Increase Your Chances of Education Loan Approval

A dream for many Indian students is to pursue higher education at top universities abroad. However, with the rising cost of education, it has become a challenging task. This is when Education loans step in and make the higher education dream a reality. Yet, for some reason, many students face loan rejections.

In this blog, we will explain how to enhance their chances of education loan so that you do not miss out on any chances of getting an education loan.

1. Doing Proper Research Can Boost Your Chances of Education Loan Approval

• Thorough research is mandatory for students before applying for an education loan. Students generally rush into applying for education loans without doing the basic research. Oftentimes, this may lead to loan rejection.
• Research indeed makes many things clear. Students get to understand what the Dos and Don'ts are.
• Proper research on interest rates, available lenders, and how the education loan process works is important for a successful education loan application.
• This process keeps them ready with all the essentials for a loan.
• That is why research plays a significant role in increasing your chances of getting an education role.

2. Understanding Loan Requirements Can Improve Your Loan Approval Chances

• It is essential to understand the requirements for an education loan before moving forward with the application process.
• Each lender has a different set of eligibility criteria and approval conditions, whether it is a public bank, private bank, or any NBFC.
• Understanding the loan requirements can boost the chances of getting an education loan.
• Students have to be aware that after meeting all the eligibility criteria then only lenders issue educational loans.
• Lenders consider various parameters such as co-applicant financial status, CIBIL score, and repayment capacity, etc, before issuing an education loan.

3. A Strong Co-Applicant Can Boost Your Loan Approval

• A co-applicant can make or break your education loan.
• A co-applicant is required for many of the education loans who shares equal responsibility for repaying the loan.
• A good co-applicant strengthens the student's profile.
• A co-applicant with good credit history and a consistent income source can enhance the loan approval chances.
• Generally, parents, siblings, spouse, parents-in-law, and first cousins are eligible to be co-applicants.

4. Strong Academics Help You Get Education Loan Approval

• When planning for an education loan, it is highly recommended that students have a solid academic record.
• The better the academic score, the higher the chances of loan approval. This is one of the key metrics that lenders check before offering education loans.
• A consistent academic performance in all academic years, such as 10th, 12th, and undergraduate, can enhance the chances of loan approval.
• A minimum of 60% is required by all lenders to be eligible for an education loan.
• This also demonstrates the student's ability to complete higher education for which the loan is being applied.

5. The Right Documents Can Speed Up Your Loan Approval

• This is one of the aspects that often causes delays or even rejection of education loans.
• Proper documentation is essential for a successful loan process.
• The requirement changes depending on various factors such as the lender, the course type, the kind of loan that the student is applying for, etc.
• Lenders meticulously look into every document that is required to approve an education loan. They highly depend on the paperwork to assess the eligibility of the student.
• A pre-prep can save a lot of time and make the loan process stress-free.

6. Compare Lenders Before Applying For an Education Loan

• This is important that students have to make sure that they get the best deal in the loan market. 
• Compare all the available lenders with various parameters and choose which suits you best. Not all educational loans are offered the same way by all lenders.
• The interest rate, repayment terms, eligibility conditions, processing fees, etc., vary from lender to lender.
• Even a single percentage difference in the interest rate can save a lot of money for students. This significantly impacts the loan tenure as well.
• It is suggested to read reviews and testimonials before proceeding further with the education loans.
• Take time to compare the lenders with the flexibility of repayment terms, affordability with interest rates, etc. This indeed reduces a lot of pressure on students.

7. A Good Credit Score Can Boost Your Loan Approval Chances

• A good credit score enhances the chances of loan approval, especially for unsecured education loans.
• This is one of the important parameters that lenders assess to determine eligibility before issuing education loans.
• Loan applications are often rejected due to the credit scores of both the applicant and the co-applicant.
• A good credit history determines the repayment credibility of the student.
• Private lenders often consider this factor to approving education loans.
• The better the credit score, the higher the chances of loan approval.
• A credit score of 700 or above is preferred by banks for loan approval.
• However, some lenders even consider a minimum of 650 to issue loans, which is again influenced by various other factors.

8. Pick the Right University and Course to Boost Loan Approval

• This can significantly impact education loan chances. Lenders have a specific list of universities that are categorized based on certain parameters.
• Choosing colleges from this list can incredibly increase the loan approval chances.
• One of the factors for listing colleges is the employment opportunities, which ensure that the student has the repayment capacity for the education loan.
• Choosing a set of courses for higher education doubles the chances of an education loan.
• STEM courses have a high chance of loan approval.
• The employment opportunities associated with these courses are high due to their global demand.
• This gives the lenders the confidence of loan repayment. Thus, choosing STEM courses has a high chance of loan approval.

Apply via WeMakeScholars

An education loan sanction is important for funding the education of many students. However, students often struggle to get their loans sanctioned without the right guidance. WeMakeScholars helps you in such situations. Our team is dedicated to assisting students in receiving education loan approvals on time.

Wemakescholars is a government-backed education start-up, funded by the Ministry of IT under the Digital India Campaign. Here is the step-by-step process of applying through Wemakescholars.

• Step 1: Visit the WemakeScholars website and fill out the education loan eligibility form or simply request a callback.
• Step 2: A dedicated financial officer will reach out to you and walk you through the process.
• Step 3: Provide all the necessary information required by the financial officer.
• Step 4: Our experienced financial officer would then analyze your complete profile based on the complete details provided by you, and then connect you with the best suitable lender and send you the document uploading link for further processing.
• Step 5: Upload all the necessary documents using the document uploading link. Your financial officer will take care of the rest of the process and will update you on the same.

Required Eligibility Criteria to Get an Education Loan

Generally, the eligibility criteria are influenced by various factors such as the lender, student profile, university, etc. However, the basic eligibility for any loan approval is given below.

• Citizenship: The applicant and co-applicant are required to be indian citizens.
• Age: Students typically aged between 16 and 35 are eligible for an education loan.
• Co-Applicant: A co-applicant is mandatory for most of the education loans.
• Course: The selection of a course can significantly impact the chances of an education loan. Choosing STEM courses has a high chance of an education loan approval.
• Admission: Students must secure admission from a recognised university.
• Collateral Requirement: If the student is choosing a secured education loan, collateral is required to be pledged.
• Academic Profile:  An average of 60% in all grades is generally recommended for students for a better loan process.

Documents Required for an Education Loan

Below are the basic documents required for an education loan.

1. KYC Documents: Documents proving the identity of the applicant and co-applicant, such as
   • Aadhar card, driving license, etc.
   • PAN card
   • Passport
2. Admission letter: An admission letter from a recognized university as proof of admission.
3. Academic Records: Students are required to submit the required academic records, such as 10th-grade, 12th-grade, and graduate certificates, if applicable.
4. Collateral Documents: If the student is applying for a secured/collateral loan, all the legal and valid documents required by the lender are to be submitted.

Apart from the above documents, any additional documents as per the request of the lender are to be submitted.

Conclusion

Education loans are an incredible source of funding for students' higher education. However, for some reason, many loans would get rejected. In this blog, we have explored the chances of improving an education loan.

Applying for Education loans through WeMakeScholars can ensure fast loan approvals. We have a team of dedicated financial officers who support throughout the loan process. Our financial officers will provide end-to-end support and make your education loan process hassle-free.