Personal Loans For Higher Education In India: From Dreams To Reality

Dreaming of a brighter future? Pursuing higher education is the first step towards realising your aspirations. Whether you want to study in India or abroad, the cost of education can often be a barrier. That's where personal loans come in.

In this blog post, we'll explore how a personal loan for higher education can help you achieve your dreams of higher education and provide practical information to make informed decisions.

Personal loans: Unique and flexible

One of the key advantages of personal loans is their flexibility. Unlike traditional education loans that restrict the use of funds solely for educational purposes, personal loans offer complete freedom in utilising the loan amount. So if you decide to take a small vacation or manage your lifestyle expenses while studying abroad, you won't face any restrictions or approvals.

Moreover, personal loan for students offer longer repayment tenures compared to conventional education loans. While most education loans provide a repayment period of 7 years, personal loans allow repayment over 6 years. This shorter tenure ensures that you pay less personal loan interest rates overall and manage your finances more efficiently.

Personal loan interest rates and additional withdrawals

The personal loan interest rate dedicated to education remain the same, regardless of whether you pursue domestic or international education. Starting at attractive rates, these loans are designed to be affordable and accessible for students.

Additionally, personal loan for education offer the flexibility to withdraw additional funds beyond the initial loan amount. This feature works like an overdraft facility, allowing you to access extra funds when needed. The interest is charged only on the amount utilised, providing you with greater financial control.

Sample calculation: Planning your finances

To better understand how personal loan for students can aid in pursuing higher education, let's consider a hypothetical scenario:

Suppose you secure admission into a prestigious management program with tuition fees totaling Rs 20 lakhs. You decide to finance your education through a personal loan with an interest rate of 12% per annum.

By utilising an online personal loan calculator, you can calculate your Equated Monthly Instalments (EMIs) and plan your finances accordingly. Let's assume you choose a repayment period of 5 years (60 months). Using the formula for EMI calculation, your monthly instalment would be approximately Rs 45,566.

This sample calculation showcases how personal loan for students allow you to manage your finances effectively and budget for the monthly repayments. It's essential to consider factors such as interest rates, loan tenure, and repayment capacity before finalising your loan amount.

Practical scenarios: A personal loan for every need

Personal loan for higher education cater to various situations and needs. Here are a few scenarios where these education loanscan be incredibly beneficial:

• Domestic education: If you're pursuing education within India, personal education loans can cover tuition fees, accommodation expenses, study materials, and other related costs.
• Overseas education: Studying abroad involves additional expenses like travel, visa fees, living costs, and healthcare insurance. Personal loans can help you finance these aspects without the need for collateral or guarantors.
• Skill enhancement: Personal loans are not limited to traditional academic courses. They can also be used for skill enhancement programs or short-term courses to boost your employability.
• Career development: Planning to pursue an MBA or specialised courses to advance your career? Personal loan for students provide the necessary financial backing to achieve your professional goals.

Conclusion

Investing in your education is investing in your future. Personal loan for higher education provide the necessary financial support to turn your dreams into reality. With competitive interest rates, flexible repayment options, and the freedom to use funds as per your needs, these instant loan for students make higher education accessible and affordable. 

Take that first step towards achieving your goals by exploring the personal loan options available to you. Apply for a personal loan today from Mahindra Finance and embark on your journey towards success!

FAQs

1) Are personal instant loan for students available for vocational courses or skill enhancement programmes?

Absolutely! Personal instant loan for students are not restricted to traditional academic courses and can be used for skill enhancement programs or vocational courses as well.

2) Can I apply for a personal loan for my child's education?

Yes, parents or guardians can apply for personal loans to finance their child's education.

3) What is the eligibility criteria for a personal loan for higher education?

Eligibility criteria vary among lenders but typically include age, income stability, credit 

history, and academic background.

4) Can I prepay my education loans before the completion of the repayment tenure?

Yes, most lenders allow you to prepay your education loans partially or in full after a specific period without any penalty. Prepayment can help you reduce your interest burden and close the loan early if you have surplus funds.