Last Updated on September 29, 2022 by ghiselle rousso
Students who wish to study but have financial constraints can benefit from personal loans for students. It is a great boost for banks, as well as for your career, to pay for your education while you’re studying and then repay when you start earning. Almost all of India’s major banks provide personal loans for students. The amount of the loan is determined by the college and the course. The most important benefit of cheap personal loans is that they can be repaid a year after you finish your study or find work, whichever comes first.
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Eligibility Criteria for personal loans for students
To get personal loans for students from a financial institution or bank, the applicant must meet student personal loan eligibility, and he or she must know the procedure of “how to apply personal loan for students.” Below is a list of general eligibility requirements for student loans:
- The applicant must be a citizen of India
- Applicants must be between 16 and 35 years of age
- To qualify for personal loans for students, a co-applicant is needed.
- Collateral will be required as security if the loan amount exceeds the specified limit.
- Co-applicants ‘ salaries must meet minimum salary requirements specified by the banks
- To apply for a loan, the applicant must be enrolled in a course or college.
Interest Rates of personal loans for students
Student loans have slightly higher interest rates than home loans. Though interest rates vary by bank, they normally fall within 11.75 percent to 14.75 percent per year. Students enrolled in top universities such as IIT or IIM might take out a student loan with a lower interest rate. The interest rate for female applicants is lower at certain public sector banks.
Features and Benefits of personal loans for students
- You can fulfill your career ambitions by paying for your education expenditures with an education loan.
- Student loans are simple to obtain and do not have strict requirements. As a result, this is a very popular student loan.
- Student loans are an excellent substitute for other sorts of borrowing, such as personal loans. Student loans have lower interest rates than personal loans and have less restrictive terms and conditions.
- The most important element of an education loan is that the student begins repaying the loan once the educational course is completed. Therefore, the instant personal loans for students might be postponed until the applicant earns money within a certain time range.
- Student loans assist the borrower in managing educational costs and provide tax benefits. Section 80E of the Income Tax Act allows you to claim a tax deduction for interest paid on student loans.
- The existence of one education loan in a family may impact the acquisition of additional education loans in the same family.
Almost all financial organizations in India provide personal loans for students. These loans can be used for various professional courses, including post-graduate degrees in engineering, management, and medicine. Vocational and part-time courses are also eligible for loans.
Submit the loan application
Personal loans do not require many documents and if you are an existing customer then you may be pre-approved. You can easily log on to the lender’s website and submit your loan application by following due process.
If you are an existing client then you can even use the bank’s mobile app to apply for a loan. Many online platforms offer instant loan for students as well. If you wish to apply offline, then you can visit a bank’s branch and submit the loan application in person.
It hardly takes any time to process personal loan applications and hence you may hear from your lender in a matter of days. An instant loan for students can help them achieve their educational goals and tap career opportunities.
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