When it comes to borrowing an education loan in India, we are very picky and rightfully so. Borrowing an abroad education loan is definitely a major financial commitment, both on the side of the lender, as well as the borrower. It is for this very reason that education loan lenders have laid down certain education loan requirements. The previous articles on our blog list out many of the education loan requirements of some of the more famous lenders in India.

The focus of this article is more on the lines of providing information regarding the academic qualifications you may need to possess if you plan to fund your abroad studies with the help of an abroad education loan.  Before we try and understand the education loan requirements placed by lenders for students, here is a small glimpse of the different types of abroad education loans lent in India.

Education Loan Options In India: A Brief Overview

Education loans in India are divided into secured loans and unsecured loans, based on the need of collateral security. Secured education loans are provided by all major government banks on the basis of tangible collateral security. This tangible collateral security may involve either immovable property, liquid security or assets belonging to a third party. The criteria of eligibility for education loans set by government banks are more flexible as compared to those of NBFCS.  The criteria of education loan eligibility in India depends on the nature of the education loan being lent.

Unsecured education loans are basically education loans which do not involve any tangible collateral security. These loans are purely lent on the basis of a student’s merit, the ranking of their university and nature of the course chosen by them and their co-applicant’s financial records. Due to these reasons, the criteria of eligibility for education loans set by NBFCs are more stringent.

Both government banks, as well as NBFCs, consider certain factors of a candidate’s profile before setting the education loan eligibility criteria. These factors are mostly related to two different timelines, factors related to the past academic records and those related to the future, such as a student’s chances of getting employed post their course. Due to the different natures of these education loans, the education loan eligibility in India greatly depends on the kind of education loan lender chosen by you. Let us take a look at all of the education loan requirements for students and understand how they decide on the abroad education loan eligibility criteria.

Factor 1:  Percentage of Marks Scored In Their Entire Course of Studies

The percentage of marks scored by applicants is one of the most important factors which contribute to the criteria for education loan requirements set by most banks. Most government-run banks such as the Bank of Baroda, Canara Bank, PNB, etc. give due preference to students having more than 60% of marks in all of their qualifying exams in the past. As collateral is not involved in unsecured education loans, NBFCs have set a higher benchmark for academic scores for applicants to be able to meet the standards of the education loan requirements.

One of the biggest plus points of applying for abroad education loans through WeMakeScholars is that our financial team has been able to help students even with lower percentages qualify for abroad education loans with prominent government banks. So, if your percentage of marks do not meet the standards set by the lender, do get in touch with our financial team for the same.

Factor 2: No Backlogs in Academic Records

When students directly approach most government banks for an abroad education loan, many of the bank officials may state that students who have had more than three backlogs are not deemed to qualify for an education loan.

Ideally, it doesn’t matter as long as the student completes his/her course within a stipulated time frame. For example, a typical engineering course lasts for four years. If you have completed your course within that time frame despite having backlogs and wish to study abroad with the help of an education loan, you should not find it difficult to get an education loan.

It is still possible for you to get an education loan even if you were not able to complete your course within the right time frame if you apply through WeMakeScholars. However, this is based on the condition that you have a genuine explanation for this delay in course completion. So, if you happened to finish your B.Tech degree course in a span of 5 years instead of the regular 4 due to genuine reasons, do get in touch with our team for assistance regarding your education loan process.

Factor 3:  Gap Years/ Gap in Your Course Duration

Any gap in your academics or in the duration post that will have to be accounted for in order to prove your eligibility for education loan. The abroad education loan requirements set by most banks state that students are to explain any gap that may have occurred in the course of their studies or post that period, in a letter. For example, if you had graduated in 2017 and are planning to study abroad in 2020, you will be required to explain what you did in the three years from 2017 to 2019 in a letter. This is just one of the formalities which you may have to complete. Most bank officials do not bother to go into further details of such year gaps unless and until the time duration exceeds ten or fifteen years.

However, if you are facing problems in getting your education loan approved from your lenders due to this problem, do not hesitate to apply for an education loan with WeMakeScholars. Moving on, let us take a look at the education loan requirements placed by the various different lenders for students.

Education Loan Requirements of Prominent Lenders

All of the factors listed above play an important role in determining whether a candidate is fit to be provided with an education loan. However, knowing the exact list of education loan requirements placed by prominent lenders will only help enhance your knowledge and understanding of the process. Here are a few of the banks which lend abroad education loans to higher education aspirants and their education loan requirements.

SBI Education Loan Requirements For Students

• Students who wish to borrow an abroad education loan from SBI are to fulfill only the following education loan requirements:
• Student must be an Indian citizen
• Students must have been accepted for any of the courses approved by the bank.  An enrolment letter supporting this claim has to be submitted at the time of application.

