To have a great career in India, you must finish your studies and earn your degrees from a reputable university. If you want to work in high-paying jobs, you will need a higher-quality education. However, due to skyrocketing college fees, many aspirants are abandoning their plans to pursue higher education. The total cost of an MBA, MBBS or engineering degree from a reputable Indian college might range from a few lakhs to several crores. As such, if you do not explore other sources of finance, your life savings will be spent in a brief span. A personal loan app comes to your rescue to help you in this situation.
When should you consider getting a personal loan for education?
- Paying College Fees:
The most common reason for taking out a personal loan is to pay for college fees. Don’t worry if you fall short of a few thousand or a lakh rupees when you apply for admission. Take out your phone, download a loan app, and you will have access to funds right away. Apps like this have relatively straightforward education loan procedures.
- Hostel Fees
Another occasion when a simplified education loan procedure can help you is when you need to pay your hostel charges. You may find yourself in a scenario where your parents can only afford to pay for your college admissions but not for other necessary fees. In such an instance, a personal loan can assist. The annual hostel cost in India can range from a few thousand rupees to over one lakh rupees. As a result, personal loan apps ensure that you receive comfortable accommodation by granting a maximum loan amount of Rs 1.5 lakhs.
- Tuition Fees
If you want to study for the entrance exams for MBBS, MBA, or engineering, you should be aware of the coaching prices. The price might be somewhere between Rs 25,000 and slightly more than one lakh. If your parents have not adequately budgeted for these expenses, they will find themselves in a budget crisis.
However, instant personal loans can help you or your parents get out of financial trouble. The loan secured through the lending app has a 24-month maximum repayment period. It means that borrowers must pay the minimum amount each month, and the amount will not interfere with their monthly budget.
Things to Consider When Taking Out a Personal Loan for Education
If you want to get funds to cover the expenses related to higher education, you should consider the following pointers.
- Decide on the Course:
Different courses have different fee structures. For example, the cost of pursuing a simple B.Com is significantly lower than that of studying a B.Tech. However, the cost of medicine is far more than that of any other course accessible in India. As a result, you must first settle on a course before applying for a personal loan for education. Once decided, plan your budget accordingly.
- Decide on the College:
Similar to the course, the fee structure also varies depending upon the college. If you want to enrol in a private college, you will have to pay significantly more than if you enrol in a government college. The education loan procedure varies from one college to the next. If you are applying to an institution with a strong placement record, the lender may be willing to relax the personal loan terms and conditions. You might be able to secure a low-interest loan in this situation.
- Know Your Requirements:
After you have decided on a course and a college, it is important to look over your finances. Check to determine how much money you can source from your own pocket and how much you will need to borrow. Remember, the amount of loan plays a major role in establishing the education loan procedure and determining the interest rate.
- Review the Qualifying Criteria:
Even though the eligibility conditions for a personal loan for education obtained through a loan app are not very rigorous, you should nevertheless evaluate them. Keep in mind that, as compared to non-qualified applicants, the applicant who perfectly meets the lender’s requirements will be able to acquire more favourable terms.
Personal loans for education are in huge demand these days. It not only assists in the payment of college fees but also helps in covering several other education-related expenses. It is the best alternative for students and their parents because of the simplified education loan procedure and easy access to funds through the loan app.