A study suggests that around 70% of rural and 40% of urban Indians are unable to complete even their secondary education. Even fewer individuals go on to complete college courses, primarily due to the lack of funds.
Under such a condition, you may have very limited options, but to finance your higher education with financial assistance from lending institutions. One such popular option for financing higher education is personal loan, which comes with several benefits and offers enhanced utility.
Personal loans: Why are they suitable to fund higher education?
Personal loans are unsecured loans that offer immediate funding assistance to students when they need to fulfil course fee liabilities. Besides available as collateral-free advances, personal loans are the go-to choice for many others pursuing their academics due to a diverse range of features and benefits.
Listed below are some of the benefits you can avail when you decide to finance your higher education with such a form of credit –
1. Access to a substantial amount of money
College and tuition fees can be significant, especially if one pursues professional courses from private institutes. Select financiers allow borrowers to avail of loans of up to Rs.25 lakh to fund their education. An individual can even finance a great education abroad with a personal loan.
2. No requirement of guarantor or collateral
Availing a personal loan for higher education can be a suitable choice, especially for students who plan to earn as well as study. Such an advance does not require one to name his/her parents or guardians as co-applicants.
Additionally, part of what makes unsecured personal loans popular is the ability to utilize them without collateralizing assets. Thus, even if you do not possess anything of value, such as fixed deposits, properties, gold, and others, you can still acquire this type of funding.
3. Flexibility of tenure
If you want to finance your higher education with such credits, be sure to pick the most suitable repayment period. Most lenders offer personal loans with a maximum repayment period of up to 5 years. The added freedom to pick the tenure as per one’s repayment capability is highly beneficial, especially for students.
4. Quick approvals
An education loan involves significant hassles for the borrower, with extensive documentation and other factors. In this regard, personal loans offer remarkable benefits. With most lending institutions welcoming online applications for such loans, the time taken for approval has fast reduced too. Further, the minimal paperwork necessary also accelerates the process, letting an applicant avail a personal loan for abroad studies whenever required.
Financial institutions, such as Bajaj Finserv, provide pre-approved offers to simplify the lending process further. These offers are applicable to personal loans, business loans, and other financial products. You can check your pre-approved offer by submitting a few essential details, including your name and phone number.
5. Easy-to-meet eligibility criteria
Individuals with a credit score of 750 or more and a stable source of income are eligible to avail of the best personal loans. While some lending institutions may seek additional criteria, most are happy to lend to you if you carry an impressive credit rating. With scores higher than 800, individuals can also negotiate with the lender for lower interest rates.
Keep in mind that a good credit score can help you get better terms on your personal loan. This should reduce your repayment burden, allowing for convenient servicing of the existing due.
With these benefits accompanying a personal loan to finance your higher education, ensure you are aware of the application process too.
How to apply for a personal loan for education?
One can submit his/her personal loan application online by following the steps mentioned below –
Step 1: Visit the official website of the chosen financial institution.
Step 2: Navigate to the personal loan section and click on apply now.
Step 3: Fill up the application form with your name, address details, contact information, income, and others.
Step 4: Choose the personal loan amount and its repayment tenure.
Step 5: Complete the documentation process, submitting your KYC, income proof papers, and other documents necessary.
Step 6: Submit the application and await a response from your financial institution.
Also, check your monthly liabilities from the credit with a personal loan EMI calculator. Thankfully, such tools are widely available on the internet, enabling one to determine his/her exact EMIs from a loan beforehand. They only simplify the credit availing process, allowing you to assess your monthly outgoes and helping make an informed borrowing decision.