Table of Contents
What is the salary for co-applicant for education loan?
Individuals earning at least INR 30,000 per month are considered eligible to be named as education loan co-applicants. Lenders do consider individuals who earn lesser monthly salaries as education loan co-applicants. However, INR 30,000 is the recommended minimum monthly salary.
Can banks reject education loans?
Yes, an education loan request can be rejected if the borrower doesn’t satisfy the conditions put forth by the lender. The conditions can be academic, economic or any other. If the institute in which you want to get admission doesn’t have a good placement record, banks won’t show interest in lending you.
Is cosigner and co-applicant the same?
A co-applicant differs from a co-signer or guarantor in terms of their rights associated with the loan. A co-signer may be used to help a primary applicant receive more favorable loan terms. However, they are generally not given access to the funds or associated with the collateral involved.
Can a friend be a co borrower for education loan?
Most lenders of education loan policies in India state that only a parent or a close relative may be listed as an education loan co-applicant. Although, a few of them also mention providing an education loan without a co-applicant.
What is the liability of co-applicant?
What is the liability of a co-applicant? A co-applicant need not be a co-owner of the property. However, a co-applicant is equally liable as a primary applicant to pay back the loan. In case of a default by the primary applicant, the bank is well within its limits to recover the loan from the co-applicant.
Do NBFCs require margin money for education loans?
However, some banks may ask you to shell out margin money. This is usually up to 5\% of the loan amount for studies within India and up to 15\% of loan amount for courses abroad. Most NBFCs provide 100\% funding, so you needn’t be concerned about margin money. Banks provide Education Loans on the basis of joint borrowers only.
When do education loan EMIS start?
Education Loan EMIs start only once you’re done with your course and start working. The key to getting the perfect Education Loan is adequate research. A number of banks and non-banking finance companies (NBFCs) offer Education Loans. Each of these loans comes with different features and conditions.
What is the interest rate on an education loan?
The yearly MCLR for most banks today is 8.5\%, so you can expect the interest rate on your Education Loan to be anywhere between 8.5\% and 11\%. However, in some cases, the interest rate can be higher depending on the chosen loan amount, the course and the institution.