A personal loan can be helpful in any kind of unexpected situation. This loan can be availed the same day or within a few days after the approval from the lender. Students also can avail of these loans by filling out the online forms and by submitting the relevant documents. Most of the time these loans are unsecured and don’t need any collateral. The interest rate depends on the credit score, relationship with the lender, tenure, and loan amount.
Points to Remember before applying for a personal loan for students
Here we’ll talk about the main factors which are necessary to check for the students before applying for a personal loan.
- Estimate the right amount: Students mostly need a personal loan for students for study purposes. Before applying students should estimate the right amount and take into account the cost of academic fees along with other expenses. It is advisable to add the cost of the study material and also the cost of traveling. Only a right estimate of the loan amount can fulfill the purpose.
- Opt for a suitable repayment tenure: Students should be careful while choosing a suitable repayment tenure for the personal loan. Repayment tenure should not be too long and too short. If students opt for long repayment tenure then anyhow they need to pay the high-interest costs which affect other personal expenses. Choosing the short repayment tenure could be a burden while making the monthly installments since the amount of the monthly installment will be higher. Hence it is important to choose the tenure wisely.
- Compare the rate of interest: Many banks and financial companies provide personal loan for study purposes to students. It is important or research and compare the interest rates given by banking partners. It is advisable to go for personal loans with lower interest rates, processing fees, or prepayment penalties so that students can easily manage their expenses after the repayment of monthly installments of personal loans.
- Personal loan eligibility criteria for students
Here we’ll have a look at the eligibility criteria for students to get a personal loan.
- Age should be from 22 to 67.
- Minimum one-year work experience is required.
- The credit score should be above 750 points.
- If the student is self-employed then proof of income is required.
- Employed student have to provide the salary slips and bank statements.
How to apply for a personal loan?Â
Students need the following personal loan documents list while applying for it. They can apply online or visit the bank branches.Â
- Proof of age and address such as PAN card, Aadhaar Card, Driving License, Passport, Voter ID card, Employee ID card, etc.
- In the case of employed applicants, salary slips are required.
- Last three months bank account statements
- Recent two passport-sized photographs
- For self-employed applicants, business registration certification and audited financial statements are required.
Conclusion
A plethora of loans are available for students to pursue their dream course. The loan process is hassle-free with less documentation. After approval, the amount will be disbursed directly to the bank account. The students can choose a pocket-friendly EMI option with the best features.
Read also: Top Reasons Why NBFCs are the Best Bet When Opting for a Higher Education Loan
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