Note: The education loan information on this page is provided only for the information of the website users, digibank by DBS doesn’t offer this product at the moment.


Education Loan Eligibility

Are you eligible for an education loan? Our page has the answers on the eligibility criteria you must meet.

 

Education Loan Eligibility

Introduction

It is no secret that the cost of education is skyrocketing every year. College or university fees have increased significantly over the last ten years and are set to become steeper as the demand for quality higher education increases. This trend has affected students across the world, especially those who wish to study abroad.


But it isn’t the end of the road, especially for the latter, since financial institutions are stepping up to help deserving students fund their courses and dreams. Through educational loans, several banks and NBFCs provide the immediate financial support you need to continue your studies. These loans offer student-friendly features and easy repayment terms.


Pro Tip: Consider the interest rate, tenure, moratorium period and repayment terms while evaluating an education loan.

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Eligibility

Eligibility

While education loans are easily available, you have to fulfil certain criteria. Here are a few things banks and other financial institutions consider before deciding to approve your loan request -


Criterion

Eligibility

Nationality

Applicant must be an Indian citizen

Age

18-35 years

Academic record

Must be unblemished and excellent

Qualification

Must be pursuing a graduate / PG / PG diploma degree

Admission status

Must have secured admission in a recognised institute

Co-applicant (for a full-time course)

Parents / guardians with a stable income, good credit history

Security

Tangible / intangible collateral or guarantor (depending on loan amount / income source)


Pro tip: Do a background check on the university or college you wish to apply to. Other things being equal, choose a college with a good placement strategy. Banks check your career prospects before sanctioning a loan, so enrollingin an educational institution that helps with placements can work in your favour. You could join online alumni networks, or reach out to people via your peer network or on social media to learn more about the college or university.

Have you got your offer letter to attend a US University? Use digibank by DBS Remittance services to pay your fees conveniently.

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Frequently Asked Questions

An education loan provides tax benefits on the interest paid under Section 80E of the Income Tax Act. It also allows you to invest your savings instead of spending a sizeable chunk on your education. On the other hand, with an education loan, you will end up paying more than the sum you borrowed. Plus, EMIs can put stress on your cash flows. Consider these aspects before arriving at a decision.


Tuition and hostel fees are usually disbursed directly to the university. Other components of the loan, like lab equipment, travel expenses can be claimed by the applicant.


No, this is no longer a mandatory requirement. However, having an account with the bankmakes the sanctioning process easier since the bank is familiar with your financial history, assets and past transactions.

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