Want a life-changing experience of studying abroad but don't have enough resources? Craving for your academic and professional development but lacking funds? A personal loan for education can help you achieve your dreams and have a successful professional life ahead. While the benefits of networking around the world and an engaging social life are lucrative, studying abroad offers more academic, cultural, and career opportunities. Choosing the right study program will benefit your life in ways that you could not have imagined.
According to a RedSeer report dated September 2021, the number of Indian students opting for higher education abroad increased from 440,000 in 2016 to 770,000 in 2019 and is expected to increase to around 1.8 million by 2024, resulting in increased spending on higher education abroad
What Is a Personal Loan for Education?
A personal loan for education is an unsecured loan that you can take out to cover your educational costs. This type of loan does not require any kind of security, collateral, or guarantor. Lenders provide them based on your income, credit score, repayment capacity and financial history. The payback period starts one month after you take the loan. These loans can help you pay for your international study expenses by providing an easy loan application and quick loan approval.
Why Take a Personal Loan For Education?
- All expenses under one loan
A personal loan for education covers all expenses related to studies abroad. You can use your loan money to pay for library fees, books, travel, laptop, housing, health insurance, and other miscellaneous expenses in addition to tuition. While an education loan covers expenses that are limited to tuition and educational fees only, a Personal Loan taken for education can cover many more expenses.
- Adjustable loan amount and loan tenure
You can choose a flexible payback term and loan amount for a personal loan based on your budget, overall expenditure, and repayment capacity. You can estimate your EMI using the Personal Loan EMI Calculator and choose a loan tenure with EMI that you can comfortably afford.
- Hassle-free application process with good interest rates
NBFCs these days have made it extremely easy to apply for instant personal loans online with attractive interest rates. Simply visit the lender's website, fill out the loan application form, and provide the required information, and you're done. You don’t have to visit the lender's office even once. The entire loan application process can be completed in minutes from the comfort and privacy of your own home.
Documents required for a personal loan for higher education:
- Passport size photo
- Form 16 and IT Returns
- PAN card copy
- Identity proof (Driving License, Passport, Aadhar Card)
- Proof of address (driving license, passport, electricity bill, telephone bill)
- Bank statements for the last 6 months
- Filled and signed loan application form
Salaried employees will be required to submit salary slips for the last 3 months, a letter mentioning the date of joining the organization and bank statements for the last 6 months indicating the salary credits.
Self-employed individuals need to submit IT returns for the last 2 financial years, audited balance sheets for the last 2 years, bank statements for the last 6 months and the latest turnover documents.
If you are a student and choose to use this method of funding, we recommend applying for it through a parent or family member who has a stable source of income. This is because one of the main eligibility criteria for a personal loan is that the applicant must have a stable income source to be able to repay the EMI.
- Quick approval
In the case of online applications, technology streamlines the entire application process. As a result, you can get approval in just a few minutes. Due to a lack of collateral and paperwork, the process has been expedited even further.
- Make sure you qualify
Use the personal loan eligibility calculator to see if you are eligible for the amount you need.
- Decide on the term of the loan and how much you will have to pay
Take a personal loan from a lender that offers flexible repayment terms, as the number of your monthly payments will be determined by the term. Remember that your earnings as a student may be less than your earnings as a professional. Your biggest need is affordable EMIs.
- Create an application
Minimum documents are required for a personal loan. Contact your lender and make sure you have all the required documents. You may not even need the paperwork if you are an existing customer.
- Personal Loan Interest Rates and Tenure
One of the best advantages of a personal loan is that you get financial assistance at very good interest rates and nominal charges. Also, you can choose to repay the amount within a flexible loan repayment tenure of up to 60 months. Your monthly instalment depends on the loan amount, the interest charged on it and the tenure chosen by you. The longer the tenure, the lesser amount you must pay every month. However, a longer term will incur higher interest charges and vice versa.
Why Prefer a Personal Loan for Education Over An Education Loan?
One of the most significant disadvantages of a traditional student loan is that it usually only covers tuition and educational expenses, leaving you on your own to arrange for other expenses. As a result, a personal loan may be more financially favorable than a student loan for overseas study to cover all your living expenses, such as housing, food, and other costs.
The term "personal loan" refers to a loan that is not made for a specific purpose. Unlike a home loan, vehicle loan, or even a school loan, a personal loan can be used to pay off almost anything. It can be used for a variety of things, including paying higher education fees and addressing other expenses like rent, food, transportation, books, and furnishings. On the other hand, when you take out student loans, you are legally obligated to spend the money only for educational purposes, such as tuition payments.
Also, sometimes lenders shortlist educational institutions and grade them based on their reputation or ranking. If your college or university is not on the lender's current list of establishments, you may not be eligible for student loans to study abroad or education loans to study abroad. Also, some lenders will check the student’s educational background while granting education loans for study abroad.
As a result, personal loans for education are always a better option than student loans for international studies. This will allow you to keep track of all your daily costs without any hassle. The best part is that personal loans are unsecured, which means that you do not have to keep any assets as security.
With an easy application process, quick approval, affordable interest rates and flexible tenure, a personal loan will help you fulfil your dream of pursuing higher education abroad without any hassle. Choose a Poonawalla Fincorp Personal Loan for your higher education and to achieve your education-related goals with ease.