EDUCATION LOAN FOR ENGINEERING STUDENTS IN KARNATAKA

Education Loan for Engineering Students in Karnataka

Education Loan for Engineering Students in Karnataka

Blog Article

Co-Applicant Rules for Engineering Education Loans in Karnataka

Introduction
Pursuing an engineering degree in Karnataka, home to prestigious institutions like RVCE, BMSCE, and MSRIT, often requires financial assistance due to the rising cost of tuition, hostel, and related expenses. Education Loan for Engineering Students in Karnataka offer a practical solution, but almost every lender in India, including those in Karnataka, mandates a co-applicant for disbursing student loans.

Who is a Co-Applicant?

Banks insist on a co-applicant to reduce the risk since most students don’t have income at the time of loan approval.

Who Can Be a Co-Applicant?


In Karnataka, for most banks and Education Loan for Engineering Students in Karnataka schemes, the co-applicant must be:

  • A parent (father or mother – most preferred)

  • A close relative (in some cases: elder sibling, uncle/aunt)

  • A spouse (rare for engineering students, but applicable in some cases)


Banks usually do not accept friends or distant relatives as co-applicants.

Financial Rules for Co-Applicants


 

  • Regular Source of Income:


 



      • Salaried or self-employed individuals are preferred.

      • For salaried persons: minimum 2–3 years of stable job experience




 

  • For self-employed: consistent business income with ITRs



  • Good Credit History:


 



      • Co-applicant’s CIBIL score matters (ideally 700+)

      • Past loan defaults can affect your education loan approval.




 

  • Income Proof Requirement:


 



      • Salary slips or ITR for the last 2–3 years

      • Bank account statements

      • Form 16 (if a salaried government employee)




 

  • Income Limit:


 


    • No strict cap, but higher income improves chances of approval.

    • For Arivu Loan (KMDC), family income should be below ₹2.5 lakh per year.



Co-Applicant Documents Required




    • Aadhaar card

    • PAN card

    • Salary slips or income certificates

    • IT return (for self-employed)

    • Employment ID or proof of business

    • Bank statements (last 6 months)



 

  • Recent copyright-size photographs


 

Special Case: Co-Applicant in Government Schemes (Arivu by KMDC)



  • Must be a parent or guardian from a minority community

  • Must submit a valid income certificate and minority proof

  • Collateral is not required, but co-applicant documentation is mandatory.

  • No CIBIL requirement in most cases, but overall financial background is assessed.


What Are the Co-Applicant’s Responsibilities?




    • Required to sign the loan agreement and provide consent

    • Can be contacted by the bank during the repayment period



 

  • Acts as a financial backup for the student


 

Conclusion
A co-applicant plays a crucial role in securing an Education Loan for Engineering Students in Karnataka. Whether applying through a nationalized bank like SBI, a cooperative like Karnataka Apex Bank, or a state scheme like Arivu, the financial stability, documentation, and credibility of your co-applicant can directly influence your loan approval.

Choosing a financially stable parent or guardian, ensuring their credit profile is clean, and preparing the necessary documents in advance will ensure a smooth application process. With the right co-applicant, students can confidently access the financial support needed to pursue their dream of becoming engineers.

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