Most people who want to study in a good and prestigious institute often need good financial support. With the help of personal loans for students, people can fulfill their dream of studying at the institute of their choice.
Let us take a look at how students can get a personal loan.
Over the years, the cost of education has increased a significant amount. This is why many students can’t opt for their choice of subject to study in the university. But nowadays, with the help of personal loans for students, they can study in the institute of their choice. In this article, we will talk about how to apply personal loan and other things.
Can a student get a personal loan?
Many people often have a misconception that students do not qualify to get student loans. But in reality, students can also apply for personal loans if they meet the eligibility criteria and have the required documents. With the help of this personal loan, people can finance their education domestically or internationally.
Features of personal loans for students
Let us now look at the features of personal loans for students.
- The maximum loan amount that students can get a personal loan is Rs. 15 lakhs.
- This personal loan is best for short-term courses and vocational courses.
- People can enjoy flexible loan tenure that varies from 1 year to 5 years.
- You have the benefit of deduction under Section 80E of the Income Tax Act on the interest you paid for the loan.
- With the help of a personal loan, you can pursue higher education.
- In case you are taking a loan for up to 5 lakhs, you don’t have to provide any collateral.
- This is an alternative to other forms of credit.
What are the eligibility criteria for a personal loan?
It is important to know about personal loan eligibility criteria. Let us take a look at the eligibility criteria for students.
- The applicant must be between the age of 21 to 63 years.
- One has to show a minimum work experience of one year.
- The CIBIL score or credit score should be 750 or more.
- Those who are self-employed need to provide proof of income through income tax returns filed.
- If you are a salaried employee, you need to show your bank statement and salary slip.
- You need to meet the minimum salary criteria of the lender.
What are the documents required for a personal loan?
If you need the eligibility criteria, you need to have all the required documents next when it comes to getting a personal loan. Let us take a look at all the documents that you need when applying for a personal loan.
- Identity proof: Aadhaar card, PAN card, Voter ID, Driver’s license
- Address proof: Aadhaar Card, Voter’s ID, PAN Card, Driver’s license, utility bills (Gas, phone, electricity)
- Salary slips for salaried person.
- The bank statement for the last three years.
- Two passport-size photographs.
- The businessman has to show a business registration certificate and an audited financial statement.
Before you apply for a personal loan for students, it is important to estimate the right loan amount you need to study the subject if your choice. Next, you should make the right calculation and opt for the right repayment tenure. Lastly, make sure to check the rate of interest. When you take a loan, the lender takes a risk, and in return, they charge interest on the loan amount. But it is important to check whether you are paying the correct interest and not more than the desired amount.
