You have worked for a few years in your profession and gained some experience. You decide you want special training and higher academic knowledge in your chosen field. You apply for a course at a foreign university and get accepted to the college, only to realize that your expenses will exceed your current savings.
Or you may want to send your children or spouse for an education program abroad. For some reason, you are not eligible for an education loan. A personal loan for education is the solution to your financial worries.
A personal loan is different from an education loan. You can use the personal loan for a variety of purposes, including your own or the education of a family member. A student loan can be used only for the purpose for which it is taken. Besides, a student loan has specific eligibility criteria, and you must fund 15% of the expenses. A personal loan for education is easy and quick to get, and you can fund 100% of your expenses.
Here’s how you can go about getting a personal loan for students in India.
- Estimate your expenses
Education is expensive. And study abroad particularly so. When you are calculating expenses consider travel expenses, tuition fees, cost of study material, any special coaching you may need, and cost of lodging and boarding. Speak to friends and family who live in the country to understand the cost of living. Once you have an accurate estimate of your costs, you will be able to get an idea of how much personal loan you need. - Check your eligibility
Check if you are eligible for the amount you need with the Personal Loan Eligibility Calculator. HDFC Bank gives personal loans up to Rs 40 lakh. - Decide tenure and repayment
Take a personal loan for students from a bank that offers flexible tenures, because your monthly repayment amount will depend on the tenure. Remember as a student you may not have the same earnings as you did as a professional. Your biggest requirement is pocket-friendly EMIs. Balance the amount and tenure to arrive at an optimal monthly outgo. HDFC Bank offers tenures from 12 to 60 months, with EMIs starting as low as Rs 2174 per lakh. - Make your application
A personal loan requires minimal documentation – ID proof, address proof or income proof. Check with your bank and get all the documents ready. If you are an existing customer, the documentation may not even be required. Find out how you can apply for the loan. With HDFC Bank, you can apply online via the website, through NetBanking, at an ATM or by visiting the branch.
Talk to your bank about processing time – personal loans are disbursed quickly. If you are a pre-approved HDFC Bank customer, you can get a personal loan in under 10 seconds and others can get it in under 4 hours. - Get cracking
Once you have the funds from your personal loan for education, go ahead and book your tickets, pay your tuition fees and get started on your exciting journey as a student.
