How To Get Personal Loan For Students In India?

Quality education comes at a cost. There is a rising need for skilled people and a good formal or vocational education can give a great start to your career. While most may worry about the associated costs and expenses, you don’t have to if you have the right financing option in your hands. Personal loan for students act as an enabler to assist students get quality education and meet related expenses. Let’s understand what are personal loans for students and how to get personal loans for students.

What is a personal loan for students?

A personal loan for students is basically an unsecured loan that is granted to assist students meet their cost of education. This can help them meet their education i.e., school and college fees, hostel and stay expenses, cost of books, and other related costs.

Requirements to get personal loans for students

Here are the requirements you need to fulfil to get a Personal Loan for Students in India:

• Good CIBIL score: You need to have a good CIBIL score in order to get loans for college students in India. A CIBIL score above 700 is generally considered optimal. The higher the score, the easier it will be to avail of a personal loan.
• Eligibility criteria: You need to fulfil the lender’s eligibility criteria in order to get a personal loan. This normally includes citizenship, age criteria, income criteria (if any), and any other criteria that the lender may place. 
• Proper documentation: You shall provide proper documentation to ensure the smooth processing of your student loan application. The documents required normally include your KYC details i.e., your PAN card, Aadhaar card, etc., address proof, bank statement, income proof, education or programme details, and any other document as may be required.

Perks of Using Personal Loans for Education

Here are the following benefits of using loans for college students to finance your education:

• Unsecured loans: Personal loans are unsecured in nature. Thus, you don’t have to pledge any asset or collateral security to get a personal loan for education. This brings in a sense of relief that your assets aren’t at risk.
• Quick processing: Personal loans for college students are processed quickly by banks and financial institutions. You can expect the sanction and disbursement in a few days to 1-2 weeks at maximum.
• Simple eligibility: Personal loans are simple financing instruments and therefore, come with simple to fulfill eligibility criteria. This makes the processing and approval a lot simpler and quicker.
• Flexible terms: Personal loans offer you flexible repayment options. You can decide the tenure based on your needs and budget, thus relieving your finances.
• Affordable option: Student loan rates are quite affordable, thereby allowing you to get quality education without any hassle.

How to get personal loan for students?

If you wish to apply for a personal loan, then you should follow the below steps:

• Select the Right Lender: It all begins by comparing and selecting the right lender. Selecting the right lender basically involves checking the student loan rates, other costs, eligibility criteria, etc.
• Determine the loan amount: You need to determine the loan amount you need for education purposes. Ensure to consider all the costs like school/college fees, travelling, stay, food, books, etc. that you may incur.
• Decide on the tenure: Decide the tenure within which you are willing to make repayment. You should select the tenure that doesn’t strain your finances while just long enough so you don’t end up paying hefty interest.
• Gather all documents: Once you finalise the lender and know the eligibility criteria, you know all the documentation requirements. Start gathering all the documents to fulfil the eligibility criteria.
• Submit the student loan application: Once you complete the above steps, you can proceed with submitting the student loan application and all the relevant documents. The lender will process the application and decide on the approval or rejection thereof.

Points to remember

While applying for the Personal Loans for Students, keep the following points in mind:

• Compare different lenders before applying.
• Use the Personal Loan EMI calculator before deciding on the amount and tenure.
• Check for associated charges like prepayment charges, processing fees, etc.
• Check the repayment terms.

Choosing the right lender

Choosing the right lender is important for seamless student loan application and approval. Further, you can get Personal Loans for Students at a much more affordable student loan rate if you go with the right lender. Mahindra Finance is a pioneering institution that can help you get wings with the right education. With simple to fulfil eligibility criteria, affordable interest, and flexible terms, you can get Personal Loans for Students instantly.

Frequently Asked Questions

Q: What are the other charges apart from interest on Personal Loans for Students?

A: Apart from interest, other charges applicable on loans for college students include processing fees, administration fees, pre-payment charges, etc.

Q: Are personal loans right for financing education?

A: Personal loans are one of the most affordable and popular financing options to finance your education.

Q: How interest rate is determined for Personal Loans for Students?

A: Personal loans for students vary across different lenders and depend on the applicant’s profile. However, they are quite affordable for students who wish to pursue quality education.

Q: What should I check before applying for Personal Loans for Students?

A: While checking for Personal Loans for Students, you should check the eligibility criteria, documents required, interest rates, and other charges.