How Much Education Loan Can I Get
How Much Education Loan Can I Get
Blog Article
The Contribution of a Co-Applicant to Your Loan Eligibility
Introduction
How Much Education Loan Can I Get? Since most Indian students do not make a living, financial institutions mainly rely on a co-applicant, generally a parent or guardian, when students apply for education loans.
This essay will examine how and why, particularly in the competitive loan market of 2025, the co-applicant's income, credit score, and financial stability significantly affect the loan amount, terms, and approval chances.
A Co-Applicant: Who Is It?
How Much Can I Get in an Education Loan? A co-applicant is someone who submits a loan application with the principal borrower (student) and is jointly liable for repayment under the law.
Typical co-applicants are mothers or fathers.
- Spouse or guardian
- Sibling or relative (particularly with NBFCs in certain situations)
How Your Loan Eligibility Is Increased by a Co-Applicant
- Revenue Assistance with Repayment
Lenders can have confidence in the responsible handling of EMI payments when there is a consistent and adequate income.
- Better Terms, Better CIBIL Score
Your chances of obtaining larger loan amounts with cheaper interest rates are increased when you have a co-applicant with a high credit score (700+) because it reassures the lender.
- Several Co-Applicants Increased Approval
Including a second co-applicant who earns income, such as both parents, raises household income and lowers lender risk.
- Support for Collateral
If your co-applicant can provide collateral, such as real estate or an FD, you could become qualified for loans up to ₹1 crore for overseas studies, or more than ₹20–₹30 lakh.
- Reduced NBFC Restrictions
Larger loans may be approved by more accommodating private lenders such as HDFC Credila, Avanse, or InCred if the co-applicant has a solid credit history, even in the absence of collateral.
A Sample Situation
- The parent of student B makes ₹25,000 a month and has no debts, yet their CIBIL is 650.
- Only ₹5–₹7 lakh may be obtained unsecured, while larger sums would need collateral.
How to Get the Most Out of Co-Applicant Benefits
- Select a co-applicant who has a great credit score and steady income.
- Make sure there aren't any other large loans or other liabilities.
- Have your PAN/Aadhaar, salary stubs, bank statements, and ITRs on hand.
- For better loan terms, think about including both parents as co-applicants.
- Before applying, pay off past due balances to raise your CIBIL score.
Conclusion
In 2025, a co-applicant's contribution to your student loan eligibility will be more crucial than ever. How Much Education Loan Can I Get? The co-applicant's profile frequently determines whether a loan is approved or denied, from providing financial support for the application to affecting approval amounts and interest rates.
Students can avoid missing out on their academic goals because of financial constraints by choosing the correct co-borrower, keeping their credit score high, and completing their documents ahead of time. This will allow them to acquire larger College loans with advantageous terms. Report this page