We are living in an era of education and growth. Therefore, there is a high priority over completing certain educational courses. But, when it comes to education, the cost of achieving them is quite high in certain cases. Therefore, many individuals drop the idea of approaching any further. However, there is always an option for a student loan to continue education. Well, when it comes to educational loans or student loans, all the students need to fall under the eligibility criteria to qualify for the loan. Moreover, they need proper knowledge about every little aspect of student loans. The following article goes through certain criteria of a student loan.
What is a student loan?
A student loan is also called an educational loan, where the students or any individual issue a loan to complete their educational courses. In order to pressure higher education, the student can opt for this loan, which can be played in easy instalments. However, there will be certain interests applicable over the amount that is issued for the course. Moreover, there are certain options and privileges provided to the student to choose certain plans for repayment. This student loan covers the tuition fees along with the examination and accommodation fees.
There are certain policies and conditions that are applied to the students that need to be met in order to fall under the qualifying criteria for getting a loan. Some of the eligibility criteria for the student loan are as follows:
- The age of the student must range from 16 to that 35 years.
- Moreover, the student needs to provide collateral security in the case where the loan amount exceeds certain criteria.
- An induvial must be a co-applicant along with the student.
- When it comes to the co-applicant, they must have a minimum salary in such a condition where the repayment of the loan will not be an issue.
- The loan will be approved only if the student has a secured admission guarantee or an offer letter from a respective university.
When it comes to issuing a loan, there is a need to verify the documents of the students to assure the authenticity of the students as well as prevent any kind of scam. Certain documents need to be submitted for background verification as well as identity verification. The list of such documents is as follows:
- Address proof is mandatory
- Proof of age is also required in an educational loan
- An identity proof which includes a passport, driving license, etc.
- Proof of the salary, i.e., income proof.
- Admission letter or the offer letter from the university.
- A bank statement of the co-applicant
When it comes to student loans or education loans, the students need to have proper knowledge of all the criteria and the mandatory policy for getting approval for the loan. Moreover, when it comes to educational loans, there is a necessity for a co-applicant as well as in several cases, there might be a requirement for collateral security.