Education Loan Eligibility

While banks give concessional rates to some countries and STEM courses, NBFCs can also give non-collateral linked loans concerning university rankings. Government banks usually expect a minimum of 60% in academics while private banks may not expect a certain percentage of academics but they do prefer the academics to be good. There should be no backlogs, and any gaps in education should be explained especially for government banks. Thus, work experience results in improved loan conditions; however, test scores, especially GRE, can affect both loan volume and interest rates. A good rating on the CIBIL scale is important to be offered a good rate on the loan. Keep reading to know more about all the applicant's required eligibility criteria.

Country

Banks usually provide favorable loan terms to only a few countries where higher education is perfectly sought. For other countries, NBFCs(Non-banking financial companies) may offer non-collateral education loans with different lending policies and consider factors such as the university's ranking.

Course

The lenders may be more likely to offer non-collateral loans for education in science, technology, engineering, and mathematics (STEM) fields. These fields are often in high demand and may be considered more likely to lead to high-paying jobs after graduation. However, it's important to note that non-collateral loans may still be available for other fields of study, such as law, management, fashion, tourism, and aviation, although they may be more difficult to obtain. In these cases, secured loans may be a more viable option. 

The chances of loan rejections can be reduced with a little help from a professional so, they can suggest a much better product for your profile.To get professional help at absolutely no cost visit WeMakeScholars and request for a callback. 

Percentage

It is generally accepted that government banks, such as the State Bank of India, Canara Bank, Punjab National Bank, and Bank of Baroda, prefer a minimum of 60% in all academic levels (10th, 12th, and degree). However, it is possible to secure an education loan with a lower percentage through special approvals, as WeMakeScholars has demonstrated in the past. 

On the other hand, private banks and non-banking financial companies may not have a specific percentage requirement, but tend to prefer applicants with strong academic records. If you are seeking guidance on choosing the right education loan, you can request a callback by visiting WeMakeScholars.

Backlogs

Government banks typically require applicants to have no more than three backlogs or outstanding course requirements, and expect these to be cleared within the specified duration of the degree program. For example, if an applicant is pursuing a 4-year bachelor's degree, all backlogs should be cleared within that time frame, and the final degree should be obtained within 4 years.Here, private banks and non-banking financial companies are also cautious about backlogs and may have similar requirements.

However, if an applicant has a larger number of backlogs or experiences delays in clearing them, you may still be able to secure an education loan by providing a genuine reason for the delays through WeMakeScholars by requesting a callback.

Degree Level

It is important to note that non-collateral education loans for bachelor's degree programs may be difficult to obtain, as many lenders only offer these types of loans for master's degree programs. If you are able to secure a non-collateral loan for a bachelor's degree, it may come with a higher interest rate or require that you begin making payments immediately. In such cases, it may be more beneficial to consider a collateralized loan, which does not have the same restrictions. However, it is always advisable to carefully research and compare your options before making a decision on the type of loan to pursue.

And WeMakeScholars can do all your research in your education loan application for absolutely free of cost, request a callback now and initiate your loan process now.

Gap in the Education

It is important to note that if you are applying for an education loan from a government bank, you may be required to provide an explanation for any gap in your education. This may include information about any work experience or other activities you were engaged in during this time. It is generally advisable to be transparent and provide a clear explanation for any gap in your education, as this can help to ensure that your loan application is processed smoothly.

However, it is also worth noting that private banks and non-banking financial companies may not place as much emphasis on gaps in education and may not require a letter of explanation. If you are facing any issues with your loan application, it may be helpful to reach out to a financial officer from WeMakeScholars for assistance.

Work experience 

It is generally true that work experience can be a factor in determining the terms of a loan, particularly for unsecured loans from non-bank financial institutions (NBFCs) and private banks. In these cases, a borrower's work experience may be considered as a measure of their financial stability and creditworthiness. This can potentially lead to more favorable loan terms, such as lower interest rates or larger loan amounts, for individuals with longer work histories. On the other hand, government banks may place less emphasis on work experience when considering loan applications.

In case if you're having more than three years of experience and earning more than 35,000 per month you’ll be eligible for a special product where you can completely eliminate the financial co-app as your profile makes up to the standard of reliability. Similarly each and every profile has its own uniqueness and that can make the lenders consider further benefits. To know about the product that is perfect for your profile, Simply request for a callback from WeMakeScholars.

Test Scores

It is generally advisable for students pursuing higher education in the United States to achieve a decent score on the IELTS or TOEFL exams. However, these scores are not necessarily the primary determinant of a student's success. Instead, the Graduate Record Examination (GRE) score may be more influential, particularly when seeking an unsecured loan from a non-banking financial company (NBFC). In this case, a higher GRE score may result in a higher loan amount and a lower rate of interest. It is worth noting that this may not be the case when applying for loans from government or public banks, as the rate of interest tends to be uniform across countries in these cases.

CIBIL Score

CIBIL score can be a significant factor in the lender's decision to approve or deny your application. A CIBIL score is a three-digit number that reflects an individual's creditworthiness and financial history. A higher CIBIL score indicates that an individual has a good credit history and is likely to make timely loan payments. On the other hand, a lower CIBIL score may indicate that an individual has a poor credit history and may be considered a higher risk to lenders. As a result, lenders may be more hesitant to approve a loan application from an individual with a low CIBIL score, or they may require a higher interest rate or collateral to compensate for the higher risk.In a scenario where your CIBIL score is effected and you wish not to pay a higher rate of interest, visit WeMakeScholars and request for a call back we’ll be able to bring in the best deal for your profile.