Quick Ways To Know About A Higher Education Loan

 

The demand for quality education in India has risen sharply in the last few years, alongside the accompanying expenses. Financing higher education, nowadays, is a costly affair that only a few can afford, while the rest are forced to liquidate their savings. 

To offer relief to students or their parents, financial institutions now extend lucrative higher education loans. As per a recent report, in the last 12 months through September 2020, lenders disbursed education loans worth Rs.11,000 crore. The same report also noted that more than 3 lakh new loan applications were submitted between March and September 2020. 

Therefore, individuals looking to avail financing for higher education must gather ample information about this advance to keep their savings intact. 

What is a higher education loan? 

Although a higher education loan can be both secured and unsecured, most individuals prefer the latter, especially in the form of a personal loan. The credits extended under a personal loan are collateral-free and come without any end-usage restrictions. Thus, individuals can utilise the funds to finance their education within the country or abroad with ease. 

Besides, a personal loan accompanies a host of features and benefits, making it one of the most sought-after borrowing solutions. 

 Why is a personal loan the best as a higher education loan? 

Following are some of the personal loan features that you can utilise to fund your higher education. 

• Availability of higher amount 

Be it admission fees to accommodation expenses, a personal loan for higher education is the go-to solution. Selected financial institutions like Bajaj Finserv extend funds up to Rs.25 lakh, which is sufficient to address any ensuing expense. 

The NBFC also extends pre-approved offers that expedite and simplify the loan application process. Such offers are also available on a range of financial products like personal loans, business loans, credit cards and many more. You can check your pre-approved offer simply by entering your name and contact number. 

• No guarantor required 

Conventionally, a loan for abroad studies requires a guarantor or a co-applicant. However, a personal loan does not impose any such requirement. Moreover, to avail of this fund, individuals don’t need to hypothecate any asset as collateral. 

Hence, even if you do not have a high-stake asset, gold, FD, mutual funds and the likes, you can still be eligible to avail of this fund, based on your credibility as a borrower. 

• Simple eligibility 

Unlike a higher education loan, personal finance is available against simple eligibility requirements. For instance, most financial institutions require applicants to maintain a credit score of 750 or above to avail of the advance. 

Hence, by following such requisite criteria, you can finance a great education abroad with a personal loan. 

• Flexible tenor 

Repaying a higher education loan can be easy, as long as individuals take stock of a few important parameters. The borrowing cost depends on the interest rate, and a lender offers the most competitive rates if one’s eligibility remains high. 

On the other hand, the tenor also plays a significant role in determining the repayment structure. Although this credit comes with a flexible tenor of up to 60 months, you need to find the right personal loan tenor that works for you. In this respect, you can also use a personal loan calculator to check EMI and other components of the loan beforehand. 

• Quick disbursal 

Since this credit does not involve any collateral, the loan sanctioning process requires minimal time. Some financial institutions process a loan request within 24 hours*.  

These are some of the most striking features of a higher education loan that individuals can consider. On approval, individuals can utilise the amount availed not just to pay their tuition fees but also to meet expenses like travelling, lodging and others.