Personal loans for education are a good option if you want to pursue any course abroad without pledging any collateral for the loan. However, the interest rate might be higher than education loans because personal loans are unsecured. You can apply for a personal loan which will be approved based on monthly income, credit score, course and university. Let’s discuss some of the common FAQs on personal loans for education.
Table of contents
- What is a personal loan for education?
- What are the eligibility criteria for personal education loans?
- What are the documents required for personal loans for educational purposes?
- What is the maximum amount of loan I can get in a personal loan?
- What is the maximum repayment period for a personal loan?
- Can I get a personal loan for educational purposes if I am unemployed?
- Is a personal loan for education better than a usual education loan?
- Which expenses are covered in a personal loan for educational purposes?
- Can I get a loan transfer if I have taken a personal loan for education?
- What is the interest rate on a personal loan?
What is a personal loan for education?
A personal loan for education is a type of unsecured loan which you can get from a bank or financial institution without collateral. A personal loan allows flexibility to use the money for different types of expenses as the banks may transfer the loan amount to the personal savings account of the student.
What are the eligibility criteria for personal education loans?
Indian students planning to pursue higher education abroad for undergraduate and postgraduate studies can apply for personal loans for education. The applicants must be between 18 and 35 years old, with a good credit history. Usually, a credit score of 700 and above is considered a good credit score.
Also Read: Want a quick personal loan for higher education abroad? Check out all the information on Bajaj Finserv Personal Loan for Higher Education
What are the documents required for personal loans for educational purposes?
For a personal loan for educational purposes, you need to submit common documents like proof of identity, address proof, admission confirmation letter from the educational institution, income proof of the co-borrower (if any), and academic records.
What is the maximum amount of loan I can get in a personal loan?
The maximum amount in a personal loan varies depending on the bank or financial institution. Some banks offer up to INR 50 lakhs in a personal loan based on the income of the applicant or the co-applicant. Compare the amount, interest rate, and other terms and conditions before finalising the loan.
What is the maximum repayment period for a personal loan?
Most banks allow a maximum repayment period of 5 to 7 years in a personal loan. In some cases, the repayment tenure ranges from 5 to 10 years. However, some lenders might offer shorter or longer durations depending on the borrower’s financial profile.
Can I get a personal loan for educational purposes if I am unemployed?
Banks or financial institutions may reject the loan request if you are unemployed. However, in such cases, if you find all other terms and conditions suitable, you can get a secured personal loan by keeping any asset as collateral. There are some banks that may allow unsecured personal loans based on the income of the co-applicant.
Also Read: HDFC Bank is one of the most preferred choices for personal loans for education abroad. Check out all the information on HDFC Bank Personal Loan for Education
Is a personal loan for education better than a usual education loan?
Both types of loans have their advantages and limitations. Compare the terms and conditions of both the loans and finalise the one that suits your requirements. Education loans generally come with low rates of interest but for any amount above INR 4 lakhs, you need to mortgage any asset with the bank or lending institution.
Which expenses are covered in a personal loan for educational purposes?
All major expenses such as tuition fees, accommodation fees, living expenses, laptop charges, two-wheeler charges etc. are covered under personal loans for educational purposes. Also, since the amount can be obtained in a personal savings account, there is more flexibility to use the money for different types of expenses abroad.
Can I get a loan transfer if I have taken a personal loan for education?
Yes. Any type of loan can be transferred to another bank. You can get a loan refinanced from another bank if you find the terms and conditions better. Usually, a loan refinance is done to save the interest rate or to convert secured loans into unsecured loans.
What is the interest rate on a personal loan?
Most of the banks and NBFCs offer personal loan interest rates ranging from 10.50% to 24% p.a. The interest rate is decided based on several factors such as the income of the applicant, credit score, credit enquiries, employment status and employer, age etc. Compare and negotiate the interest rate and secure the best-suited offer.
By understanding the factors and considering all available options for personal loans, students can start planning for the international academic journey with confidence and financial stability. Always go through the terms and conditions of the loan and compare all available options before finalising the lender.
To know more about the loan application process, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience. ;
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