Student Loan Eligibility

1. 4 Important Things You Must Know About Student Loan Eligibility.

2. Student loan eligibility is a very important factor to consider when applying for an educational loan. Though most lenders will promise 100% financing, your eligibility determines the terms and conditions applicable on this promise. To give you a better picture, the follow article will tell you 4 important factors to keep in mind in regards to student loans and their eligibility. 1. Primary eligibility benchmarks. You need to satisfy certain basic eligibility criteria to avail a student loan in the first place. To begin with, you need to more than 18 years old and an Indian citizen. You will also compulsorily need a guarantor who is above 18 and an Indian citizen as well. The guarantor will also need to have a bank account that allows him/her to write cheques. 2. Student loan eligibility.Now that you’ve satisfied the minimum eligibility criteria, you can check how much of a loan your lender is willing to provide. This will depend on a number of factors. Some of the include your academic record, your entrance exam marks, the credit history and financial backing of your guarantor along with his/her monthly income and outgo.

3. 3. How do I check my eligibility?

4. Simple, just visit the website of your lender and look for a student loan eligibility calculator. Click on it and fill-in the details and press the enter button. Within seconds, the calculator will calculate the loan amount you are eligible for keeping mind your monthly income and expenses, the loan tenure and interest rate.4. Okay, but what about 100% financing?The loan amount provided by the student loan eligibility calculator might not be enough to cover the cost of your education. In that case, you can pursue your lender to provide 100% financing, however, they might provide it to you under certain conditions. To understand them, you first need to place yourself in the shoes of your lender.You have to understand that providing a student loan is a risk. The level of risk depends on a number of factors. For example if you are an average student with a mediocre financial backing, you pose a significant risk to the lender. On the other hand, a student with a meritorious academic background and decent financial backing is a much lower risk to the lender

5. Keeping this in mind, the lender will be more willing to provide the second student 100% financing, but when it comes to the first student, they may provide 100% financing only if the borrower provides some sort of collateral or agree to pay a higher rate of interest. Now you can apply this logic to various scenarios – say you need financing above and beyond 100% course fees and your lender denies at first, offering security collateral might cause your lender to change their mind. These were 4 of the more important points to keep in mind about student loan eligibility. Hope you have a better idea of things work in this regards. Good luck and all the best, study hard!