How to Get a Personal Loan for Students in India?

The importance of education in an individual’s life cannot be summed up in words. Not only does education equip you with the necessary skills required to succeed in professional life but also helps you become a responsible citizen. With the easy availability of Education Loans, you can now conveniently pay for the University/ College fees and repay it through EMIs after getting a job. For example, HDFC Credila Education Loan finances 100% of the education expenses.

The process of application is also seamless. You can find all the relevant information about eligibility, documents required, list of universities and access Education Loan Calculator online.

Yet it is important to understand that Tuition Fees are not the only expense involved with higher education.

Irrespective of the fact whether you want admission in an Indian University or an International University, there are several other expenses that you need to take care of. Flight tickets, moving expenses, buying a laptop, buying new books, paying for a security deposit are just some of the expenses that you need to take care of. In most cases, your personal savings also might not satisfy this requirement.

In case your Education Loan application is not approved, or there is an urgent need of money to take care of expenses other than the Tuition Fees, then your best bet is to get a personal loan for students in India. Many financial institutions in India have started offering Personal Loan for Graduate and Post Graduate students to help them meet the additional expenses involved with higher education.

Personal Loan for Students in India

Financial institutions in India offer Personal Loans for students to help them take care of the expenses their savings cannot meet. A Personal Loan for students can be used for various purposes like travel, accommodation, books, moving expenses, etc, unlike the Education Loan. Though in order to avail a Personal Loan, the applicant must have a regular source of income. However, if you are a student and do not have a job, then you can add your parents or spouse as a co-applicant. This will enhance your eligibility and allow you to be approved for a Personal Loan for students in India. As it is an unsecured loan, there is no need to offer any collateral, and you can use the money as per your requirements.

Eligibility criteria for Personal Loans for students in India

To avail of a Personal Loan for pursuing higher education in India or abroad, you would require your parent or spouse to become a co-applicant. personal loan interest rates for students start from 8.45% per annum with the maximum repayment tenor available being 60 months.

The general eligibility criteria followed by lenders while assessing Personal Loan applications on behalf of students are:

• The applicant must be between 16-35 years of age.
• If the loan amount is more than a specified limit, then some collateral might be required to secure the loan amount.
• The income of the co-applicant (parent/ spouse) should meet the minimum threshold specified by the lender.
• The applicant must have already secured admission in a course before applying for the loan.
• Documents required by the lenders are: –
  • Identity proof, address proof and age proof (for applicant/ co-applicant)
  • Income proof of the co-applicant (parent/ guardian/ spouse).
  • Bank statements of the applicant and co-applicant.
  • A copy of the admission letter from the college or university.
  • Copy of the Passport and Visa (if going abroad)
  • Kotak Personal Loan for students is available for a maximum loan amount of up to Rs. 15 Lakh.
  • HDFC Bank offers Personal Loans for students with the maximum loan amount being Rs. 40 Lakh.
  • State Bank of India offers Personal Loans for students with a maximum loan amount of Rs. 15 Lakh.