You may encounter several situations when you need urgent cash while pursuing your college education. This is especially true during graduation or even at a higher level. There could be many reasons why you need money instantly. It could be the sudden announcement, events, or projects. There might be academic trips, such as workshops or seminars, in another city.
A personal loan for students is the right way to help meet your cash requirements. These loans work to your advantage as they offer you numerous great features. These include simple application, quick disbursal, easy repayment, and more. A reputable lending institution approves the loan quickly after evaluating your valid documents. Then they disburse the funds you require immediately.
Reasons to Secure a Personal Loan for Students
There are several reasons why students apply for a personal loan, and they are mentioned below:
1. Examination Fees
There are times when you, as a student, might have to pay the pending fees, including development fees, laboratory charges, etc., while applying for an examination. It requires quick loan approval and instant disbursal.
2. The Accommodation
You need the money for suitable accommodation. Applying for a personal loan for students is what you must focus on.
3. Extra Classes / Tuition / Extracurricular Activities
If you want to take your technical skills up a notch, manage tuition fees, take additional classes, or enroll in extracurricular activities, you need cash. So, it might be crucial for you to apply for the loan.
4. Purchase Types of Equipment
If you are pursuing a technical course, you might have to buy equipment or tools for your project(s). So, you might require some quick money.
Personal Loan for Students - Features and Benefits
A personal loan for students works in your favor for various reasons. These include quick approval, instant disbursal, simple repayment, and more. You can obtain a personal loan hassle-free from a reputable lending institution.
Here is a list of some of the most distinct features of student personal loans:
1. Instant Approval
A reputable lender will have a fair and advanced lending mechanism. So, you can look forward to a fast personal loan approval for students. That way, you can have instant cash in your bank account.
2. Fast Disbursal
After the personal loan is approved, the disbursal process is done at the earliest. Hence, you can look forward to receiving funds in your account without hassles.
3. Less Paperwork
When you apply for an education loan from a reliable lender, you don’t have to worry about the documents. The less paperwork signifies that you don’t have to submit every document’s hard copy. Doing so can help you save time for a personal loan.
4. Easy Repayment
The personal loan repayment becomes simpler due to flexible repayment options. You can repay the personal loan you have secured stress-free and with ease.
5. Flexible Tenure
A personal loan for students offers a flexible tenure. It helps you make the loan repayments at your convenience. Doing so makes you enjoy additional benefits.
6. No-Collateral
No need to provide any collateral to the lending institution! You can now get the approval for a personal loan based on your financial stability.
Eligibility Requirements for the Personal Loan for Students
There are several factors on which the eligibility criteria of a personal loan for students depend. These factors include age, income, proof of identity, nationality, and more. The lending institution can then approve the personal loan effortlessly.
Listed below are some crucial factors you need to meet as eligibility requirements by the lender:
- Age: Your age when applying for a personal loan must be at least 21 years.
- Identity Proof: You must have proof of identity, including a college-issued ID card.
- Income: Your proof of identity plays a vital role, especially when you’re getting a scholarship or stipend.
- Nationality: You must be of Indian origin.
- Residential Status: The address proof is required. It could be the hostel ID, rent agreement, etc.
- CIBIL Score: A minimum CIBIL score of 600 is required to apply for the loan.
Documents Required for a Personal Loan for Students
You must provide the following documents to complete the online application process for an education loan.
- Identity Proof: Aadhaar card, PAN card, Passport, or Voter ID card
- Address Proof: Utility bill, rental agreement, driving license, or passport
- Academic Documents: (Mark sheets, admission letters, etc.)
- An admission letter from the college or university, along with the fee schedule.
- A self-attested passport-size photograph
- Income proof of the loan borrower or co-applicant: bank statements, salary slips, ITR
Personal Loan for Students - How to Apply
Applying for a personal loan for students is an easy process. You just need to follow some simple steps to get the funds you require instantly.
1. Check the Lender’s Website
Visit the website of the lending institution from which you want to secure a student personal loan. It would be a great choice to carry out the online process successfully.
2. Check Details About the Personal Loan
Before you apply for a personal loan, you need to know how much extra you will be paying back. Different lenders offer different interest rates. These rates can change based on the loan amount you are willing to borrow. Moreover, you must consider the tenure during which you can make your loan repayments without difficulties.
3. Fill Out the Loan Application Form
Once you are certain that the personal loan has great features and significant benefits, you can fill out the loan application form. Ensure that your details are accurate. That’s because a little error can put your form on hold, causing a delay in the loan approval.
4. Submit the Documents and Wait for Approval
After you submit the documents, the approval process will start. The representative will notify you about the loan approval confirmation.
5. Receive the Funds in Your Bank Account
The respective bank team disbursed the funds you require directly into your bank account.
Tips to Consider Before Applying for a Personal Loan for Education
Before you start working on the application process, you must consider several crucial factors:
1. Loan Amount
You must thoroughly evaluate your education expenses. You must borrow the funds to cover those expenses. If you borrow the funds more than you require, it can lead to unwanted debt and higher repayment obligations.
2. Interest Rates
The interest rate considerably impacts your loan cost. Reduced interest rates lower overall expenses. Search for lending institutions that offer affordable interest rates. Explore any special benefits available on the education loan interest rate.
3. Repayment Capacity
To make the loan repayment, determining your capability is significant. A larger loan amount with a shorter tenure can lead to higher installments every month. So, ensure that it matches your financial standing.
4. Loan Tenure
To get a personal loan for students, the loan tenure is significant. After all, it has an effect on your EMIs and overall interest costs. Don’t forget that longer tenures have smaller EMIs. Opt for a loan tenure according to your financial condition.
5. Eligibility Criteria
Ensure that you meet the eligibility requirements as required by the lending institution, including age, income, nationality, credit score, etc. If you don’t meet these requirements, it can reject your loan application.
6. Credit Score
Keep in mind that the credit score is essential for loan application approval. It also determines the interest rate. Having an ideal credit score can lead to highly favorable loan terms.
7. Loan Purpose
Some lending institutions offer a personal loan for students that is designed to cover various expenses, such as books, tuition fees, and other education-related costs.
Concluding Remarks
A personal loan is granted by lenders to students who want to fund their higher studies. These loans are a practical financing solution when education loans seem next to impossible. With a personal loan for higher education, you (as a parent or working professional) can optimise your loan approval chances on a personal loan.
Also Read – Instant 10,000 Loan for Students
FAQs
If you are a student who does not have a full-time job, most lending institutions require proof of income or a co-applicant. Proof of income (or part-time work) will show your ability to make loan repayments.
A credit score of at least 600 is considered ideal if you are looking for quick approval on your loan application. However, an individual having a poor credit score can also apply for a personal loan for students. Improve your financial reliability before you choose to apply for a personal loan for students.
Some lending institutions offer quick approvals on personal loans for students. They ensure the loan borrowers an expedited process and disburse the funds they require in a few hours.
Yes, you have to pay certain fees that include processing fees or late payment fees.
To be eligible to apply for a personal loan for students, you must be at least 21 years old, have an ideal credit score, be an Indian resident, and have a valid Aadhaar card and PAN card.