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title: 'Overseas Education Loan Eligibility Criteria for Co-Applicants: An Overview'

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# Overseas Education Loan Eligibility Criteria for Co-Applicants: An Overview
An overseas education loan can be the wind in the sails of students hoping to embark on a quest for higher education abroad. Students can apply for a secured or unsecured education loan to study in their preferred destination from any lender on the market. While each lender has different requirements to sanction a loan, many require the student to have a co-applicant. A co-applicant, also referred to as a co-borrower or co-signer, is someone who signs the overseas education loan agreement alongside the student. 
The co-applicant shares the responsibility for repaying the overseas education loan if the student fails to do so. Often, banks require co-applicants to have a steady income and strong financial profile so that the lender can entrust them with loan repayments. This article will walk aspirants through the overseas [education loan eligibility](https://www.elanloans.com/blogs/eligibility-criteria-for-study-abroad-education-loan) criteria for co-applicants to help them get more clarity about the concept. 

![Overseas Education Loan Eligibility Criteria for Co-Applicants An Overview](https://hackmd.io/_uploads/ByiNNtB7gx.png)


## Who Can Be an Overseas Education Loan Co-Applicant?
The specifications for co-applicants can change across lenders and study destinations. Most Nationalized Banks, Private Banks, and Non-Banking Financial Companies (NBFCs) prefer direct relatives such as parents, grandparents, or siblings. Sometimes, parents-in-law, guardians, and uncles or aunts are also acceptable, depending on the student’s family background.

However, many study destinations are broadening their overseas education loan eligibility criteria for co-applicants. The table below specifies the co-applicant requirements for each destination.

| Study Destination | Acceptable Co-Applicants for Overseas Education Loans |
| -------- | -------- |
| USA     | Any blood relative is accepted     |
|UK | Only parents are accepted; the guarantor can be any blood relative
Canada |Any blood relative is accepted
Australia |Only parents are accepted; blood relatives can be accepted with 30% sponsorship
New Zealand |Only parents are accepted
Ireland | Any blood relative is accepted
Asian Countries | Any blood relative is accepted
European Countries | Any blood relative is accepted

Students need to look up the exact requirements for their preferred study destination and decide on the [best education loan in india for study abroad](https://www.elanloans.com/blogs/choose-the-best-bank-to-fulfil-your-study-abroad-dreams) according to those requirements and their profiles. Next, we will explore the overseas education loan eligibility criteria for co-applicants. 

## Overseas Education Loan Eligibility Criteria for Co-Applicants
Students can choose between primary co-applicants and financial co-applicants. The primary co-applicant pertains to the student themselves as well as their parents. Depending on the lender’s policy, retiree parents or those without a stable income can also apply as a primary co-applicant. On the other hand, a financial co-applicant can be a relative like a sibling, uncle/aunt, or cousin. They can apply if the student cannot name a primary co-applicant with a stable income. 

Depending on the type of loan, each lender may have different parameters to accept someone as a co-applicant for an overseas education loan. Some of the requirements that lenders generally assess are mentioned below.

* The monthly income of the co-applicant must be at least INR 30,000 per month, excluding other liabilities. This figure may change based on the total loan amount.
* Proof of income for salaried employees and businesspersons alike. Co-applicants must either show salary slips for the last 6 months or financial statements of business accounts. 
* A CIBIL score or credit score above 685, signifying financially responsible behavior in terms of purchases, past loan repayments, debt, etc. 
* Income Tax Return documents that have the co-applicant’s ITR details. 

Since the overseas education loan eligibility criteria may look different for co-applicants based on their major source of income, the documents one must attach with the loan application may also vary. Read on to understand the documents required to sanction an overseas education loan. 

## List of Documents Required to Prove Co-Applicant's Overseas Education Loan Eligibility

When applying for an overseas education loan, students must submit certain documents, including their ID proof, past academic records, proof of admission from their chosen University, and any entrance exam results if applicable. The co-applicants must also submit their ID proof, alongside the following documents as per their source of income.

### For Salaried Co-Applicants

* Salary slips going back 6 months.
* Income Tax Return documents going back 2 years, or a copy of Form 16.
* Bank statements for the last 6 months.
* A statement of assets and liabilities.

### For Businesspersons/Self-Employed Co-Applicants

* Proof of their business address through a GST certificate, MSME certificate, or utility bill.
* Form 16A of the TDS certificate and their P&L balance sheet.
* Income tax return documents for the last 2 years.
* Certification of their professional qualifications. 

Apart from these specific documents, co-applicants must also submit CIBIL scores for unsecured education loans and collateral documents if applying for a secured education loan. With the backing of a co-applicant, students stand a higher chance of their loan being approved. The presence of a co-applicant can also unlock special perks like higher loan amounts and the [lowest interest rate on education loan](https://www.elanloans.com/blogs/overseas-education-loan-interest-rate-comparison). 

To conclude, the overseas education loan eligibility criteria for co-applicants are a significant factor to consider when searching the market for the ideal overseas education loan. Students can also enlist the help of trusted overseas education loan consultants to narrow down their options and ensure a smooth loan process.