Even though a quality education is crucial for a good and successful life, it is also costly in today’s society. A good amount of money is usually required to take advantage of high-quality education. Various financial institutions offer personal loan for students that are easy to obtain for students, recognizing this need.
Personal loans for students in India differ from education loans as they are a form of credit. Depending on their situation, personal loans can be taken by either the borrower or a family member. If you want to finance 100% of the expenses, you should take out a personal loan for students rather than a student loan.
Personal Loans for Students and its advantages
Personal loan for students are generally taken to pay for post-graduate study and their associated fees, such as books, tuition, and living expenses. These loans differ from others because they have low-interest rates and deferred payment schedules, where the student doesn’t have to start paying back while they are still in college. It is generally understood that student loans include tuition and course fees, examination fees, caution deposits, library and laboratory fees, equipment, books, and other study-related materials. As part of some student loan schemes, travel expenses for your overseas studies and the cost of a two-wheeler are also covered for study tours.
Eligibility for Personal loan for students
- Candidates must be Indian citizens
- A copy of the confirmation letter of admission from a reputable university in India or abroad is required
- The applicant must be accepted into an institution affiliated with the AICTE/UGC/ Govt.
- The candidate must be between the ages of 18 and 35.
- In most cases, there is a more chance of loan approval if the candidate has a good academic record.
- An applicant must pursue a valid graduate, post-graduate, or PG Diploma degree program.
- Depending on the amount of the loan and the source of income, the security demanded by loan companies is usually a guarantor or tangible collateral.
Things to keep in mind before submitting an application for personal loan for students
Before you move forward with your application for a Personal Loan, there are a few things you need to keep in mind.
Make an accurate estimation of the amount
The cost of education is not limited to the amount paid for tuition; many other expenses may be necessary. Remember to provide the same information in the application for the personal loan for student you intend to use. Take into account the expense of travelling, the cost of study materials, and so on. It will assist in planning your spending more effectively, and you will be able to estimate the appropriate amount. It’s possible that either overestimating or underestimating won’t suit the aim.
Determine the most appropriate period for the payback of the loan amount
You can select the period over which you will be responsible for making payments, but you should try to avoid making it either excessively lengthy or excessively short. If the duration is short, there is a possibility that it will result in a substantial monthly outflow; if the term is very long, there is a possibility that it will result in a high-interest payment and a rise in the overall cost of borrowing.
Confirm the current interest rate
It is of the utmost importance to verify the interest rate and the additional fees associated with borrowings, such as the processing fee or the prepayment penalty. You’ll be able to take advantage of more favourable interest rates if you have a good credit score.
There are several reasons why instant personal loans for students might be a better option because they aren’t expected to require a margin or collateral and allow you to use the money for whatever you choose, including tuition, course materials, and more. There is no hassle involved in applying for a personal loan for a student, and it can be completed with only minimum documentation. After your loan has been granted, the bank will proceed with personal loan disbursement process and deposit the approved loan amount directly into your bank account.
The best part is that you can check your personal loan eligibility criteria online easily by using an online web application. You may be eligible for tax deductions related to the interest payment, and the loan may be repaid in affordable installments spread out over the period you select.