Getting a education loan to go foreign is a big responsibility that you have on your shoulders
and there are various factors involved. One of them is a co-applicant. In education loans, a co-
applicant often plays an important role and this may be the reason why applicants find it
difficult to get education loans from reputable financial lenders.
Joint Applicant: In an education loan, a co-applicant is an additional person who has a secure
financial file and signs an agreement of education loan with the loan borrower. If the loan
applicant unable to repay the education loan due to any uncircumcised, the financial
institutions will return only to the participating applicant. A co-applicant is often referred to as
a co-borrower or co-signer.
Eligibility Criteria for the Participating Applicant/co-applicants:-
Co-applicants are divided into two broad categories, Basic Co-Applicants and Financial Co-
Applicants. Let's understand the eligibility criteria for both.
Primary co-applicant: Primary applicant is sent to students or their parents regardless of their
financial profile. Students can place their parents who are retired or have no stable income as
the primary co-applicant for a study loan.
Joint Finance Applicant: A joint applicant is a person who is connected by blood to the loan
borrowers. They can be a cousins, siblings, aunts, uncles or aunts. A financial applicant is
required when students cannot designate individuals with a fixed income as primary applicants
for study abroad student loans.
Important Parameters for the co-applicant’s Eligibility Criteria:
Income Level: An individual's annual income is considered when making a foreign loan. In case
of co-applicant, one should have minimum INR 30,000 per month excluding any other debts.
Proof of Income: It is important that the participating applicant submits the last six months of
payslips reflecting current payroll transactions. If a person owns a business, he or she must
submit the following documents to prove income.
• GST registration confirmation
• Supplier fees
• Financial statements of business accounts for the last six months
• Statement of profit or loss of the business
CIBIL Score: CIBIL Score is a term that refers to a benchmark credit score given to individuals
based on their past financial performance. The lenders will evaluate the CIBIL score of the co-
applicant before proceeding with the foreign education loan. To get sanction the good CIBIL
score is 685 and above.
IT return document: Income tax return document is an important required documents in the
process of education loan. Financial lending institutions including banks and NBFCs are drastic
on IT returns. To get an unsecured education loan, ITR filing is required.