In recent years, there has been a significant increase in the cost of higher education and professional degree courses in India. As a result, many students with limited access to finances find it challenging to pursue a course of their choice. In such a situation, some students opt for external means of funding, such as a personal loan that can help for abroad studies to finance their tuition-related expenses.
However, many individuals cannot avail an education loan because of its strict requirements.
For instance, one of the provisions of such a loan is that the applicant should self-fund 5% of the education expenses in case of domestic studies and 15% when pursuing a degree abroad.
As a result, they can consider other funding options, such as personal loans for students. Here is how they can get a personal loan for higher education in India –
Compare lenders
Before applying for a personal loan, borrowers should thoroughly compare the personal loan features and benefits offered by various lending institutions. Some of the features that they should look for include the following.
- A high loan amount
One should look for a lending institution that offers a substantial personal loan amount at an affordable interest rate and without any collateral. It will enable students to finance their educational expenses easily without risking any asset.
- Additional features
Borrowers should also consider lending institutions that provide additional features such as Flexi Loan facility. It enables them to withdraw only the requisite amount multiple times from a pre-sanctioned loan amount and pay interest only on the withdrawn amount.
Additionally, some financial institutions such as Bajaj Finserv also extend exclusive features like pre-approved offers to existing customers for a hassle-free application procedure. Such offers can be availed on an array of credit products such as personal loans, business loans, credit cards, etc. One can also easily check his/her pre-approved offer by entering only the name and contact information.
Application procedure
Prospective applicants can follow the steps given below to apply for a personal loan online –
-
- Visit the personal loan section on the official website of the selected lending institution.
- Borrowers can access the online application form for a personal loan from this section.
- In the form, enter all relevant details like the loan amount, repayment tenure, along with the required personal, financial, and employment details.
- Eligible applicants can submit their essential documents to a representative from the lending institution to complete the application procedure.
Alternatively, they can also visit the nearest branch to apply for a personal loan for students.
Eligibility criteria and documentation
However, before applying for a personal loan for higher education, applicants should go through the eligibility criteria specified by the lender to make sure that they meet all the parameters. Even though the exact parameters may vary for each lending institution, there are some basic requirements that every applicant must meet. They include CIBIL score for personal loan which should be 750 and above, age within 23 to 55 years, employment with a reputed company, regular source of income, etc.
Apart from these parameters, applicants can also use online tools like a personal loan eligibility calculator to check the amount that they can qualify for based on their monthly income, expenses, city of residence, and age. It will enable them to ascertain the loan amount that they are eligible for and accordingly apply for the same.
Besides, eligibility criteria, applicants should also go through the list of documents required while applying for a personal loan. It will enable them to complete the paperwork in no time during the application procedure, thus ensuring fast approval on their application for personal loan for abroad studies or in India. The list of essential documents is mentioned below.
- KYC documents such as Aadhaar card, Voter ID card, PAN, Driving License, Passport, etc.
- For salaried applicants, employee ID card, salary slip, and bank account statement for the last three months.
However, before applying for a personal loan for students, borrowers should prepare a rough estimate of the overall expenses that will be incurred during the entire course. It is especially crucial in case one is applying to study abroad. It will enable him/her to determine the required loan amount and further streamline the application procedure.
