Personal Loans fund your higher education and other necessities such as medical expenses, weddings, home improvement, business expansion, etc. Several financial institutions in India offer low-interest Personal Loans to help students pursuing graduation and postgraduation meet their expenses. If your education loan gets rejected, you can apply for a Personal Loan as a student. Here are some suggestions and tips that might help you to acquire a Personal Loan if you are a student:
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Apply with a Co-applicant
A student must have a regular source of income to qualify for a Personal Loan, so a student who is not working can add a parent as a co-applicant. It will increase the possibility of loan approval. In addition, since it comes under the unsecured loan category, the applicant does not need to offer any guarantee or collateral and can utilize the money as per the requirement.
The regular interest rate for a Personal Loan for students in India may start from 8.45 per annum with a maximum repayment duration of 60 months.
The applicant must qualify the following eligibility terms and conditions-
- The applicant must be at least 21 years old
- If the loan amount exceeds the prescribed limit, you would require some collateral to secure the loan
- The co-applicants income should be within the minimum limit prescribed by the lender
- The student must take admission to a preferred course before applying for the loan
- Applicants must submit the following documents to the lenders
- Identification proof, age proof, address proof of the student and the co-applicant
- Proof of income of the co-applicant
- Copy of bank statements of the student and co-applicant
- A copy of the admission letter from the respective college or university
- Copy of the Visa and Passport (in case of students going abroad)
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Count Your Expenses
The first important step is to know about all your expenses, including accommodation, travel, tuition fee, moving costs, etc. If you are going abroad, you must contact any of your acquaintances or other students living there to obtain information. It will help you get an estimated living cost at the new place. It also applies when moving to a new city within your own country. Having complete knowledge about the cost involved in the process helps you apply for the exact loan amount you require for the purpose.
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Eligibility Conditions
You can find information online about various financial institutions offering low-interest Personal Loans with flexible repayment options. Always look for the lowest EMI levels to avoid disrupting your budget while comparing the interest rates and repayment durations. The loan amount and eligibility criteria vary according to lenders. Ensure that you fulfill all the requirements and have all the necessary documents to apply for the loan.
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Choose Your Repayment Schedule Diligently
You should go for a lender who offers a flexible repayment schedule since this will decide your EMI amount. A high EMI can impact your monthly budget, so choose a repayment term that suits your needs. So go for an EMI that you and your parents or spouse can afford comfortably.
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Submission of Your Application
Though low-interest applied personal loans for students require minimal documentation, some lenders offer pre-approved loans to their existing customers. You can check their websites and apply as per your requirements.
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Spend the Money Wisely
Once you get the money into your account, try spending it judiciously. Never spend money on buying things that you do not require at the moment. Prioritize your spending. Utilize the money on your basic expenses.
Conclusion
A Personal Loan can cater to a student’s various expenses like travel, books, accommodation rental, etc. Moreover, sometimes a student may face some personal emergency. A Personal Loan can come to the rescue in such situations. So, research and choose the best low-interest Personal Loan to fulfill your requirements.
