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Personal Loan for Higher Education Expenses
A personal loan can help students fund higher education expenses not covered by savings, grants or scholarships.
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Higher education can sow the seeds of hard work to be reaped as a fruitful career tomorrow. It's natural not to want to make any compromises on this front. Whether you want to study in India or abroad, higher education requires a substantial investment. Even with options like a grant or scholarships, you may not be able to cover everything. In such cases, a personal loan comes to your rescue. Learn how this unsecured credit option helps you cover higher education expenses in this article.
Features of a Personal Loan for Higher Education
Some of the key features of a personal loan that can help you manage your higher education expenses conveniently and flexibly include:
- 100% Digital Process: Apply online from the comfort of your home. No hassle of branch visits or preparing physical paperwork.
- Swift Disbursal: Once approved, the loan amount is disbursed within a few hours. So, you can manage time-sensitive education fees conveniently.
- Repayment Flexibility: Choose between a flexible tenure range of 12 to 60 months to plan your EMIs according to your repayment capacity.
- High Loan Amount: Some lenders let you borrow up to ₹50 lakhs based on eligibility factors such as your age, income, employment, and credit score.
- Affordable Interest Rate: Keep your borrowing cost manageable by qualifying for a typical personal loan interest rate starting from 9.99% p.a.
Which Higher Education Expenses Does a Personal Loan Cover?
You can manage several costs associated with higher education with a personal loan, including:
- Tuition and Admission Fees: Pay your course fees, admission charges, and other institutional expenses applicable to joining your college or university.
- Study Material Cost: Cover the cost of textbooks, laptop, software, and other learning resources required for your course.
- Accommodation: Manage hostel or other accommodation costs when studying away from home.
- Moving Expenses: Meet the cost of travelling and moving your essentials when pursuing education in another city or country.
- Other Education-related Costs: You can also cover examination fees, coaching class costs, and mess or food bills, as there is no end-use restriction on a personal loan.
Tips to Maximise the Potential of a Personal Loan
A personal loan is most useful when you approach it with careful planning. Here are a few simple checks to make the most of your borrowing experience:
- Consider Your Affordability
Work out your actual funding gap and borrow only as per your needs. Borrowing more than required adds to your overall repayment burden.
- Compare Before Choosing
Look beyond the advertised interest rate when considering lenders. Check their loan terms and other applicable charges such as the processing fee, prepayment charges, EMI bounce charges, etc.
- Plan Your EMI in Advance
Use an EMI calculator to understand your monthly outgo and choose a tenure accordingly. Pay EMIs on time to avoid late payment fees and a negative impact on your credit score.
- Maintain a Healthy Credit Profile
A credit score of 710 or higher is usually considered good for a personal loan. Check your credit score and boost it by clearing unpaid dues before exploring additional credit like a personal loan.
Looking Ahead
The way you finance your higher education deserves as much thought as deciding on the course and university. Before you apply for a personal loan, it helps to assess your need properly and compare the loan terms across lenders. Making sure the estimated EMI fits your monthly budget comfortably helps you get through the repayment journey smoothly. With a clear understanding of the costs and your repayment capacity, you can approach your education plans with confidence. If you're ready, explore your options and apply within minutes.
Note to the Reader: This article is part of Hindustan Times' promotional consumer connect initiative and is independently created by the brand. Hindustan Times assumes no editorial responsibility for the content.
The content may be for information and awareness purposes and does not constitute any financial advice.
