Student Education Loans have restrictions and can only be used to pay admission and tuition fees in most cases. However, an instant personal loan for students is a far better funding option, as it does not require collateral. Instant Personal Loans for higher education provide the freedom to use the loan amount for tuition, course material, travel, and even accommodation. Moreover, personal loans are the best choice if you need a loan instantly. These loans are approved and disbursed instantly when you apply with an online lending institution like Fullerton India.  

Things to Remember Before Applying for a Personal Loan for Higher Education

Keep the following tips in mind to ease the instant Personal Loan application process. 

• Determine your expenses:

Tuition fees for higher education can be expensive. In addition, there are many other expenses that you can consider through the loan. You need to consider the transportation, accommodation expenses, study material costs, and more. You can figure out an approximate loan amount you need by determining your costs.

• Select an appropriate tenure:

You can choose the repayment tenure as per your suitability. Many financial institutions provide the flexibility to select repayment tenure. This tenure will help determine your EMI payments, so ensure you plan them accordingly. Choose a loan duration that suits your financial needs. Usually, most lenders offer Student Loan terms in the range of 12-60 months. There are many websites that let you arrive at a conclusion by using the EMI calculator. With the help of this calculator, you can assess how much you need to save and how much you can spend.

• Check the interest rate:

Do not choose the first lender that you see. Always compare different interest rates provided by several lenders. This will ensure you get an instant Personal Loan for higher education at an affordable interest rate. In addition, always check any related fees when deciding on a lender. Some might charge you additional costs in the form of a processing fee, prepayment penalty, or any other charges. So go through everything thoroughly and plan your repayment accordingly.

Factors Affecting Personal Loan Eligibility 

First and foremost, you should be eligible for an instant Personal Loan for higher education. The eligibility criteria for different lenders may vary. However, the basic criteria are as follows-

• For salaried employees, the age should be between 21-60 years, and the minimum income should be at least INR 20,000 per month.
• For self-employed individuals, the age should be between 22-60 years, and the business should be operational for at least three years, earning a minimum revenue specified by the lender.

Key Factors-

1. Credit score: A Credit score of 750 and above is preferred. Applicants with good credit scores are thought to be more financially disciplined. So, NBFCs and other financial institutions provide personal loans to such applicants on favourable terms. You can also avail a loan at a much lower interest rate if you have a better credit score. Nevertheless, you will be able to find lenders that offer loans to individuals with low credit scores but at the cost of higher interest rates. So, you ensure to keep your credit score of 750. The minimum score required to avail of a personal loan may differ for each lender. 
2. Age: Most NBFCs and other fintech institutions provide instant Personal Loans to individuals in the age group of 21 to 60 years. 
3. Work experience: If you are seeking a personal loan for higher education, you need to have a stable income. Most fintech institutions require salaried individuals to have at least a minimum work experience of one year. If you are a self-employed individual and professional, you must be in your current business for a minimum of 3 years. If you are not working and don’t have a stable income, you can apply for an education loan. However, it requires a lot of conditions to be fulfilled. 
4. Repayment capacity: Before applying for a Personal Loan for higher education, ensure you have the plan to repay the amount. Repayment capacity refers to your ability to repay the loan within a given period. 

If you are planning to avail instant Personal Loan for education purposes, check the lender’s eligibility criteria, ensure you have all the required documents, and can repay the amount.

Conclusion 

Student Education Loans are the best option for anyone looking to upgrade their qualification or higher education. The loan can help borrowers fulfil their basic financial requirements related to education. However, there are several limitations. In contrast, an insta Personal Loan for education is easily available online. It comes without end-use restriction, so you can use it for any education-related purpose. 

Also Read: Need To Understand About Commercial Property Loan In India