Student loans have become an invaluable resource for students who intend to pursue their education abroad. Students who want to further their education by moving to a different location within India or even outside of the country can apply for a personal loan in India. Availability of student loans has made it possible for individuals from a variety of economic backgrounds to further their education and gain admission to the university of their choice.
Students who desire to study but cannot afford such a course can benefit from personal loan for students that are available to them by various banking and Non-banking financial institutions. Almost all of India’s major banks offer instant personal loan for students. The loan amount depends on the college and the course the student is enrolled in. There is a major advantage of personal loan for students: they can be repaid a year after completing your study or after getting employment, whichever comes first.
There is a big difference between a personal loan and an education loan. The Personal Loan can be used for various purposes, including your education or the education of a member of your family. If you are pursuing your studies, a Personal Loan without security is also the best option, as the repayment period is less stressful. The purpose of personal loan for students can only be used for the purpose of study only.
Overview of student loan
Student loans are loans taken to finance post-graduation studies and associated costs, such as tuition, books, and living expenses. Due to their low-interest rate and deferred payment schedules, these loans are different from other types of loans in that the payment doesn’t begin until the student graduates from college. A few student loan schemes also cover travel expenses for abroad studies, study tours, and the cost of a two-wheeler.
Student Personal Loan Eligibility Criteria
To get a personal loan for students from a financial institution or bank, the applicant must meet student eligibility for personal loan and know-how to complete the personal loan application procedure. Below is a list of general requirements for student loans:
- Applicant should be an Indian citizen.
- The applicant must be between the ages of 16 and 35 years of age
- If you want to apply for a personal loan for student then it requires a co-applicant.
- If an individual borrows more than the amount specified, collateral will be required as security.
- The salaries of each co-applicant must meet the minimum salary requirements that the banks have specified.
- The applicant must be enrolled in a course or college to be eligible for a loan.
Student personal loan interest rates
Compared to home loans, personal loan for students have slightly higher interest rates. Although interest rates vary from bank to bank, they are usually between 11.75 percent and 14.75 percent annually. A student who is enrolled in a top university such as IIT or IIM might be able to obtain a personal loan for students with a lower interest rate. In some public sector banks, the interest rate for female applicants is lower than for male applicants.
Advantages and features of a student personal loan
- It is possible to achieve your career ambitions by paying for your education expenses with an education loan.
- The process of obtaining personal loan for students is a simple one. There are no strict requirements that have to be met. It is for this reason that this loan is so popular.
- Student loans are an excellent substitute for other types of borrowing, such as personal loans. The interest rates on student loans are lower than those on personal loans, and the terms and conditions are less restrictive.
- The most important part of an personal loan for students is that the student starts repaying the loan once the educational course has been completed. This means that the student loan might be delayed until the applicant earns money within a specified time.
- The student loan helps the borrower manage educational costs and provides tax benefits. The Income Tax Act allows you to deduct interest paid on student loans under section 80E.
- The existence of education loan in a family may impact the acquisition of additional education loans in that family.
As compared to personal loans, personal loan for students generally have a lower interest rate and are generally easier to get, even if there is little or no security. In India, almost no financial organization does not offer personal loan for students. This type of loan can be used for a wide range of professional courses, such as post-graduate degrees in management, engineering, and doctors. There are also loans available for part-time courses and vocational courses.