Tips to Use An Instant Personal Loan for Students Responsibly

Student Personal loans

Student Personal loans might help students who want to study but cannot due to financial restrictions. Paying for your education while you’re still in school and then repaying after you start working is a terrific boost for banks as well as your career. There are almost all major banks in India that provide instant personal loan online. The most significant advantage of low-interest personal loans is that they can be repaid within a year of finishing your studies or finding work, whichever comes first.

Eligibility Criteria for Student Personal loans

To qualify for a student personal loan from a financial institution or bank, the applicant must meet the criteria for Student Personal loans and know how to apply for a personal loan for students. The following are general eligibility requirements for student loans: 

  • The applicant must be a citizen of India
  • Applicants must be between 21 and 67 years of age
  • To qualify for Student Personal loans, a co-applicant is needed.
  • Collateral will be required as security if the loan amount exceeds the specified limit.
  • Co-applicants ‘ salaries must meet minimum salary requirements specified by the banks
  • To apply for a loan, the applicant must be enrolled in a course or college.

 Features and Benefits of Student Personal loans

  • You can pay for your education expenses and fulfill your career ambitions with an instant loan for students.
  • Student loans are easy to obtain and do not have strict requirements. This makes them a very popular loan type. By just applying online you can get personal loan instant approval.
  • Student loans are an excellent alternative to other kinds of borrowing, such as personal loans. This is because the interest rates on student loans are lower than personal loans, and the terms and conditions are less restrictive.
  • The most important aspect of an Student Personal loans is that the student begins repaying the loan once the educational course is complete. Thus, the student loan could be delayed until the applicant earns money within a certain period.
  • The purpose of an Student Personal loans is to assist the borrower in managing educational costs and to provide tax benefits. You can claim a tax deduction for interest paid on student loans under section 80E of the Income Tax Act.
  • An education loan may impact a family’s ability to acquire additional education loans.

Interest Rates of Student Personal loans

The interest rates on student loans are higher than those on house loans. Interest rates vary by bank, but they typically range from 13 percent onwards. Students enrolled in prestigious universities such as IIT or IIM may be eligible for a lower-interest student loan. At several public sector banks, the interest rate for female applicants is lower.

Final Thoughts

In India, most financial institutions offer instant loans to students. Students can use these loans for various professional courses, including post-graduate degrees in engineering, management, and medicine. Loans are also available for vocational and part-time courses.

Read Also: Don’t Believe These 4 Myths about Availing of Personal Loans for Students

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