Got accepted to your dream university? Your hard work and nights of studying have finally paid off!
But now with this big news, you are probably left worrying about the expenses. Well, did you know you could opt for personal finance? Yes! A loan for personal use is easy to avail and has no restrictions to its end-use. Moreover, you can also fund up to 100% of the expenses involved.
Let’s explore in detail below.
Requirements to take a loan for students
Since you don’t have a stable source of income as a student, you might not qualify for a loan. In such a case, you may apply with your working parent as a guarantor or co-applicant. Here, the lender will consider the credit score and income level of your parents to determine your personal loan eligibility.
So before you apply for a loan, make sure your co-applicant fulfils the following requirements.
Good credit score
When applying for a personal loan for students, the lender will evaluate the credit total of the co-applicant. Since personal finance is unsecured, a good credit rating goes a long way in securing an affordable loan. So, a credit score of 750 or above can increase your chances of approval considerably.
Additional Read – Can You Get Education Loan for Online Education
Income criteria and documentation
Another key factor to consider is the monthly income. Lenders generally have a minimum income and employment criteria based on the residential city. Your co-applicant must fulfil those requirements to qualify for a loan.
You also need to provide all the necessary documents required by the lender before applying. This includes ID proof, address proof, bank account statements, salary slips, etc.
Things to remember
To ensure the personal loan application process goes smoothly, follow the tips mentioned below.
Determine your expenses
Higher education can be expensive. And tuition fee isn’t the only expense you will have to consider through the loan. Factor in other costs including, travel expenses, accommodation, cost of study material, etc. This will help you in getting an exact estimate of the loan amount you need.
Choose a suitable tenure
When you opt for personal credit, you get the flexibility to choose the repayment tenure. Since the tenure will help decide your EMI payments, you must select a loan duration that suits your parent’s finances. You can use a personal loan EMI calculator to arrive at a suitable monthly payment, and select a tenure accordingly.
Check the interest rate
Always compare the interest rate when deciding on a lender and applying for a loan. This will help you find an affordable loan deal at a competitive interest rate. You must also check the related fees such as processing fee, prepayment penalty, etc., to plan your repayment better.
Additional Read – Dream Big with Personal Loan for Education
General steps to apply for a student personal loan
The steps to apply for a personal loan for students vary from lender to lender. However, here are some general steps you need to follow:
Step 1: Visit the lender’s website
Visit the official website of your preferred lender or download the mobile app and navigate to the ‘Personal Loan’ section.
Step 2: Check loan details and eligibility
Verify your eligibility to apply for a personal loan and check other details like the interest rate, loan tenure, repayment terms, etc.
Step 3: Fill out the application form
Once you’ve verified all details, fill out the online application form with your personal and educational details.
Step 4: Submit the form with the required documents
Finally, upload the required documents and submit them along with the application form.
The lender will verify your details to determine if you’re eligible for the loan. Once they’re satisfied, they will approve and sanction the loan and disburse the loan amount directly to your bank account.
Over to you
Planning for higher education in India or abroad? Then let go of your financial worries and get in touch with Tata Capital! We offer a range of tailor-made loans at the most reasonable personal loan interest rates. From flexible repayment tenure, easy-to-meet eligibility to quick approval and disbursal, you can enjoy it all!
Contact us and get started with a smooth financial journey today!
FAQs
A guarantor for a personal loan for a student in India can be a parent, guardian, or close relative who has a stable income and a good credit history.
It can be challenging to obtain a personal loan as a student because lenders require proof of income and credit history. However, some financial institutions may offer personal loans for students if they have a guarantor or co-applicant.
Several financial institutions in India offer student loans easily. For a smooth application process, competitive interest rates, and flexible repayment terms, you can consider Tata Capital.
As a student, you can fund up to 100% of your educational expenses with a loan.
There are several benefits of obtaining a personal loan. These include quick access to funds, flexible use, a streamlined application process, etc.
Yes, a student loan is a convenient way to cover the cost of education, allowing you to focus on your studies without any financial stress.
03 December 2024
4 mins read
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