Now that your child has expressed their desire to pursue engineering, it’s time to work out the finances to make their dream a reality. Instead of sinking your teeth into your hard-earned savings, consider an education loan.
Financing your ward’s engineering education through a loan allows you to pay a hefty fee without drastically altering your lifestyle. Like the idea of applying for education finance? Here’s how you can fortify your loan application to improve your approval chances.
How to get education loan for engineering?
Whether a student wishes to pursue their engineering degree in India or abroad, here are the factors that improve the chances of getting a study loan.
Apply to renowned universities and colleges
Most lending institutions have a preferred list of colleges and universities in India and abroad. They also have a list of blacklisted institutions. Fortunately, the former list is bigger than the latter, and it includes several engineering colleges.
Therefore, it’s best to apply to recognized colleges. These don’t have to include only Ivy League institutes abroad or IITs and NITs in India. Any college with proper credentials and accreditations will do.
Furthermore, if your ward has managed to get through to a premium engineering college abroad, you can apply for a separate travel loan along with a study loan. Travel finance covers the entire cost of flight tickets and accommodation costs abroad.
Additional Read: Education Loan from NBFCs: Pros and Cons
Get the paperwork right in one go
Visit your lending institution’s website to finely understand their documentation requirement. It’s best to prepare a checklist of documents needed. Submitting incorrect or incomplete paperwork can lead to rejection. Most lenders ask for the following documents for a study loan:
- Student’s proof of identity like name, address, photographs, etc.
- Educational records such as class 10th and 12th mark sheets.
- Name of the institution where they have secured admission, along with their tuition structure.
- Proof of identity and income of the parent or guardian who will be taking the loan for their ward.
If you’ve already availed of a study loan but found that the amount cannot cover all expenses, you can opt for a personal loan separately. Lenders approve this loan for any end purpose without demanding collateral.
Keep a check on your CIBIL score
Your CIBIL or credit score is a rating provided by CIBIL on a scale of 300 to 900 points. The higher your credit rating, the better your chances of securing affordable interest rates. This number is especially critical if you’re not pledging any collateral when taking a personal or study loan for engineering.
So, before applying, check your credit score by visiting the official CIBIL site. With a high score, you can get approved for finance at affordable personal loan interest rates.
Additional Read: How long does it take to get a Student Visa to Canada?
Looking to apply for travel, personal or study loan? Your search ends at Tata Capital. We offer study, travel and personal finance at affordable interest rates with flexible repayment tenures and minimal documentation.
So, why hold off on funding your child’s dream of becoming an engineer? Visit our website, use our personal loan EMI calculator, and fill out our online loan application form today!