The cost of higher education has inflated exponentially over the past few years. At times, you might face a situation where expending your hard-earned savings may not be the most feasible option to cover educational expenses. If you are a parent and want to finance your child’s higher education conveniently, then opting for an Education Loan may be a good option. In this guide, you will learn seven reasons why you should opt for a loan for education for your child. Read on!
7 Reasons to Consider an Education Loan
Here are seven reasons why you should consider a student loan to meet your personal or child’s educational expenses.
1. Collateral-free
Education loans usually do not require you to provide any collateral. Since these loans are completely unsecured, you don’t need to worry about compromising ownership of assets in case you default on timely loan repayment. Collateral-free loans are particularly feasible when you do not want to risk losing assets in case of unforeseen financial downturns.
2. High Loan Amount
The offered amount of an Education Loan can vary from lakhs to crores depending on the lender. Such a high loan amount is desirable to pay for university fees as well as additional student expenses. This high loan amount without providing any collateral makes a loan for education a highly attractive option for students.
3. Flexible Tenures
Depending on the lender, education loans can be repaid over flexible tenures. Lenders offering flexible repayment tenures allow you to choose the loan tenure while applying. A longer tenure means that the overall interest that you need to pay will be higher. On the other hand, a shorter tenure will mean that the monthly payments will be higher.
4. Quick Disbursal
University admission deadlines do not wait for anyone. Students are often required to deposit fees for the year within a short period of getting accepted. This is where the quick disbursal of an Education Loan really comes in handy. With most lenders offering a digital loan process, you can complete the entire loan journey online. After submitting the application form, your details are verified, and you receive the funds shortly afterwards.
5. Cover Additional Expenses
Student loans can be availed not just to fulfil institutional expenses like tuition fees and study material but to cover associated costs as well; especially if you are studying abroad. A student loan can cover expenses like:
- Accommodation: This type of loan can help you cover your rent and accommodation costs, particularly for students opting for an overseas university.
- Daily Living Expenses: Studying while adjusting to a new city comes with its own set of financial hurdles. Education loans can fulfil your living expenses without any hassle.
- Medical Expenses: Medical emergencies are unexpected, and the costs involved may not always be covered. However, an Education Loan can also help you cover medical expenses without affecting your academic budget.
6. Minimal Documentation
Gone are the days when securing an Education Loan required pages of documentation. Most lenders now only ask for the necessary documents, making the loan application process hassle-free as never before. For collateral-free loans for education, the documentation required is straightforward.
Usually, the following documents will be required:
- Identity proof
- Address proof
- Proof of income
- Employment proof
7. Online Application Process
Most lenders offer a digital application process to avail of a student loan making it easier for you to submit your application from anywhere, anytime. With just a few necessary documents and a hassle-free online process, you can apply for a student loan using just your phone or laptop from the comfort of your home.
Also Read:- Education Loan - Overview, Types, and Process to Apply
Features and Benefits of an Education Loan
Here are some of the most prominent features and benefits of a loan for students:
- Free from collateral; you do not have to mortgage any assets.
- Get a higher loan amount to finance course fees, living expenses, etc.
- Loans at lower interest rates.
- Easy and hassle-free loan application process.
How to Apply for an Education Loan
Follow the steps mentioned below to apply for a loan:
- Step 1: Click on the ‘Apply Now’ button and open the application form.
- Step 2: Fill up the required details like your DOB, PAN card, monthly income etc. and attach the necessary documents.
- Step 3: Upload the necessary documents and click on the ‘Submit’ button.
Upon successful verification, the required loan amount will be deposited into your account.
Things to Keep in Mind While Applying for an Education Loan
Before applying for a student loan, you must keep in mind the following points:
- Analyse the cost of education
- Compare the interest rates
- Choose the right repayment strategy
- Check the eligibility criteria of the lender
- Loan disbursement process
- Calculate the future earnings to determine the EMIs
- Check for any hidden charges
Also Read: What Are the Eligibility Criteria for Taking a Loan for Education?
To Conclude
With the rising cost of higher education, an Education Loan
provides a straightforward and hassle-free option to arrange for
funds. Whether you are funding your own higher studies, or your
child’s education, a loan for education with a high loan amount allows
you to cover multiple associated expenses.
Poonawalla Fincorp’s
newly launched hassle-free student loan provides up to ₹1 Crore loan
amount without any collateral. You can also opt for up to ₹3 Crore
loan amount by pledging a collateral subject to relevant terms &
conditions. Simply complete your application online on the Poonawalla
Fincorp website and fulfil your higher education costs conveniently.
Frequently Asked Questions
- What documents must I submit to avail of an Education Loan from Poonawalla Fincorp?
To avail of an Education Loan from Poonawalla Fincorp, you must submit your KYC documents, admission letter & academic documents. In addition, co-applicants must also provide their own KYC documents, employment proof and necessary financial documents.
- How much Education Loan amount can you get from Poonawalla Fincorp?
You can get up to ₹1 Crore of Education Loan without any collateral from Poonawalla Fincorp. We also offer a higher loan amount of up to ₹3 Crore in case of a secured loan for education.
- Who is eligible to avail of the Personal Loan for education from Poonawalla Fincorp?
Parents, parents-in-law, siblings, your spouse, your first cousins, your parents' siblings can be your co-applicants. You can add up to 5 co-applicants on your education loan.