Eligibility required for student loans
As these loans are given to deserving students and those who are unable to cover the cost of their graduate studies, the eligibility of the student loan is academic achievement and student achievement. In other words, applicants’ eligibility is measured on the basis of their academic performance, as applied in the initial study scoring sheets. The basic education loan eligibility requirements that applicants must meet to obtain loan approval are mentioned here:
- He or she must be a resident of India
- In India or abroad, he must have verified his admission to approved educational institutions.
- He must have a minimum age of 18 years within the limit of 35 years when applying for a loan.
- Students in full-time programs must have a parent / guardian or spouse / step-parent co-applicant in the case of married applicants.
Documents required for student loans
The documentation of the student loan does not require any physical document, as stated previously. The process is quick and can be done electronically without asking banks for physical visits. The method may vary, however, depending on the conditions set by the different banks or lending organizations. In addition, the banks being very strict in their remarks, failure to comply with the necessary documents will lead to the refusal of the loan:
- Completed application form
- 2 passport size photos
- Aadhaar / PAN card of the student and his parents or guardians.
- Proof of age: Aadhaar card, voter card, passport, driver’s license
- Proof of identity: voter card, Aadhaar card, driver’s license, passport
- Proof of residence: student’s bank statement for the last 6 months, copy of ration card and utility bills, rental contract
- Proof of income: Form 16 from parent, guardian or co-borrower, payslips for the last 3 months, updated bank statement or booklet for the last 6 months of the borrower, recent ITR.
Student loan interest rates
The cheapest loans are offered by the Union Bank of India, starting at 6.8%, under the umbrella of the Central Bank of India. On student loans of Rs 20 lakh with a repayment period of seven years, the Central Bank of India offers an interest rate of 6.85%. Education loan rates from India’s largest lender, the State Bank of India, are a bit higher, at 6.9%. Banks are ranked on the basis of ascending interest rates, i.e. banks with the lowest interest rate on student loans (up to Rs 20 lakh) are placed at the top and the highest at the end. The table considers the lowest rate offered by banks on loans up to Rs 20 lakh.
|No Sr.||Banks||ROI in% pa|
|1||Union Bank of India||6.80|
|2||Central Bank of India||6.85|
|3||Bank of India||6.85|
|5||National Bank of Punjab||6.90|
|9||Bank of Maharashtra||7.05|