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Education is the biggest and the strongest weapon with which we can eradicate the problems of illiteracy, orthodox way of living, terrorism, and increasing population to name a few.
There was a time when applying for a loan was not an easy task. You countlessly have to visit the bank and related officials to acquire money to accomplish your requirements.
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Time changes and with that we have seen the rise in awareness on the importance of education. Every public and private sector banks have loosened their regulations for student loan.
Many government and non-government sector banks providing easy education loan to students so that they can pursue their studies and contribute to the country’s economy.
On the one hand, where various financial institutions have facilitated the easy education loan, on the other hand, there are many people who do not know how to apply for education loan and what are the requirements to apply for a student loan?
If you are also a student and searching for a financial facility, then here we have brought to you the list of all the basic requirements that you have to fulfill to acquire an education loan.
This is a basic concept and a prior education loan eligibility. In it you have to be a student if you want to apply for an education loan. But merely being a student is not a guarantee that money your lender will sanction your loan.
To qualify for an education loan you have to show yourself enrolled in a school or college for at least a half a time. This is one of the many common prerequisites to apply for an educational loan.
Another important thing is that your school should be eligible to apply for the loan. Majorly many colleges offering four-year degree course qualify this criterion but the same does not go with the two-year community colleges.
In case you have doubts on your choice of college if it qualifies for a loan or not, you can always take help from your lender bank. The bank will assist you exceptionally.
Another basic requirement to apply for a student loan is that you should meet the age criteria along with citizenship and education status.
Every bank that you contact for an education loan, they check for the above mentioned three things.
The age in which you are entitled to apply for education loan is 18 and above. Majority of banks issue education loan only when a person is 18 or older with a high school diploma or equivalent degree.
Along with that, an applicant should have authentic documents that represent that he or she is a citizen or a legal resident of that particular country and they have the permission to permanently live and work in that specific country.
Education loan is given specifically to accomplish your educational goal. The loan sanctioned by the lender bank has to cover the cost of your college, therefore, it becomes mandatory for students to use this amount specifically for educational expenses.
Thus, you should plan your education loan in order to show it to the bank. After you apply for a loan, the bank will connect with your prospective college and verify the amount that you have applied for.
Once the college will certify the amount, the bank will transfer the required funds directly to your college.
After covering your expenses, if any amount left then the school will return that amount to you which you can use to buy educational expenses.
You should always remember that you have to return the amount issued to you by the bank. So, if possible try to return the installment as soon as possible. It will help you lessen your EMI after graduation.
The two most important requirements for student loan that will decide the eligibility criteria for your loan sanctioning are the credit scores and the income limit.
Generally, there are two kinds of student loans, first is a federal student loan and the second is the private student loan.
If can if you would like to apply for federal education loan then there is nothing much to worry about the credit scores. On the other hand, if you are planning to apply for education loan from the private bank, in this case, credit score holds a prominent place.
There are certain financial requirements that you have to fulfill to get your private student loan approved. Here are the following factors:
Applying for an education loan from a private bank is quite tricky. Try to maintain your credit score between from 700 to 800 and above. The higher the credit score, the higher the chances for loan approval. Besides this, you might also get entitled to access the lowest interest rates.
Do not let your credit score go below 600. You can do this by ensuring timely payment of the previous loan if any, showing proof of steady income and many other factors, which if you avoid may lead to low credit score.
Every financial institution has a different set of rules and education loan eligibility, when it comes to the time duration of loan sanctioning. Generally, student finance takes around 6 weeks to process after your application.
This duration is subjective, it all depends on the completion of formalities. The loan gets sanctioned as soon as the bank formalities get completed.
Tuition fee loan:
It can be sanctioned to only the full-time student so that the tuition fee of college can be covered.
This kind of loan is sanctioned to students to meet the basic requirements including accommodation, utility bills, food, etc.
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