How To Get A Personal Loan For Students In India

Let us first understand what a personal loan is. A personal loan is a type of loan that does not require any security or collateral. It has the minimum amount of documentation. A fixed duration is set to repay the loan. It is not a secured form of a loan. Payments have to be made every month.

A personal loan for students is a great way to pay for the expensive education system. Everyone may not be capable of paying for a decent education. As a result, most individuals choose to take out a student loan to pay for their education. There are various reasons why you would not be qualified for student loans or how this might demand you to pay a fixed sum on your own, something you may not be able to do. In these situations, students may choose to take a loan rather than ask relatives or friends.

What is a student loan?

Personal loan for students is a completely different setup than normal personal loans. An academic loan is given for a certain use and may only be applied toward the programme you specified while seeking the loan. It can cover every cost associated with studying during the program. The price of a PC, textbooks, travel expenses (whether you are studying overseas, for instance), entry fees, tuition costs, library expenses, etc. are just a few examples of what is typically covered. A certain portion of the overall price of a school must often be covered by you on your own. As the legal guardian is the principal petitioner, trainees without professional experience or earnings are capable of applying for such a bank loan for school.

Points to check and keep in mind while applying

There are a few points to keep in mind while applying for a personal loan for students. Some of them are:

Determine the precise stipulation

Knowing your needs before applying for a bank loan for college is essential. For tuition fees as well as other research expenses, you should be aware of the precise amount you require. 

Check your eligibility

The following qualifications must be met to be eligible for a bank loan for education:

• You must be a citizen of India.
• In your prior board examinations, you ought to have received at least 50% of the possible points.
• The UGC, the state, or the AICTE should approve the institute.
• You shouldn’t have an open student loan account. 

Select the right lender

To maximise your rewards, research multiple lenders based on several factors, such as interest rate, service charge, missed payment charges, additional charges, ease of loan application and repayment, customer ratings, etc., and pick the best provider.

Estimate the EMI

Unlike student loans, the EMI for personal loans begins right away. Therefore, make sure that either the student or the guardian can afford to pay back the sum of money you are choosing and that the regular instalments won’t put too much strain on your finances.

Interest rate

Interest on a personal loan for students ranges from 6% to 13% each year.

Required documents

To apply for a bank loan for school, students will need the following documents:

• ID Verification
• The Address Proof
• Income Evidence
• A duplicate of the letter of admission
• Mark sheet for classes 10, 12, and college
• Financial records over the last six months
• Letter of demand from the university
• The borrower signs the repayment plan 
• Funding request form with the applicant’s signature 
• Photographs 

Online methods to get a personal loan for students

Digital bank loan applications are the easiest and fastest method. To complete the online registration for a bank loan, adhere to these paths:

• Browse the creditor’s official site once you’ve decided on one.
• Personal loans can be selected by going to the lending categories.
• Select “Register Now.”
• Complete the application with your information and send it.
• After the borrower evaluates your information, you will be contacted by phone or text.
• You must give the borrower the paperwork they need or make arrangements for your paperwork to be picked up.
• After the loan is approved, the money will be sent right away to the bank account that was chosen.
• If you are already a client of the borrower, the procedure will go even more quickly and simply because you may submit an application using banking services.

Offline methods to get a personal loan for students

These are some methods to apply for a personal loan for students offline. The following are the steps:

• Go to the government’s or NBFC’s closest location.
• The person from the institution or NBFC will walk you through the procedure.
• You must send the lender an online application for a bank loan that has been properly filled out and checked, along with other documents they need.
• When the loan is approved, the funds will be transferred to your designated bank account.

The key takeaways

One can always select a bank loan for the study to provide your child with the educational opportunities they need but are lacking the cash for it. You won’t have to shoulder the entire cost of your education and other associated fees by using this type of credit. Numerous advantages of a bank loan for schooling include reasonable borrowing costs, adaptable loan payback terms, and higher options. These loans are simple to apply for and swiftly deposited into your bank, allowing the child to receive the high-quality education that they need.

To prevent any unforeseen problems later, make sure you carefully read the policies and terms. Also, check loan contracts before applying for a personal loan for students.

Piramal Finance is always there to help you with all of these. Complete guidance will be provided based on your needs. Get in touch with Piramal Finance to examine your finances and learn more about the loans you take out.

Visit https://www.piramalfinance.com/ if you have any questions.