What is the eligibility to geta students loan for study in Canada or USA?Do I need something for Mortgage?

Before applying for an education loan the first crucial step is to check if you are eligible for a student loan. Here are a few common requirements you should check off your list before applying for an education loan.

Citizenship and Age Requirements 

The bare minimum and most important student loan eligibilities are the citizenship and age requirements. You must be a citizen of India and a minimum of 18 years of age and a maximum of 35 years of age to apply for a student loan in India to study abroad. If you are not 18 years of age, your parents will have to apply for a student loan.

Academic Qualifications 

If you want to apply for a student loan, you should have a good academic record right from your high school. Banks approve student loans of those candidates who have shown great academic achievements in their 10th, 12th and graduation. If you have a good academic record, the loan amount sanctioned to you will also meet your expectations. There is no minimum grade or percentage requirement imposed as student loan eligibility by the banks or education loan schemes. 

University Application

Another basic student loan eligibility is your university application status. You must be accepted in one of the top-ranking universities abroad or any recognised foreign university. This is a mandatory requirement for all Indian students who want to apply for a student loan. An offer letter with your acceptance from the university is required. 

Co-Applicant 

A co-applicant is the person who is responsible for your student loan if you, as a student who is the main applicant, fail to repay the student loan. Your parents, guardians, spouses and parent-in-law (if married) can become your co-applicant to fulfil this student loan eligibility. 

Collateral Security 

A student loan or any loan is granted against collateral security. Such education loans are known as secured student loans. Basically, if your expected loan amount exceeds INR 7 or 7.5 lakhs, you must provide collateral security. Types of collateral security that you can pledge or give against the student loan are-

Immovable property or assets like non-agricultural land, house, etc  

Intangible assets like mutual funds, fixed deposits, life insurance policies, etc 

Immovable assets or property of the third party (friends, relatives, etc)

Apart from the three types, the last one is very rarely accepted depending upon the student loan scheme. With collateral security, you can get a loan amount of INR 10.5 lakhs to INR 1.5 crores.