A Personal Loan is different from other Loans, like Home Loan, Vehicle Loan, etc. The Banks and Financial Institutions offer money as Personal Loans to individuals, to tide over the financial crunch met by the borrower. If the Loan is required for a Student’s education in India, it is a Personal Loan offered for the purpose, but different from an Educational Loan offered by Banks.
This concept of lending Personal Loans for Students for studying a Course in a College or University is a new one, Banks have started to provide. It is very helpful among personal loan plans online, for those who want to study different Courses and seek a wonderful career for the future.
As of today, Education has become expensive to include various expenses, other than Course Fee. So, the Student can include in the Personal Loan application, expenses like travel to and fro the Institution, moving expenses, accommodation, books, and other incidentals, unlike an Education Loan.
The Eligibility conditions are – the applicant must be between 16 and 35 years of age and must have passed Higher Secondary Course. The applicant can include Parents or spouse as Co-applicant. The income of the Co-applicant should meet the specified conditions of the lending Bank.
The applicant must have secured Admission to the concerned course and submit proof for the same along with the application. Bank Statement and other Income Proof etc. must be attached to the application.
In the interest of the Student desirous of applying for Personal Loan for Education purposes, the following tips are given by experts in the field:
- Make a thorough search online, to select the right Institution which is ready to provide the loan amount required for.
- Check the Terms and Conditions and Rate of Interest, since different Institutions offer different rates. Select the most advantageous one for you.
- You should decide beforehand the tenor of repayment and then only apply for the loan, for convenient repayment without stress. This is important, as in the case of home loan plans online different repayment periods are available.
- Some banks ask for Collateral Security, if the amount of loan exceeds certain limit. So be prepared for this condition to provide suitable Security, in case of need.
- Always be cautious that the amount secured as Loan should be spent only for the purpose it is obtained, and not otherwise. You will land into trouble, if this cautiousness is not there and be mentally ready to repay the Loan honestly within the specified period.