Eligibility Criteria

Education loan eligibility criteria can vary depending on the country of study, the lender, and the type of loan you’re applying for. However in a general overview the factors that often influence education loan eligibility are:

Age: Most lenders have a minimum and maximum age requirement for loan applicants. Typically, you need to be of legal age (18 or older) to apply for a loan.

Course/Program Eligibility: Education loans are often tied to specific educational programs or courses. Lenders may have a list of eligible institutions and programs that qualify for loans.

Admission Offer: Many lenders require proof of admission to an eligible educational institution before approving a loan application.

Academic Performance: Some lenders might consider your academic performance as part of the eligibility criteria. This could include factors like your high school or previous education grades.

Co-borrower or Guarantor: If you have limited credit history or income, some lenders might require a co-borrower or guarantor (usually a parent or guardian) who will share the responsibility of repaying the loan if you are unable to do so.

Credit History: Student’s as well as their co-borrower/guarantor’s credit history and credit score can play a significant role in determining your eligibility for an education loan. A good credit history can improve your chances of approval and may lead to more favorable loan terms.

Income/Financial Ability: Some lenders may consider your ability to repay the loan based on your income or your co-borrower’s income.

Loan Amount: The loan amount you’re requesting in relation to the cost of the program might affect your eligibility. Lenders may have specific limits on the loan amount they are willing to offer.

Collateral or Security: In some cases, lenders might require collateral or security against the loan, especially for larger loan amounts. This could be in the form of property, investments, or other valuable assets.

Documentation: You will likely need to provide various documents as part of your loan application, such as proof of identity, proof of admission, income documents, and more.

Documents Required to Apply for Education Loan

Documentation: You will likely need to provide various documents as part of your loan application, such as proof of identity, proof of admission, income documents, and more for both Student as well as the Guarantor or co-borrower.

• Student-Applicant
• Co-applicant/Guarantor
• Income Proof for Salaried Co-applicant/ Guarantor
• Income Proof for Self-employed Co-applicant/ Guarantor

Explore in detail by Visiting the Documents Required Page

Education Loan EMI Calculator

Using an Education Loan EMI (Equated Monthly Installment) calculator can help you estimate your monthly loan repayment amount.

Follow these steps to use a Education Loan EMI calculator effectively:

• Enter Loan amount, interest rate, tenure.
• Click Calculate.
• View EMI, total interest, repayment.
• Adjust tenure if needed.
• Consider extra costs.
• Check budget compatibility.
• Confirm with the lender before finalizing.

How is Education Loan EMI Calculated?

Education Loan EMI (Equated Monthly Installment) is calculated using the following Compound Interest formula:

EMI = [P * r * (1 + r)^n] / [(1 + r)^n – 1]

Where:

EMI = Equated Monthly Installment

P = Loan principal amount

r = Monthly interest rate (Annual interest rate divided by 12, expressed as a decimal)

n = Loan tenure in months

How to Calculate the Educational Loans EMI?

To use an Education Loan EMI Calculator:

Input Loan Details: Enter the loan amount you plan to borrow, the applicable interest rate, and the repayment tenure (in months or years).

Calculate: Click the “Calculate” or “Calculate EMI” button to obtain the estimated monthly EMI amount.

View Results: The calculator will display the monthly EMI, as well as a breakup of the principal and interest components for each payment.

Consider Variations: You can experiment with different loan amounts, interest rates, and repayment tenures to see how they affect your EMI.

Assess Affordability: The calculated EMI can help you determine whether the repayment amount fits within your budget.

Plan Your Finances: Use the EMI calculation to plan your monthly finances and ensure timely repayment of the loan.