Easy Steps to Get a Personal Loan for Education | Unity Bank
5 min read | 3 months ago
How to Avail a Personal Loan for Education in India ?
Education is a lifelong journey that begins early and evolves as we grow. Whether it’s a kid starting school, a teenager planning for higher studies or an adult seeking to further their education, the opportunities are endless. But as dreams expand, so do the financial needs. Education can be costly and not everyone has immediate access to the funds required for a quality learning experience. Fortunately, there are ways to bridge this gap and make these dreams attainable. One effective solution is a personal loan tailored for education. Let’s see how you can benefit from it.
Why choose a personal loan?
Choosing a personal loan for education offers flexibility and convenience that other loan options may not provide. Unlike traditional education loans, personal loans typically don’t require collateral. This means you don’t have to pledge any assets or property to secure the funds. They’re also generally quicker to process. This allows prompt access to funds. It can cover immediate educational expenses, be it tuition, books or accommodation.
Another advantage is that personal loans can cover a broader range of educational needs. While education loans are often limited to specific courses or institutions, a personal loan can be used for various purposes. This includes online courses, skill-development programs or certification courses not covered by traditional education loans. Furthermore, the repayment terms are often flexible. Thus, giving you options to structure a plan that fits your financial situation.
Who can take a personal loan for education?
A personal loan for education is accessible to a wide range of individuals. Here’s who typically qualifies:
1. Parents of young students
Parents or guardians can take a personal loan to support their child’s early education expenses, covering everything from school fees to study materials.
2.Undergraduate/postgraduate students
Students who have reached the legal age of 18 can directly apply for a personal loan to fund their higher education, whether it’s an undergraduate, postgraduate or professional course. If they are unable to meet income criteria, they may need a co-applicant, like a parent or guardian.
3.Working professionals
Those already in the workforce who want to upskill, pursue certifications or even complete a degree can avail credit to support their aspirations. Personal loans are popular among professionals because they can be secured based on an individual’s income.
How do you find a reliable lender?
To guide you in choosing a reliable lender for taking out a personal loan for education, here are the factors you need to keep in mind:
Research: Begin by researching various banks, Non-Banking Financial Companies (NBFCs) and digital lenders. Compare interest rates, processing fees, loan tenures and terms across these institutions.
Check credibility: Look for reputable lenders with a strong track record. Choose a bank, NBFC or digital lender with high ratings and positive customer feedback. Check reviews on forums, financial comparison websites or app stores.
Evaluate customer support: A reliable lender offers excellent customer service. Try contacting them with preliminary questions to assess how responsive and helpful they are. This is crucial if you need support during your loan term.
Transparency of terms: A reputable lender will clearly outline all terms, including interest rates, additional fees, penalties and repayment schedules. Avoid lenders who hide fees or aren’t upfront about costs.
Look for flexibility: A good lender should offer flexible repayment options and transparent prepayment or foreclosure terms without hidden fees. This will allow you to pay off your loan early if you choose.
What are the steps to apply for a personal loan online in India?
Once you’ve selected a lender for availing a personal loan to fund education, below is a guide to start your application:
1. Check eligibility: Use the lender’s eligibility checker online.
2. Gather documents: Prepare ID, address and income proofs.
3. Fill out the application: Enter accurate personal and financial details.
4. Upload documents: Submit clear, readable copies.
5. Complete verification: Respond to any follow-up verification.
6. Review and accept the offer: Review terms; accept if satisfied.
7. Receive disbursement: Funds are typically deposited in your account.
Conclusion
A personal loan can be an accessible and flexible option to finance various educational pursuits. By selecting a reliable lender, understanding the application process and planning ahead, you can make the journey to achieving your goals smoother.
However, it’s important to note that, unlike traditional education loans, repayment for a personal loan usually starts immediately, regardless of the course duration. Be sure to budget and prepare for this, balancing both your educational expenses and repayment commitments.
About Unity Small Finance Bank
Unity Small Finance Bank is committed to making banking simpler and more accessible for everyone. Our services include Savings Account, NRI account, Current Account, Fixed Deposits, and Personal Loans offering flexible tenures and attractive interest rates. We also offer financing options like MSME Loans and Microfinance to support businesses and underserved communities. Learn more about Unity Small Finance Bank here.
