Do I Qualify for Student Loans: Everything You Need To Know

Do I Qualify for Student Loans: Everything You Need To Know

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“Education is not preparation for life; education is life itself,” said John Dewey, Education Reformist, Philosopher, and Psychologist. Education at all levels – primary, secondary, and higher – cannot be overstated in terms of not only improving cognitive abilities but also laying a solid foundation for a successful life.

Despite its importance and the growing number of aspirants each year, higher education is often regarded as a pipe dream that only a few of you can afford. Or so it used to be.

Data shows the country’s financial system disbursed education loans amounting to Rs 23,640 crore during 2021-22. Student loans have brought a huge relief to aspirants who can now pursue their dream courses and go to universities of their choice in India without fear of depleting their entire family’s savings. 

Unfortunately, traditional lending institutions have at times in the past rejected loan applications owing to eligibility criteria. When applying for student loans, non-academic factors such as parent’s low income or savings, their projected inability to repay the loan, lack of hard collateral security such as a house, and a few such liabilities can damage your credibility.

Eligibility Criteria for Student Loan

Indian public and private banks along with non banking financial companies have stepped in to provide financial assistance to students of all calibers to pursue their dream of studying in reputed colleges in India. However, there is a stringent eligibility criterion that has been laid down by these financial institutions and it is very important for you to satisfy them to be eligible for a student loan. 

  • Nationality: To be eligible for a student loan for higher studies, you must be an Indian citizen who has been accepted or is seeking admission to a college, university, or institute in India.
  • Courses: You must finish your high school education. Some banks will provide a student loan even before a student has been accepted to a university. The age limit for obtaining a loan is determined by the bank, NBFC, or financial institution.
  • Institutions: You should secure admission to an Indian institute to pursue higher or technical education through the appropriate selection process and clear the qualifying examination from a recognised institution in India.

Documents Required for availing of a Student Loan

  • Your mark sheets of 10th, 12th, graduation or any entrance exam given for the course
  • KYC documents
  • Admission Letter from an approved university/college
  • Fee Structure of the course
  • Co-applicant KYC and income proof documents

Also Read: What are the different types of student education loans available in India

How is Student Loan Eligibility Determined?

Eligibility for student loans will depend on whether you meet the explicit criteria. Your information will be used to determine your eligibility for the loan after you have submitted your application to the financial institution of your choice. It will then determine what types of loans you are eligible for and how much overall aid you are eligible for.

Eligibility for private student loans will depend on the lender. Each lender will evaluate your application based on a different set of criteria, but the following are the most important factors in determining your eligibility:

  • Credit score and credit history of the co-borrower
  • Income and debt of the co-borrower
  • Enrollment in the qualified educational institution

How to apply for a student loan online?

Before applying for an online student loan, you must first determine how much money you have and how much more you will need to borrow to meet your needs, taking into account tuition, boarding and lodging expenses, and so on. Thus, all potential expenses should be calculated precisely before taking out the loan.

Students can apply for loans either online or in-person at a branch. The online process is very easy. Follow the steps to apply today:

  1. Visit the website of your finance company and fill out the application form
  2. Enter your personal information and property details
  3. Share your/co-borrower’s income details to access a personalized offer
  4. After you submit your information, wait for an authorized person to contact you with additional loan processing instructions.

Taking out a student loan can certainly help you pay for your higher education. You can attend college without having to come up with the funds all at once if you borrow money to cover the cost of tuition, books, and other expenses. This can help to make a college education more accessible and affordable for many people. 

In conclusion, student loans are good debt because they are an investment in education that will pay off in the future. Taking out a loan for higher education from Varthana allows you to continue your studies at the universities of your choice. It contributes to the growth and development of the country and its citizens. 

Also, If you do decide to take out Varthana student loans, it’s important to borrow only what you need and to stay informed about your loan balance and repayment status. Because Varthana student loans are a long-term investment, it’s essential to be aware of the best options available to you to soar! Apply now


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