Personal loan for students is availed to finance the expenses of higher studies or studying abroad. These credits provide the necessary financial backing to fund expensive courses, tuition fees, and other costs associated with living and pursuing higher studies. To borrow such loans, a student must be the primary borrower. Parents can be co-borrowers on that loan to back their child’s education.
Funds up to Rs.25 lakh can be availed through an instant loan for students. It not only meets the course fees, tuition fees, but also the related expenses. It’s zero end-use restrictions allow you to utilise the sum as per your requirements. However, whether you are taking the personal loan for study abroad or higher studies in India, there are some prerequisites you must follow.
5 points to consider before taking a personal loan for student
As students, you might be new to the financial market, and the decision of borrowing a credit like a personal loan should be carefully considered. Here’s a list of five points which you must understand before availing a personal loan for student:
- Estimate the gross expense and cost of education
If you are planning to borrow the loan for studies overseas, the travel and lodging expenses shall also be taken into consideration. Even if you plan to pursue a course within India, several expenses, other than the tuition fees, will come in. Based on these outgoes, form an estimate of the total cost. The next step would be to look for a lender who offers that loan principal.
- Compare and look for the best lender.
Since several lenders offer personal loans for higher studies, choosing the ideal one becomes a task. You can compare the interest rates, benefits, principal amount, etc., being offered by different lenders to get a thorough idea.
- Select an ideal repayment tenure
Repayment of your loan depends on your course progress, future employment prospects, savings, and so on. The tenure you choose to reimburse the loan is also a crucial factor in this respect. Opt for a span which keeps the EMIs affordable.
- Build a good credit score
Being a student, you get a chance to build a good credit history by timely repaying your personal loan. You can also follow other ways to improve your personal credit score. It will ensure better terms and chances of approval when you apply for a loan in future.
Students can also enjoy dedicated and customised benefits, such as pre-approved offers, extended by reputed financial institutions like Bajaj Finserv. This is one of the things you must check before applying for a personal loan for students.
Pre-approved offers are extended against both secured and unsecured loans. It simplifies the application process and helps save time. To check your pre-approved offers, you need to share your name and contact details online.
Other than these, there are some essential requirements you must fulfil to avail a personal loan. For example, you must meet some specified criteria under eligibility for a personal loan first. This includes parameters like your age, income, and so on.
Once you meet the eligibility criteria, you can go and apply for the personal loan for your higher studies. The lender might ask you to submit certain documents to verify your identity and eligibility. Documents required for a personal loan usually include KYC documents, bank account statements, and recent passport-sized photographs.
If you are planning to borrow the loan for studies overseas, you must form a blueprint of your education plan, expenses, course details, as well as repayment plans. For example, you can check the estimated cost of studying in Australia or any other country where you wish to study and calculate the financial outgo. This would help you understand, plan, and manage your finances better.