Higher education expenses are sizable yet not something you as a parent would want to compromise on. This is because, today, quality tends to bear a hefty price tag and top colleges in India and abroad charge more than just a pretty penny as tuition fees alone.
While saving and investing is crucial to meeting expenses, to get monetary assistance you can also consider an education loan. Here, you have two options: a regular higher education loan which is cost-effective but limited in scope and a personal loan for education, which offers an accessible and large sanction sans collateral.
Read on to know how a personal loan for education can easily help you finance higher education programmes your child is keen on applying for.
You get one loan to cover all expenses
In case of a regular education loan, only tuition fees may be covered and abroad, living costs are also among the more significant expenses. However, if you opt for a personal loan for education, you can finance every aspect of the higher education programme.
This is because there are no restrictions on the end-use of the sanctioned amount and you retain complete autonomy with respect to the amount.
You get competitive interest rates, basis your financial profile
Securing a low rate of interest is key as high rates imply large EMIs. While regular higher education loans are cost-effective options, in case of a personal loan for education, you can tilt the scales in your favour too by leveraging your financial credentials.
Since a personal loan is a collateral-free offering, the rate of interest depends on both your lender’s policies and your credit score.
Generally, an ideal score, of 750 or above, coupled with a low debt-to-income ratio, and a well-paying job should help you secure funding on lenient and favourable terms.
You get funding on simple eligibility terms
At times, the process of applying for a regular higher education loan is one that is long-drawn, tedious and involves a lot of paperwork. Moreover, if you opt for a standard education loan, you may have to submit documents such as your child’s letter of admission, exam-result sheets and other academic records.
Additionally, in case of a regular education loan, your child’s university and course may have to be present on your lender’s list of shortlisted approved programmes for your child to qualify for financing.
However, applying for a personal loan for education involves a hassle-free process that has straightforward eligibility criteria centred on your age, employment, salary and citizenship.
Additionally, you can easily apply for a personal loan by filling out a form online and submitting the necessary documents.
Further, the documentation requirements are normally minimal and to illustrate, below are the documents you must produce to obtain a Higher Education Loan from Bajaj Finserv.
- KYC documents
- Employee ID Card
- Salary slips of the last two months
- Bank account statements of the last 3 months
You get a flexible tenor that facilitates easy repayment
One of the major concerns when applying for a high-value loan is repayment. Regular education loans address this issue by offering a moratorium period or a repayment holiday.
In case of a personal loan for education, what you get is a flexible tenor that stretches to a maximum of about 60 months.
This allows you to split up the cost of the higher education programme conveniently, while also serving as a means to accommodate your child’s future income into repayment.
You get access to finance quickly thanks to a speedy disbursal
Personal loans for education are superior finance solutions in that they provide instant funding and easy access to liquidity.
Here, the money is disbursed to your bank, not to an admission’s office, and with lenders like Bajaj Finserv you benefit from an expedited disbursal process.
Bajaj Finserv’s streamlined process includes approval within 5 minutes of submitting an online application and a 24-hour disbursal. Moreover, the loan amount is substantial, up to Rs.25 lakh, and you can obtain the entire sum without needing to pledge collateral.
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Bajaj Finserv also offers the Flexi Loan feature, through which you can withdraw finance in parts, multiple times, without needing to make additional applications or incur extra charges.
Further, since interest is only charged on the withdrawn amount and not the entire sanction, you can keep your interest outgo in check.
Now that you know about these 5 reasons to pick a personal loan for education to finance an expensive study programme, begin shortlisting lenders.
To opt for an education loan from Bajaj Finserv, check your pre-approved personal loan offer today. On sharing simple details, you get instant approval through a customised deal!