Student Loans - FAQ
Is a Student Loan visible on my credit report?
A Student Loan is a kind of debt, so it will be shown on your credit report, even if you are still a student and, therefore, you are still in deferment. Nevertheless, this situation will not influence your ability to get a loan for any other purpose not related to your education.
Who is eligible for a Student Loan?
There are many factors determining who qualifies for a Student Loan and they vary from bank to bank. The most important factor is for a student to have been admitted or at least qualified for college. Other criteria are the age range, usually between 16 and 26, good academic record and a fairly regular parents' income.
Can I use a Student Loan for a purpose other than college?
A Student Loan must be used only for educational purposes authorized by the financial institution which granted the loan.
What documentation has to be provided for a Student Loan?
The most important document required by the banks is a confirmation of being admitted to college or institute. The bank will also need an agreement with the student or their parents or guardians, a proof of residence, a proof of age, a resume of the student's academic performance and a proof of regular source of income of student's parents or guardians.
What is a holiday period?
Holiday period is a term used to describe the maximum time before the student starts repaying the borrowed amount of money in EMIs (Equated Monthly Installments). The holiday period usually ranges from six to twelve months. In case the student decides to start working right after his final examination, they will not be given a holiday period.