Analyzing Students Personal Loan
Higher education is relatively expensive in emerging economies like India. Many Indian students require financial resources to help fund their education, living expenses, or related personal costs. These students have no jobs and hence require a lending hand to help complete their higher education. Personal loans can be a great option for students to fund their tuition and living expenses by offering flexibility.
Myriad of expenses like tuition fees, living expenses, transportation costs, extra-curricular activities, etc can be covered using student personal loan. Several factors, such as location, college tuition fees, etc impact the student personal loan amount.
Personal Loan for Students Eligibility
Personal loans do offer convenience for students, but it is vital to note a few factors before applying for a personal loan. These factors will provide flexibility and an easy repayment solution to help the student concentrate on their academic achievement stress-free.
Higher education is relatively expensive in emerging economies like India. Many Indian students require financial resources to help fund their education, living expenses, or related personal costs. These students have no jobs and hence require a lending hand to help complete their higher education. Personal loans can be a great option for students to fund their tuition and living expenses by offering flexibility.
Myriad of expenses like tuition fees, living expenses, transportation costs, extra-curricular activities, etc can be covered using student personal loan. Several factors, such as location, college tuition fees, etc impact the student personal loan amount.
Personal Loan for Students Eligibility
- The age of loan applicant must be above 18.
- Recognized university must have accepted their admission application.
- They must have a good and consistent academic performance.
- Since the student does not have a job, they must have a guarantor with a steady income to help acquire the personal loan.
- Admission letter from an accepted university or college.
- Address proof
- Bank statement
- Identity proof
- Guarantor Proof
- Academic proof like mark sheet, collage ID, etc.
- Photograph copies
- Banks: Several Banks in India such as ICIC Bank, SBI Bank, etc provide student loans at flexible interest rates. However, these financial institutions require a guarantor to avail personal loans to students. The student loan can begin from 50,000 and can go up to 20lakh depending on the financial requirement of the student.
- Government programs: The Indian government provides several sponsored programs that allow students to avail of personal loans at nominal interest rates.
- Money Lenders: Students can also get personal loans from moneylenders if they fail the eligibility to secure a bank loan. It is to be noted that the interest rates of money lenders like online money lenders, credit unions, etc are often higher. These money lenders provide smaller personal loans compared to Banks or government programs.
- Instant loan App: There are several instant loan apps like Buddy loan, CASHe, StuCred, etc that help student with securing funds for academic needs. Students can compare the interest rate of several loan apps to get best deals and flexible loan tenure.
Personal loans do offer convenience for students, but it is vital to note a few factors before applying for a personal loan. These factors will provide flexibility and an easy repayment solution to help the student concentrate on their academic achievement stress-free.
- Interest Rates: Repayment of loan amount can be dependent on interest rates. It is, therefore, important to look for student-friendly interest rates to help you make the most out of your loan amount. You must research and compare student personal loan interest rates from varying financial institutions to get the best loan deals.
- Processing charges: Financial institutions like banks, online lenders, etc charge processing fees to students applying for personal loans. You must enquire about the processing fee beforehand to avoid any misunderstanding later.
- Repayment Tenure: Different financial institutions provide a plethora of repayment model options for student personal loans. As a loan applicant, you must read and understand the repayment terms and conditions properly before applying for a personal loan to eliminate any grievance or financial strain in future.
- Penalty charges: Many students fail to take penalty charges into account in the event of failure to repay the EMI. Intuitions like private banks, online lenders, etc sometimes have high penalty charges on student personal loans. Therefore, have a clear understanding of penalty charges to avoid repaying hefty penalty charges later. It is vital to note that late repayment can impact your student score credit.
- Select the financial institutions that you want to apply for a student personal loan.
- Ensure that you meet the eligibility criteria of the preferred financial institution.
- Apply for the student personal loan online or offline, depending on the chosen financial institution's requirement.
- Collect all the required documents along with your passport-size photograph and submit the same.
- All your documents are then verified by the financial institution. Then you will receive a loan agreement document. The loan agreement be terms& condition must carefully read before signing it. The personal loan processing will begin upon you signing the loan agreement.
- Depending on the financial institution and the loan processing process duration, the loan amount will be then credited to your bank account accordingly for your usage. Some intuitions provide instant loan approval for student personal loans.
