Pursuing higher education, especially abroad, can be an expensive affair. However, availing a personal loan can quickly provide the necessary finances required to fund your higher education.
When you apply for a personal loan instead of an education loan for studies abroad, you can avail it without any collateral. Also, since there are numerous financial institutions in India offering personal loans, availing it has become quite simple.
Below is a checklist of everything you need to know about how you can avail a personal loan to finance your higher education.
How Can Personal Loan Help to Finance Your Education?
A personal loan as opposed to an education loan for abroad is a type of unsecured loan that can be used to fulfill various financial needs. For instance,
- Travel plans
- Wedding expenses
- Consolidation of prior debts
- House renovations
- Funding for business
- It can help in paying out your student debt
These are some of the instances for which you can make use of a personal loan.
However, availing a personal loan for higher education is different from availing an education loan for studies abroad. For instance, when you avail a personal loan for higher education, it does not require collateral. Also, a loan for education can only be used entirely to finance your education. But with a personal loan, you can use it to meet various other expenses related to your higher education like hostel fees and travel costs. A good education can clear the path to a successful career.
How To Avail a Personal Loan For Your Education?
The process of availing a personal loan in India is simple. With financial institutions giving instant approvals and quick disbursal benefits, you can avail a loan to finance your higher education without any hassle. However, there are a few things that you should bear in mind before applying for the loan. These are-
Have an estimate for your expenses
Seeking higher education, especially abroad is quite costly. Apart from your tuition fees, it also brings about various additional expenses like travel costs, boarding or lodging cost, cost of study materials, etc. It is crucial to have an idea about the expenses you will incur while you are studying to determine the loan amount you need to avail. Having an estimate helps you calculate personal loan EMI before availing the loan.
Check whether you are eligible
There are several eligibility criteria that you should comply with to ensure that you can avail the personal loan for higher studies. For instance, to avail the loan, you must be between the ages of 23 and 55 years, a resident in India and must be salaried or self-employed. You can also know the amount you are eligible to avail as a personal loan by using a personal loan eligibility calculator.
Decide the tenor
Personal loans come with flexible tenors. Thus, you can choose the repayment time according to your convenience. It is not an easy task to effectively manage your finances as a student. That is why you should choose a tenor which will allow you to repay your loan comfortably.
To make sure that you choose the right tenor, you can calculate your EMI amount beforehand. You can use an online EMI calculator brought by financial institutions like Bajaj Finserv to calculate the EMI you will need to pay and plan your future finances better.
Additionally, they also bring pre-approved offers thereby fastening the process of loan approval. These offers are available on unsecured forms of credits like business loans and personal loans apart from the secured ones. You can check your pre-approved offer by providing your name and phone number.
What Are The Benefits of Taking a Personal Loan For Higher Education?
Some of the benefits of taking a personal loan as opposed to an education loan for abroad studies are-
- You can avail a higher amount of loan value with a personal loan. Some institutions like Bajaj Finserv offer personal loans amounting up to Rs.25 lakh.
- Personal loans come with instant approval and quick disbursal.
- You can use the loan to finance other aspects of your studies abroad, unlike an education loan.
- They come with flexible tenor making it easier to repay the loan.
Therefore, availing a personal loan can make it significantly more comfortable for you to pursue your higher studies, especially outside India. However, make sure you comply with the eligibility criteria before applying.
