In today’s cut throat competitive environment personal student loans are becoming increasingly popular among Indian students who need financial support to meet their educational requirements and aspirations.
Personal loans for students are versatile tools of financing to meet various education related expenses. Following are a few points to always keep in mind while going for a student loan:
What is a personal student loan precisely?
A personal student loan is an unsecured loan given specifically to finance the education-related cost of applicants. It is contrasted with normal education loans, which are usually reserved for fee payment, a personal student loan can be utilized to pay huge amounts on accommodation, texts, and maintenance charges. Further, a personal student loan also doesn’t need any collateral.
What is the application procedure for a personal student loan?
Taking a personal student loan involves a few simple steps. Students have to hunt for various reputable lenders, check their eligibility criteria, and collect documents like proof of identity, admission letters, and income statements. The lenders then cross-check the details and approve the loan based on creditworthiness and repayment potential after submitting the application.
What are the conditions for eligibility for getting a personal student loan?
Lender eligibility requirements may be different but are generally the age of being 18 or above, having a consistent source of income (parent, guardian or co-signer), and a good credit record. The reputation of the school or college may also be included in the consideration by some lenders when they give out loans. For individual details on this it is prudent to reach out to your respective lender bank or financial institution.
What are the personal student loan interest rates offered by various lenders?
Different financial institutions offer different interest rates on personal student loans along with their associated terms and conditions. For instance, State Bank of India offers interest rates from 8.05% to 11.75% per annum. ICICI Bank offers interest rates of 10.25% per annum. Axis Bank offers interest rates of 13.70% to 15.20% per annum.
It is important to note that these rates are subject to upgrades and change according to the policies of the related bank. Prospective applicants are advised in their own interest to reach out to the financial institution of their choice and clearly understand the terms and conditions before opting for a particular loan product offered.
What are the benefits of personal student loans?
There are a few positive things about individual student loans. They give students immediate availability to funds, and this aids the students in coping with existing expenses quite effectively. The loans come with clearly defined, relaxed repayment terms and no collateral requirements, and thus are available to the majority of students.
Are there any disadvantages that should be taken into account?
Yes, there are possible disadvantages of higher interest rates than usual education loans and shorter loan periods. Students have to balance their budgets and repayment capability before choosing a personal student loan. Paying back on time here is imperative and saves the borrower from paying interest over interest.
Therefore, to conclude, private student loans are a simple financial option for Indian students who aspire to pay for different costs of education. Provided that a person knows the way the loans are structured and what to look out for, students can exercise sound judgment while making decisions to benefit their course of study without being irresponsible in handling their funds.
(Note: Raising a loan comes with its own risks. So, due caution is advised)
