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. But, the fact of the matter is that the 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 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 11.75% 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)
If you are interested in availing a Personal Loan for Students but do not know how to proceed ahead, here are some tips to help you get a Personal Loan easily:
1. Estimate your expenses:
This is the first and most important step in the application process. It is important to consider all the expenses that you have to incur like travel, accommodation, coaching fees, moving expenses, etc. It is recommended to get in touch with any acquaintances living in that country or state or connect with other students through online channels, and know the cost of living.
Get a realistic estimate of the cost of living while travelling to a new country or city. Once you have an accurate estimate of the costs involved, you will get an accurate idea about the Personal Loan amount that you need to pursue your educational goals.
2. Check your eligibility:
Check with financial institutions offering Personal Loan for students at lowest interest rates and flexible repayment options. It is important to compare the interest rates and repayment tenor of leading lenders to keep the EMIs at a manageable level. Check whether you are eligible for the amount you need as the Personal Loan. As the maximum Personal Loan amount varies across lenders, you need to apply with one who offers the amount that you require.
Following is some information on maximum loan amounts offered by leading financial institutions in India.
- 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.
3. Decide repayment tenor
It is important to opt for a Personal Loan for students from a lender that offers flexible repayment tenor, as your EMI amount is directly linked to the repayment tenor available. It is recommended to have a realistic approach while choosing the tenor as your earnings as a student might not be as the same while you were working as a professional. You must, therefore, opt for an EMI that you and your parents or spouse can together afford comfortably.
4. Submit your application
Usually, Personal Loans require minimum documentation, and some lenders offer Personal Loan without documentation for their existing customers through pre-approved offers. You can log on to the official website of the lender and follow the process to submit your application online. If you’re an existing customer, then you can apply for a Personal Loan from the mobile app or net banking interface. There are various online platforms as well, where you can apply for a Personal Loan for students. If you wish to go on with the process offline, then it is recommended to visit the nearest branch and submit your application for a Personal Loan. The time taken for processing a Personal Loan application is very minimal and is usually completed in a few working days.
5. Use the money judiciously
Once the funds have been credited to your bank account, take care of all the expenses that you have to incur. Though, you must make it a point to use the amount judiciously and do not splurge it on unnecessary stuff. It is time to start the exciting journey towards fulfilling your education goals, and you do not want to start it on a wrong note.
A Personal Loan thus can help you pursue your education goals and tap the best career opportunities on offer.
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