Bank of Baroda Education Loan Requirements For Students

The Bank of Baroda offers abroad education loans under two different schemes. These schemes are aimed at two different categories of candidates who are likely to apply for an education loan. 

Before we elaborate on these Bank of Baroda education loan schemes, here are a few basic details of the eligible courses and countries for which the Bank of Baroda education loans are provided.

The Bank of Baroda eligibility criteria for the Baroda Scholar scheme:

1. Candidate should be an Indian Resident.
2. The Student should have secured admission into a university abroad.

The Bank of Baroda education loan eligibility criteria for the Baroda Executive Development Program.

1. Candidates should be Indian citizens.
2. The candidate should have secured admission into any Executive Development courses offered by premier institutions abroad.
3. The candidate should be gainfully employed and should be in gainful employment during the study course.

Punjab National Bank Education Loan Requirements For Students

In order to have a smooth abroad education loan process, it is extremely essential to have thorough knowledge about your lending bank’s eligibility requirements. Similar to many other nationalized banks functioning in India, a list of the Punjab National Bank education loan requirements has been laid down by the bank  for students and co-applicants alike. 

1. The candidate must be an Indian national.
2. The candidate must have secured admission to a university/college abroad on a merit basis.
3. The candidate must not exceed 35 years of age if they are employed professionals and they should not exceed 45 years of age if they are unemployed.

Canara Bank Education Loan Requirements For Students

The Canara Bank has not stated any particular eligibility criteria for loan applicants. The only eligibility criterion stated by Canara Bank for abroad education loan applicants is that they should be Indian citizens.

Incred Education Loan Requirements For Students

Incred finance has set certain Incred education loan requirements for students. An Incred education loan is only approved if a particular candidate meets any of the Incred education loan requirements set for both loan applicants as well as co-applicants. Candidates meeting the following requirements only are deemed as eligible to apply for an Incred education loan for abroad studies.

1. A Student should be at least 18 years of age.
2. A student should be a citizen of India.
3. A student should have secured admission into a university abroad.
4. The candidate should have passed the qualifying tests relevant to their higher education course abroad. (GRE, IELTS, TOEFL, GMAT, SAT,etc.)

Auxilo Education Loan Requirements For Students

Candidates need to meet certain Auxilo education loan eligibility criteria in order to qualify for an Auxilo unsecured loan. The same policy is applicable to their co-applicants as well. 

1. The candidate should be a citizen of India
2. The candidate should have completed 18 years of age.
3. The candidate should have passed all the relevant qualifying examinations such as IELTS, TOEFL, GMAT, GRE, etc.
4. The candidate should have secured admission into a university abroad.

Avanse Education Loan Requirements for Students

As is the case with the numerous NBFCs functioning in India, any student who wishes to borrow an unsecured education loan from Avanse has to meet certain eligibility criteria laid down for the same. Similarly, there is a separate set of eligibility criteria set for co-applicants. 

All loan applicants are required to adhere to the following Avanse education loan eligibility criteria in order to qualify for an unsecured education loan from Avanse Financial Services.

1. The candidate should be an Indian citizen.
2. The candidate should have completed 18 years of age.
3. The candidate should have secured admission for any of the courses mentioned in the above table in a reputed university/college abroad. They should possess an admission letter at the time of applying.
4. The candidate should have passed the necessary qualifications to study in universities abroad, such as GRE, GMAT, TOEFL, IELTS, etc.

ICICI Bank Education Loan Requirements For Students

1. The candidate should be an Indian citizen.
2. The candidate should have completed 18 years of age.
3. The candidate should have secured admission for any of the courses mentioned in the above table in a reputed university/college abroad. They should possess an admission letter at the time of applying.
4. The candidate should have passed the necessary qualifications to study in universities abroad, such as GRE, GMAT, TOEFL, IELTS, etc.

Axis Bank Education Loan Requirements For Students

1. The candidate should be a citizen of India. 
2. The candidate should have scored a minimum of 50% marks in their high school as well as their graduation course.
3. The candidate should have applied and secured admission into a reputed university/college abroad and must possess their college admission letter at the time of applying for an Axis Bank education loan.
4. The candidate should have secured admission for professional courses such as those belonging to the STEM category or management-related courses at graduate/post-graduate level.

With this point, we come to a conclusion of this article. If you have any further doubts about applying for an abroad education loan or about any other aspects of the process, get in touch with the WeMakeScholars team for guidance.

Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it’s at free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, China, France among others.