A pre-approved education loan is an education loan approved by banks to customers based on their repayment history and account cash flow. These are instant loans given by banks/Non-Banking Financial Institutions to customers with excellent creditworthiness and have repaid their previous loans on time. A pre-approved loan process involves minimal documentation and it is usually processed within a few days from the date of application.
Pre-Approved Education Loan - Benefits and Advantages
- The applicant will get to know the exact loan amount he/she will get based on his/her credit score.
- Minimal loan processing time if the applicant submits all the necessary documents on time.
- No unnecessary lags/breaks in the admission process or while pursuing the course since the student will get the loan sanction letter beforehand
- Online Application - Students can apply for a pre-approved loan from the lender’s website/mobile application etc.
- Easy Repayments - Loan amount can be paid back at competitive interest rates over a span of 12 months to 60 or 72 months in the form of Equated Monthly Installments (EMIs).
Pre-Approved Education Loan - Eligibility Conditions
Eligibility conditions for pre-approved education loans are more stringent than for usual loans. Lenders give pre-approved loans only for select customers who maintain a clean balance sheet and repayment history. Some of the eligibility criteria include
- Better credit score - Strong credit history and sound repayment record of previous loans
- Maintaining funds more than what is required under minimum balance
- Strong debt-income ratio - Customers with a regular and stable income source have better chances of securing a pre-approved loan
Pre-Approved Education Loan- How to Apply
- Apply in person - Applicants can directly head over to the lender’s office and apply for a pre-approved education loan. In case of banks, many banks offer these loans if your credit score is good and debt-to-icnome ratio is optimal. Many NBFCs also give pre-approved loans but at a higher rate of interest.
- Apply Online - An applicant can also apply for a pre-approved education loan directly from the lender’s website/mobile application. You can fill the required forms and attach the necessary documents and get the loan sanctioned in a few hours.
By phone call - Some lenders also offer these services to select customers. Customers can call the mobile number of the local branch office and fix a meeting with the associate. The associate will then visit the customer’s place of choice and will process the loan application after verifying the essential information.