Higher Education Loan: Apply for Personal Loan for Higher Education Online

In recent times, the cost of higher education has been rising. Parents are turning to personal loans for education to meet these costs. An education loan can help meet the expenses of higher studies. But if a student does not meet the eligibility criteria, then a personal loan is a better option. Many banks offer personal loans for educational purposes. It is better to take personal loans for students. Any member of the family can take the loan for educational purposes. 

There is a difference between a personal loan and an education loan. The latter carries a lower rate of interest. Also, one can get tax advantages on an education loan. Also, the principal borrower gets enough time to repay the debt. But in the case of a personal loan, the loan repayment begins the very first month after the borrower receives the money. But there are many benefits to a personal loan for education. 

Benefits of a Personal Loan for Students Who Want to Pursue Higher Education

For students who want to pursue higher education, a personal loan holds many benefits. Let’s take a look at some of them.

1. There is no restriction on the use of the funds. A personal loan for education can be used for any educational purpose. So, if someone takes a personal loan for education, they can use the funds for educational expenses, housing costs, tuition fees, and more.
2. One can get quick approval for the loan. Very few documents are needed for the approval of the loan.
3. One can take a personal loan to cover the entire cost of education. In contrast, a student loan requires that they contribute a significant portion of the total cost of education. So, personal loans for students are far more convenient. 
4. Since personal loans are unsecured loans, one does not need to pledge any assets to secure the debt. 
5. Many banks and NBFCs are willing to offer personal loans for education for a term varying from 12 to 60 months. So, it is easy to choose a tenure that is convenient for the borrower. 
6. One will be able to receive the disbursed amount in their account quickly. 

Following these advantages, personal loans for students are highly preferable. 

Documents Required for Personal Loans 

Many lenders offer personal education loans based on minimum documentation. If someone is applying for one such loan, then they will have to furnish the following documents. 

• Bank account statement for the last three to six months. 
• Proof of address: This includes telephone bills or electricity bills. They can also furnish a voter ID, Aadhar card, driving license, or passport for the same. 
• Proof of identity: This includes a passport, driving license, and Aadhar card. 
• Proof of age: This includes their birth certificate or education certificate. 
• The most recent salary slips. Or, they can also furnish the latest return of income tax. 

Other than these documents, the bank or lender may require several other documents. It is best to inquire with them about the documents that the borrower needs to furnish. 

Eligibility Criteria for Personal Loan for Students 

Anyone can apply for a personal loan for educational purposes. It is different from an education loan. If someone needs a personal loan for education, they should start by checking their eligibility. 

• They should be Indian nationals. 
• Their age should be between 21 to 67 years. 
• They should have a good credit history. A credit score above 750 is considered good. 
• They should be employed by a public, private, or MNC organization. 
• They should be earning a minimum of INR 25,000. The amount may vary depending on where they stay. 

Process to Apply Online for Personal Loan for Education 

The bank will verify all the applicant’s details. A borrower can avail a personal loan from the bank only after they are satisfied with their credentials. After the due process is complete, the funds will be disbursed directly to their bank account. Many banks now offer an online facility to apply for personal loans for students. However, many banks do not. So, they will need to check which service their bank offers. 

Here are a few basic steps to applying for a personal loan online. 

1. The first step is to choose a lender. Every bank or NBFC offers a different type of service. Look around for the best deal based on the borrower’s requirements.
2. The bank may offer online or offline services. Depending on that, fill out an application form. The borrower will need to provide several details on this form. Based on this, the bank will decide if it will give them a loan. 
3. After filling out the application form, the borrower will need to provide their documents. These include income proofs, address proofs, identity proofs, and more. 
4. The documents and application will be verified by the bank. Only after they satisfy the bank’s requirements, their loan be approved. 
5. When the lender approves the loan, it will reflect in the bank account. 

To know more about a personal education loan, one must consult their lender. 

Conclusion 

Personal loans for education are a clear win. One can easily apply for a personal loan for education. It will help them meet the expenses of higher studies. It is a useful option for those who want to go outside India for their studies. In that case, the expenses are numerous. A personal loan can help meet most of them.

If someone wants to understand anything about personal loans for education, then visit Piramal Finance. It is a premier hub for all financial knowledge. They can even check their lending offerings. It is the best place to look for the best loan options. This way, they can find one that is most suitable for them.