Student life is full of challenges and excitement. A lot of teenagers juggle with studies, peer pressure, a multitude of aspirations and a lot of hormonal rage. Most of the time, parents manage to provide, but in the case where it gets difficult to manage student expenses- personal loans come as a savior. Nothing should stop a kid from nurturing their talents, not even financial scarcity. The best solution is to get personal loans for students. These loans are particularly created to help students cover their academic costs or their vocational learning expenses. These loans allow them to concentrate on their studies without thinking about money.
Unlike any other educational loan, student personal loan is different. You can use it for a number of purposes other than just paying off any tuition fees. Moreover, this type of loan is granted without security, which makes it easy to avail. An education loan can be used only for the purpose for which it is taken. It has some fixed eligibility criteria as well. While a personal loan for studies can be easily and quickly obtained, and you can fund up to 100% of your expenditure.
Whether considering higher education or specialisation courses, duly planned loans can be a stepping stone to success. Just keep in mind that getting a personal loan as a student can be quite tricky, so discover all alternatives and borrow sensibly. Personal loans act as a facilitator to support students in obtaining quality education and fulfilling associated expenditures.
Let’s find out how to get a personal loan for students in detail.
What is a Personal Loan for Students?
If you require cash on an urgent basis, applying for personal student loans is a good option for you. Personal loans are a financial instrument that can assist you in achieving different goals without the need for any collateral. Upon loan approval, you get the amount upfront and pay it back over time with interest, normally in settled monthly installments.
Features of Personal Loans for Students in India
Before you apply for a personal loan, you must be aware of the terms and conditions to plan effectively and align its repayment. For instance, you should know how much loan amount you can secure, if there are any upfront charges, and how much interest rate is feasible for your overall loan repayment.
1. Loan Amount
While there are different personal loan amounts in India, students can avail themselves as per their need to fund their higher education. This amount may differ from lender to lender based on your financial condition and history.
2. Repayment Plan
It is important to calculate a repayment plan that is sufficiently flexible to accommodate your financial condition– specifically if you are thinking about your educational and professional targets. Usually, the repayment term is between 1 and 5 years. If you take out a personal loan from Stashfin, you may also get a one-month interest-free repayment facility. The best part is that you get the most flexible repayment tenure between 3 months – 36 months.
3. Collateral
Personal loans are conventional loans, so generally, there is no collateral. But, it might come with higher interest rates in that case, depending on the credit report..
4. Interest Rates
Applying for a personal loan, you might incur significant interest rates, processing charges, and penalties if you do not repay the loan within the specified limit. But, when you apply for a student personal loan with Stashfin, the interest is charged only on the sum you take out and not on your complete credit limit.
5. Upfront Fees
Though it relies on the loan provider and their terms and conditions, you might need to pay an upfront fee, also called a processing fee.
Eligibility Criteria for Students to Get a Personal Loan
Can a student get a personal loan? If a student wants to take a personal loan, he or she has to fulfil specific criteria to secure it. Let us have a look at it.
- You should be over 18 of age.
- Credit rating should be more than 750.
- If you are working, then you must furnish salary slips and proof of income.
- You must be an Indian resident and have all the required documents.
Documents Required to Apply for a Student Personal Loan
Proper documentation is important to finish the loan application procedure effectively. These normally include:
- KYC details
- Address proof
- Income proof (if applicable)
- Bank statements
- Educational details and documents
Benefits of Personal Loans for Students
Applying for a personal loan to fulfil your educational needs can be an amazing option, specifically when compared to different financial alternatives. Here are some of the benefits:
- Personal loans are issued without the need for collateral. This offers students peace of mind, as they do not have to risk any of their assets.
- Personal loans for students are processed quicker than conventional educational loans. Once the approval is done, the funds can be used within days, assisting students in meeting urgent financial requirements like admission fees, book purchases, or any other educational expenses.
- Personal loans have comparatively simple requirements. This makes them accessible to a wider group of students than different types of loans.
- Most personal loans provide flexible repayment terms. Students can select a tenure that goes with their prospective financial condition, assuring that the EMIs are convenient to repay.
- The interest rates on student personal loans can be somewhat competitive. This permits students to acquire loan amounts at affordable rates and concentrate on their education without being overpowered by financial burdens.
Tips for Students to Improve Loan Approval Chances
Applying for personal loans for students may be quite difficult. But there are ways to increase your chance of getting the much-required financial boost.
1. Improve Your Credit Rating
Your credit rating is essential when it is about getting approval for loans. To improve your score:
- Make a trustworthy and constant payment history by always paying your bills on a timely basis.
- Settling your current loans to decrease the proportion of credit usage.
- Check the error-burdened credit report and disagree with any errors that do not look correct. This is important for improving the correctness of your credit scores.
2. Involve a Co-signer
Loan approval becomes effortless when you involve a co-signer who has a powerful credit history and a good income profile. Their existence in your application shows their financial power, thus enhancing the chances of loan approval.
Conclusion
A personal loan for students in India is the best way to fund education and cover associated expenses. They let students follow their dreams without financial boundations.
Stashfin assists you in fulfilling your ambitions. With easy eligibility criteria, low interest rates, up to 30 days of interest-free credit period, and flexible terms, we help students get personal loans instantly. The person who is applying for the loan needs to download the Stashfin app and feed the required details. After verification, it will take a few minutes for the loan to be credited to the person’s account.