However many students choose not to go for Higher education due to one major reason that is lack of finance. Relax! To solve this problem the Government and many of the private bank companies in India have taken major steps in the form of providing Student Loan India to such aspiring students in India as well as abroad.
Theses private banking companies are called NBFC’s. They provide a wide variety of study loan to the students who want to go abroad for the higher education as well as the foreign students who want to study in Indian Universities and Institutes. India has emerged as an education hub in the recent past and thus new age universities and education institutes for both the niche as well as for the other courses. Thus these companies provide a 100% loan coverage and no margin money is charged on the loan amount. There is no cap on the study loan amount and they charge an interest rate of 12.75 %.
However to avail a loan there are some student loan eligibility criteria which has to be followed by the Indian and foreign students. The student loan eligibility criteria for India as well as abroad students don’t differ much. These are simple and easy that each student can easily be eligible for, the student who aspires to get higher education must be an individual who is a Indian citizen and 18 years or above.
Before the bank disburses the amount the student must confirm his or her admission in their respective institute. There are some separate student loan eligibility criteria for the co borrower as well. The co borrower of the Indian student or foreign student must be Indian citizen and could be a parent, sibling, legal guardian or a relative. Another important student loan eligibility criteria is that the student must have an earning co –borrower who co-signs the student loan along with student.
The co borrower must have a bank account in India with cheque writing facilities. The student taking the loan would require submitting his or her KYC documents and educational documents. The normal course and fee details. The co borrower also requires submitting his KYC, income and collateral documents.
However the courses for which the students are applying loan for include the graduation, post-graduation and professional degree/ diploma courses which are conducted by the UGC/ AICTE and by autonomous institutions like IIT, IIM etc. the technical, engineering , medicine, law, management, aviation etc. vocational training courses, technical and executive programs.
These banks charge a nominally rate of interest of 1-2% of the loan amount. The collateral to be kept against the loan amount can be residential property, life insurance, existing house mortgaged and the non-agricultural land. Thus to avail a loan amount for Higher education a student has to confine and follow the proper terms and conditions required and should aptly fit in the student loan eligibility criteria to avail a hassle free tailor made student loan for his or her Higher Education.