Personal Loan For Students | Benefits, Eligibility, How To Apply Student Personal Loan in India

Personal Loan For Students | Benefits, Eligibility, How To Apply Student Personal Loan in India

Personal Loan For Students: As we all know the education cost is rising day by day and students find many obstacles like financial problems while they are aspiring to study in higher grades. And if we talk about a developing country like India most of the students belong to middle class families and they are not able to afford the high cost of education.

Personal Loan For Students: So there is a need for kind of loan so that all these burdens can be minimised. Firstly students must know about the basic difference between personal loan and the educational loan. Educational loans is only meant for full feeling the tuition fees of an institution where as the personal student loan is helpful in full filling the needs of our day to day student life. Students can use personal loan in a variety of ways like using it for various educational needs like using it to purchase their books, accommodation, notebooks, transportation, etc. In India, a personal loan for student is provided by the banks or non banking financial companies.

Personal Loan For Students- Overview 

Who can avail this facility:—

To take benefit of student person loan, a student must satisfy some requirements.

Personal Loan For Students: Students who are above the age of 18 years can avail the facility of personal loan. Secondly, he/she must be an Indian candidate. If you are an NRI, then you can reach to some specific banks that provide loans for NRI under special conditions.

Some banks require that their parents/siblings should have a steady income. Since personal loan is unsecured loan, there is need to check the credit score of the applicant. If credit score is high, there is higher possibility of approval of the loan.

What kinds of Documents you must have?

For availing this benefit, you must have following documents ready with you.

These documents include :—

• Identity Proof : like Adhar card, PAN card, passport, or driving licence.
• Residence Proof : like Utility bills, rent agreement,
• Proof of Admission: from a recognised university/institution
• Income Proof: like ITR receipt, latest salary slips of co-applicant.
• Co-applicant details : Proof of Income, KYC Id (like voter ID, passport, Adhar card)

How can we choose the best lender ?

Students must take into consideration some factors before applying for personal loan.

Personal Loan For Students: Firstly, student must try to compare the interest rates of various Banks. Usually personal loans have higher interest rate than other kinds of loans. The interest rate can range between 10 to 20% depending on different Banks.

Also check the repayment period of the loan so availed. Some lender offer 10 years up to 5 years for the repayment. You should also look for the processing fees and the processing time in setting the loan. Understand the full terms and condition before applying because sometimes it happens that Bank impose some penalties on repayment before the tenure time.

How to Apply for student’s personal loan?

Step 1: Visit the website of the bank from which you want to avail loan. Fir example, if you want to take loan from SBI bank, click here on this link – https://sbi.co.in/web/personal-banking/loans/personal-loans

• If you want to take loan from HDFC Bank, click on this link:— https://v.hdfcbank.com

Step 2 : Fill the Application form for the loan. Enter the required details like Name, age, education, required loan amount, income, etc.

Step 3 : Submit the Application.

Upload necessary documents and finally submit it. You will receive the credit score and the decision of the bank (lender) about whether you can take loan or not.

Step 4: Verification of the details

Your documents and the details would be verified by the lender. They may contact you for verification of your identity, educational qualification, and the income.

Step 5 : Loan allotment-

After the complete process, if everything goes well, you will receive your loan amount. The process of loan allotment usually takes a few working days.

Conclusion :—

In India, most of the students face financial problems during their academic journey. Therefore, along with the educational loan, person loan also serves as a helping hand to the students. There are some eligibility criteria that must be fulfilled in order to take student’s personal loan from different banks. Choosing the right Bank is also very important because different banks have different terms and conditions for loan provision. Always try to compare different banks and understand the tenure of repayment. And finally after the loan approval, you must use it in judicious way, so that your education journey keeps smooth.

Important Link 

Disclaimer:—

The content provided above is based on the general information gained from various sources. This website does not provide you any financial advice. Rather, it is for informational purpose only. The reliability and truth of the content must be verified on the official websites of the banks. Also, for better advice, you must visit financial advisor in the matters related to finance. The author and the website owner does not hold any responsibility of any financial action taken by the readers.