Step by Step Guide: How to Avail a Personal Loan for Education - Loan Trivia

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Friday, 27 December 2019

Step by Step Guide: How to Avail a Personal Loan for Education

Education Loan

Availing a personal loan for education is one of the ideal ways to finance your abroad studies. The expenses required while you stay outside your country to pursue your education can require substantial finances and here is where some of India’s leading NBFCs and financial institutions come to the forefront.
You can use any required amount of up to Rs.25 lakh over a prolonged tenor of up to 60 months to meet your financial requirement. Shared below are the steps that you are required to follow while you avail advances.

Step.1 Meet the eligibility criteria

To avail a higher education loan, you are required to qualify for the credit by meeting its eligibility criteria as given below –
  • Applicant must be between the ages of 23 and 55 years.
  • Applicant must have a regular source of income with a considerable salary.
  • Be employed under an MNC, private or public company.
  • Be a resident of India, residing in any of the cities where the lender would operate.
Besides, your CIBIL score is important for personal lending for education. You are required to maintain a credit score of 750 or above to secure instant approvals and faster disbursal.

Step.2 Keep the required documents handy

While you apply for a personal loan for education, you will be required to submit a set of documents. Thus, it is essential that you keep the documents listed below to ease the process of application.
  1. KYC documents
  • Aadhaar card.
  • Voter ID.
  • Passport.
  • Driving licence.
  1. Address proof
  • Electricity bill.
  • Water bill.
  • Gas bill.
  • Telephone bill.
  • Ration card.
  1. Income proof
  • Salary slip.
  • Account statements (preferably for the last 3 months.)
  • Income tax returns.
Besides, you will also have to provide your employee ID card and your passport-size photographs.

Step.3 Know the interest rates

While you avail a personal loan for education, it is advisable to know the interest rate to estimate the cost of your loan.
Leading NBFCs like Bajaj Finserv offer personal loan for higher education at attractive interest rate against minimal documents and is a host of other benefits.
They also bring you pre-approved offers in an attempt to reduce the hassle of the application process. These pre-approved offers are available on various financial products such as home loans, personal loans, business loans, etc. You can take a look at your pre-approved offer by sharing minimal details like your name and phone number.

Step.4 Apply for the loan

Once you meet the personal loan eligibility and have the required documents with you, consider the steps mentioned below to apply for personal loan for education conveniently.
  1. Access the official website of your lender.
  2. Check if you are eligible for the loan. You can use a personal loan calculator for eligibility to check if you qualify.
  3. Fill an online application form with your financial and personal details. The common details that you are required to share are – name, phone number, email ID, annual income, residential address, date of birth, etc.
  4. After your application has been approved, a representative will get in touch with you to take you through the process.
  5. Submit the documents mentioned below to proceed with the application process.
Once your documents are verified, the pre-sanctioned loan amount will be credited to your bank account directly within 24 hours.
Additionally, you are also required to share the required loan amount and the loan tenor you are comfortable with while you apply. Before you decide the loan amount, consider analysing your stable source of income and your repayment capability.

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