Aspiring our dreams and choosing the right kind of education is what every young individual thinks of. Everyone is more keen and aware about the importance of education in today’s world. But for everyone it is not possible to achieve his dreams looking at the increasing educational costs.

So, here an educational loan comes into picture. Banks and NBFCs are extending these helpful and valuable loans to student for fulfilling their dreams and get the right kind of education. Student can apply for educational loans. But before applying certain factors are to be checked such as eligibility factors, documentation, rates, etc. In educational loans co applicant is must. Co applicant can be salaried, self employed or firm and companies.

In educational loans if you are clubbing firm or company as a co applicant then, following are the eligibility factors for firms and companied as co applicants-

1. Profile

Student applying for educational loans should be resident of India. He should be pursuing education currently.

2. Age

Applicant should be minimum 18 years and maximum 26 years while applying for loans. This range of age varies from one bank to another.

3. Academic track record

Applicant should have a good and clean academic track record. By this we mean that he should have cleared all his education till date in first class, without any gaps. Discontinuation in education is not considered. This will affect the eligibility of the applicant.

4. Course and university opted for

Applicant should apply for further studies in a recognised university and the course he or she is planning to pursue should also be an approved course. This factor is to be checked prior to the application of educational loans.

5. Co Applicants profile

Co applicant usually in educational loans is parent, guardian, sibling or relative. For eg, if parent is taken as co app. He is owing a firm or a company then following factors are checked before deciding the loan amount .

6. Age of the firm

Firm should be at least 5 years old. It should in business for at least past 5 years showing profit for minimum last 3 years in continuity.

7. Repayment capacity

The quantum of loan amount mainly depends on the repayment capacity of the company. Company’s profit and loss account is thoroughly checked before sanctioning the loan. Its monthly income and expenditure is taken into account. The remaining amount is considered as the repayment capacity of the firm or company. Based on this amount the loan amount to be sanctioned is decided.

8. Stability and continuity of Income

Mostly banks considered the source of income for the past 2 years to 5 years while calculating the eligibility of the firm. Stability and continuity of income is must. These factors should be as per the banks norm only then the loan is sanction to the firm. The income requirements can vary depending on banks, normally net income of the concern should be more than Rs. 200,000 per annum for loan amount up to 4 lacs. If the loan amount is above 4 lacs then the net income should be around 5 lacs p.a. depending on the loan amount.

9. Assets

All the assets are taken into consideration which deciding the loan eligibility of the firm.

10. Liabilities

All the liabilities are also taken into account while deciding the eligibility of the firm. The more the liability the less is your eligibility. There is a direct ratio between the two factors.

11. Past track record

Company should hold a good track record if any. Company should have a good market reputation and should be very fair and clear in all his monetary transactions.

Check Your Eligibility

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