banner image What Are the Eligibility Criteria for Taking a Loan for Education

What Are the Eligibility Criteria for Taking a Loan for Education?

August 18, 2023 • 1805 views

Pursuing higher education often requires a significant financial investment. While scholarships, grants, and savings may help you cover a portion of the expenses, many turn to a Personal Loan to bridge the financial gap. Personal Loan for education is an attractive option that offers flexibility and accessibility to meet various educational needs. But first, you must meet the eligibility criteria. This blog lists the Personal Loan for education eligibility criteria, the benefits of getting a Personal Loan for education, and more. Read on!

What is a Personal Loan for Education?

A Personal Loan for education is an unsecured loan that can help you cover your educational expenses without requiring collateral or a guarantor. It is approved based on factors like your income, CIBIL score, repayment capacity, and financial history. 

Why Take a Personal Loan for Education?

Here are the reasons to opt for a Personal Loan for Education:

1.    All Expenses Get Covered Under One Loan 
With a Personal Loan for education, you have the freedom to divide the borrowed amount according to your needs to cover all study-related expenses. Once your application is approved, you can use the borrowed amount according to your convenience. It may include tuition fees, accommodation costs, travel expenses, library fees, and even purchasing a laptop.

2.    Adjustable Loan Amount and Loan Tenure 
A Personal Loan for education offers you the flexibility to choose the loan amount and tenure based on your budget, overall expenditure, and repayment capacity. The flexible loan tenure allows you to choose between lower interest rates or lower monthly payments based on your needs. However, it's worth noting that a more extended repayment period would result in higher interest rates.

3.    Hassle-free Application Process with Competitive Interest Rates 
NBFCs have made it easier and more convenient to apply for Personal Loans online, with the added benefit of offering competitive interest rates. The entire application process can be completed in just a few minutes from the comfort and privacy of your own home without the need to physically visit the lender's office.

4.    Quick Approval 
Personal loans for education offer quick approval, making it easier and faster for you to access the funds. The best part is that you don't have to worry about providing collateral or dealing with excessive paperwork, which further speeds up the process. If you meet the eligibility requirements, you can receive loan approval within a few hours.

Procedure to Check Eligibility for Personal Loan for Education 

To check your eligibility for a Personal Loan for education, follow these steps.

  • Research Lenders: Identify reputable financial institutions that offer a Personal Loan for education.
  • Visit the Lender's Website: Go to their official website and find the Personal Loan for education tab.
  • Access the Eligibility Criteria: Go through the eligibility criteria and Personal Loan for Education requirements provided by the lender.
  • Use Online Eligibility Calculators: Some lenders have an eligibility calculator that allows you to enter your details and determine your eligibility instantly. The calculator can tell you the maximum amount you are eligible for. 
  • Contact the Lender: If you have any queries or need further clarification, contact the lender's customer support.

ALSO READ :- Check Your CIBIL Score Today To Apply For A Personal Loan

Personal Loan Interest Rates and Tenure to Study Abroad

It's important to keep in mind that the interest rate and tenure of a Personal Loan for Education may vary from lender to lender. It's always a good idea to conduct thorough research on interest rates offered by different lenders before opting for one. However, if you're looking for a reliable loan provider, Poonawalla Fincorp offers a Personal Loan for education with interest rates starting at 9.99% p.a. and a flexible tenure of up to 60 months.

Personal Loan for Education vs Education Loan

Here are some differences between a Personal Loan for education and an education loan:

Personal Loan for Education

Education Loan

Funds can be used to cover costs of housing, food, rent, transportation, books, furnishing, and others.

Usually, it only covers tuition and educational expenses, while you must arrange for other costs.

The reputation/ranking of the concerned University does not play a role. Instead, your credit score, repayment pattern and overall financial capabilities are considered before the loan is granted.

Lenders often shortlist educational institutions and grade them based on their reputation/ranking. So, if your college/university of choice is not on the lender's list of establishments, your student /education loan may not be approved.

Personal loans for education typically have a much quicker application process, and you may receive the funds within a few hours of approval.

Education loans may require more documentation and verification, which can take longer to process and disburse funds.

Personal loans for education are unsecured loans, so you do not have to pledge an asset.

Education loan may be secured or unsecured.

Which One Is Better?

While an education loan can be a good option if you're solely focused on covering your academic expenses, a Personal Loan provides the added flexibility of being able to address other financial needs as well. 
So, if you have additional expenses besides your education, a Personal Loan may be the best choice for you. It's important to weigh the pros and cons of both options carefully and make an informed decision based on your circumstances. In case you decide to get a Personal Loan for education, you can apply now from Poonawalla Fincorp.

How to Apply for a Personal Loan for Education?

Below are the steps to apply for a Personal Loan for education:
Step 1: Click on the ‘Apply Now’ button.
Step 2: Fill out the loan application form.
Step 3: Upload necessary documents.
On successful verification, the loan amount will be disbursed into your bank account instantly.

To Conclude

A Personal Loan for education provides you with the necessary financial support to pursue your academic aspirations. Poonawalla Fincorp understands the importance of education and offers tailored Personal Loans for education to help you fulfil your dreams. By meeting the Personal Loan for education eligibility criteria, providing the required documents, and following the application process, you can access the funds needed to pursue higher education with just a few clicks. 

Frequently Asked Questions

  • What is the maximum amount of Loan I can get when applying for a Personal Loan for education?

Poonawalla Fincorp offers a maximum amount of Rs.30 Lakh for Personal Loans for education.

  • Will I be able to leave India with a Personal Loan for education?

Yes, with a Personal Loan for education from Poonawalla Fincorp, you are free to travel abroad for higher education.

  • What is the tenure for which you can get a Personal Loan for education?

The loan tenure typically ranges from 12 to 60 months. It can vary depending on your lender.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Personal Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply

poonawalla fincorp team

Poonawalla Fincorp Team

Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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