Now that you have the required documents the most important question you should get answered is are you eligible for an education loan?
Also how large a loan can you get?
What expenses does the loan cover?
Do you have to provide collateral for the loan?
Here are some important things you need to know before you apply for a loan:
Does your course qualify for a loan?
Loans are available for educational courses within the country and abroad. Bear in mind that banks usually offer loans for courses that are for a duration of a year and above. The specific list of courses varies from bank to bank.
Studying in India
You can get education loan for most graduate, post-graduate and professional courses (engineering, medicine, veterinary, law, dentistry, management).
Student loans are also available for programmes like those of the Institute of Cost and Work Accountants of India (ICWAI), the Institute of Chartered Accountants of India (ICAI), the Institute of Chartered Financial Analysts of India (ICFAI).
Courses recognised by the University Grants Commission (UGC), the All India Council for Technical Education (AICTE), the AIBMS, and the Indian Council for Medical Research (ICMR) are alos eligible.
Students opting to study less conventional courses like biotechnology, fashion technology and aviation can also avail of education loans. Banks are usually flexible in approving and disbursing such loans.
Studying abroad
Here are a few courses for which banks offer student loans if you are opting for an institute abroad:
Undergraduate job-oriented professional/technical courses offered by reputed universities
Post-graduate courses like MCA, MBA, MS
Courses conducted by CIMA, London, CPA, USA
If you are an employed person and want to better your prospects, you can avail of a loan to get additional educational qualifications and/ or receive training in modern technology in India/ abroad.
Are you eligible?
To be eligible for an education loan:
You must be an Indian national
You must be in the 16-26 age group, or any other range specified by the bank
You must have a good academic record (first class throughout, with no gaps or breaks)
Your parents/guardian should have a regular source of income so that they are able to repay the loan if the need arises
The institute you have applied for must be a recognised one
Minors are ineligible for educational loans, as banks assess the individual's repaying capacity while disbursing the loan. But you can avail of the loan if your parents/guardians satisfy the eligibility criteria.
Photograph: Dijeshwar Singh/ Saab Pictures | Image: Students filling-up their forms
Also see: The art of wealth management
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