How Much Education Loan Can I Get from NBFCs with My Co-applicant’s Salary of Rs. 20,000?

If you're considering an education loan from Non-Banking Financial Companies (NBFCs) and your co-applicant earns Rs. 20,000 per month, you might wonder about the amount you can secure. This article will delve into the factors that affect loan eligibility and provide insights into what you can expect.

Factors Affecting Loan Amount from NBFCs

The amount you can get from NBFCs for an education loan depends on several criteria. These include:

Your co-applicant's income Your educational background The course you plan to pursue The policies of the specific NBFC

Co-applicant’s Income

While a co-applicant earning Rs. 20,000 per month might limit the loan amount, many lenders prefer a co-applicant with a stable income of at least Rs. 30,000 to Rs. 50,000, depending on location and cost of living.

Loan Eligibility

Loan eligibility is often based on a percentage of the co-applicant's income. For instance, most lenders might offer loans up to 10-15 times the monthly income of the co-applicant. In your case, this might translate to a loan amount of around Rs. 200,000 to Rs. 300,000, but actual amounts can vary significantly.

Course and Institution

The type of course (undergraduate, postgraduate, etc.) and the reputation of the institution can also influence the loan amount. Prestigious institutions might allow for higher loan amounts due to their high value and potential earnings post-study.

Repayment Capacity

NBFCs evaluate the overall repayment capacity, including existing debts and other financial obligations. This ensures that the loan amount is within your repayment capabilities.

Credit Score

A good credit score of the co-applicant can positively influence the loan amount, demonstrating financial stability and reliability.

To get a more accurate estimate, it's advisable to consult specific NBFCs directly. They will provide details based on their lending criteria and your specific situation.

Alternative Financing Options: Prodigy Finance

Prodigy Finance offers a different approach to education financing, eliminating the need for collateral, co-signers, or guarantors. Instead, loan affordability is assessed on multiple variables, including university acceptance and post-study salary.

Eligibility Criteria at Prodigy Finance

International students Attending a supported school and program

Prodigy Finance currently supports the top 100 business schools globally, top 100 STEM programs in the US, select public policy, law, and health sciences programs.

For more information and to apply for a loan, visit their website.

Keywords: education loan, NBFCs, loan eligibility