the repayment method, interest rate, and loan limit can differ across various banks, certain general conditions remain consistent. Let’s review the fundamental eligibility criteria for applying for an education loan:
1. The applicant must be an Indian citizen.
2. A co-applicant, who can be a parent, sibling, or spouse, is mandatory.
3. Collateral is required for loan amounts exceeding 7.5 lakhs. However, the requirement changes for each education loan process, depending on the lender and credit score of the applicant.
4. The student should possess an outstanding academic track record.
5. Admission to a recognized foreign university or college is a prerequisite for the loan application.
Documents Required to Complete Education Loan Process
Securing an education loan necessitates the submission of an extensive array of documents. Hence, it is of utmost significance for candidates to ensure the accuracy of the list of documents required. To assist with this crucial step, we have compiled a comprehensive list of all the necessary documentation needed for the education loan application. Take a look below:
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