Education Loan Eligibility

Check if you are eligible for student loan from UniCreds

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Education Loan Eligibility

Calculate the eligibility for your student loan with this basic calculator. It will assist you in calculating the amount for which you are eligible. You will have your loan application rejected if you apply for an amount greater than you are eligible for. Your valuable time and money will be lost, plus you will have no idea of the exact sum you should apply for.

Documents Required For Education Loans

Identity-Related Documents Required From Both Applicant And Co-Applicant

KYC Documents:

  • PAN card 
  • Driving License 
  • Aadhar Card

Address Proof:

  • Aadhar Card 
  • Valid water/electricity/ LPG bill
  • Voter’s ID card 
  • Current House lease agreement 
  • Valid passport 

Documents Related To The Academic Record Of The Applicant:

  • 10th Result
  • 12th Result
  • Under Graduate Result Semester Wise (If required)
  • Entrance Exam Result - Abroad institutes (GRE, GMAT, TOEFL, etc.)
  • Entrance Exam Result- Domestic institutes (CAT, CET, GMAT, CMAT, JEE, NEET, GRE, etc.)
  • Proof of Admission 

Collateral Related Documents

Common Documents:

  • Title deed & Sales Deed
  • Registration receipt
  • Allotment letter
  • Chain deed of 30 years
  • Tax copy or electricity bill
  • Government-approved building plan
  • OC and Completion Certificate (if the property is constructed)

Eligible Courses For Education Loans

Typically, the educational loan is available for all courses offered by various institutes that are recognized by the respective governing bodies. These loans are available for various undergraduate programs, postgraduate programs & doctoral programs and also for special diploma courses. These loans are also accessible for specialized courses & training depending on each lender’s policies. Thus it is possible that one lender may offer a loan for one course while another may not. The general list below gives the names of few courses for which loans are available:

  • Medicine, Management & Engineering
  • Agri Diploma
  • Medical Veterinary Diploma
  • Teacher Training Courses
  • Nursing Courses
  • Computer studies
  • Data Entry Operator Course
  • Diploma/Degree Courses In Areas Of Aeronautics, Shipping, Pilot Training.
  • Vocational courses that are offered by a Government organization or department, State Skill Missions, State Skill Corporations etc.

Ways To Improve Education Loan Eligibility

Evaluate All Course-Related Expenses

Before taking a final decision on the education loan, evaluate how much the course will cost inclusive of everything – cost of living, tuition fees, uniform, course equipment costs etc. Check availability of financial aids and factor in family contribution, if applicable to arrive at the required loan amount.

Check Available Financial Aids

Before opting for an education loan, ensure you check all financial aids (grants, scholarships, etc.) that you qualify for. These offer great financial support and do not have to be repaid unlike your education loan.

Check Options - Approved Courses And Colleges

Lenders usually have a list of approved courses and colleges that they allow a student to borrow an education loan for. In case your specific college or course does not feature in your prospective borrower’s list, you have the option of looking for another borrower that is better suited to your requirement.

Need For A Guarantor Or Collateral

An education loan features the student as the primary borrower. However, the student’s parent or guardian needs to be a cosigner for the loan.In case of a married student, the spouse can also co-sign his/her education loan. In case of loan amounts higher than Rs. 4 lakhs, bank acceptable collateral such as fixed deposits, LIC policy, etc. will have to be provided by the student.

Tax Benefits

Section 80E of the Income Tax Act offers tax benefits on the interest paid on education loans. Also, the tax deductions are available for initial assessment years and seven years post that, or until all the interest is paid off, whichever is earlier. This makes the maximum tax deduction period applicable to a home loan at eight years. Therefore, even if you opt for a longer loan tenure, you qualify for the tax benefit only for the initial eight years after taking the loan.

Effect On Tenure On The Education Loan

Some borrowers take loans for a longer tenure only because of the lower EMIs it entails. However, doing so increases the total interest payable on the loan. If you foresee good prospects of a well-paying job after your course, it is better to opt for shorter loan tenure. Although this would mean slightly higher EMIs, your loan will be less expensive and you will be done with the repayment quicker. However, when making this decision, ensure that you strike a balance between your repayment capacity and the shorter tenure.

Why Use Our Tool?

UniCreds allows you in a matter of seconds to grasp your eligibility for student loans! Until applying, use our education loan eligibility calculator as a guide to help you find the amount you are eligible for and other general conditions according to your eligibility. Based on your personal/employment/income information and that of the co-applicant, the education loan eligibility calculator assists in getting the approximate loan amount you are eligible to borrow from the bank or NBFC. The calculator takes a few simple pieces of information into consideration and calculates the sum that the bank and NBFC will borrow from you. Getting a good idea of how much you can borrow is the reason why you need to use the eligibility factor.

Student loan eligibility or "educational loan eligibility" varies on the basis of monthly commitment and monthly income from person to person. This student loan eligibility calculator is for you if you are wondering what amount you will get as an education loan. This calculator is designed to keep the eligibility of student loans in India in mind so that before applying for the loan, you know the maximum amount you can receive.Fill in the time periods and interest rate to get the sum you can get as an education loan if you want to verify your education loan eligibility. This Education Loan Calculator for your independent use is made available to you as a self-help tool. We do not guarantee its reliability or applicability to your conditions. The aim of this tool is not to provide investment, legal, tax, or accounting advice. The statistics are for illustrative purposes only and are symbolic. For personalized review, supplementary information or guidance, we invite you to consult UniCreds.