Here’s how a personal loan can be used to fund your education

instant personal loan application

It’s not uncommon for someone to get accepted at a university, and realise that the total budget required exceeds their current savings. One may also want to enrol for an education program abroad but for some reason, could be deemed ineligible for an education loan.

In situations like these, a personal loan could be of help.

Personal loan over education loan

A personal loan differs from an education loan. A personal loan can be used for a variety of purposes, like your education or that of a family member, along with other expenses that aren’t particularly education-related. An education loan can only be used for the purpose for which it is taken.

Usually, an education loan or student loan can come with certain specific eligibility criteria and could need you to fund 15% of the expenses. A personal loan is easier to avail of and can fund up to 100% of your expenses.

Features of Personal Loans

  • Maximum loan amount – up to Rs. 40 lakhs
  • Flexible loan tenure - 12 to 60 months
  • Attractive interest rates
  • Instant approval with same-day loan amount transfer

Tips to get a personal loan for students

Here are some expert tips to go about getting a personal loan for students in India.

  • Estimate your expenses
    While calculating expenses, consider tuition fees, travel expenses, special tutoring expenses, cost of study material, and also the cost of boarding and lodging not covered by an education loan. Get in touch with family and friends to understand the possible cost of living. On making an accurate estimate of your costs, you will be able to determine how much loan amount you would need to apply for.
  • Choose the tenure carefully
    Opt for a personal loan from a bank that offers flexible tenures, since your monthly repayment amount will depend on it. One beneficial feature for students is pocket-friendly EMIs. Balance the tenure and EMIs to come upon a monthly outgo value that you would be comfortable with.
  • Check the Interest Rates and Fees

Go through any processing fees & rate of interest that will be applicable on the loan before applying. Go through these details for different lenders and then make your decision.

Personal Loan Eligibility Criteria

Here are the general requirements for availing a personal loan:

  • Acceptable age of applicant - 23 years to 60 years (for salaried)
  • Employment status - Salaried and employed in a public or private limited company (For self-employed individuals, a certain minimum turnover value will have to be met)
  • Income for salaried individuals – Rs. 20,000 per month
  • Work experience - Minimum 1 year
  • CIBIL score – 700+

Your actual eligibility will also consider other parameters like repayment history, credit history, and so on.

Apply for an Instant Personal Loan

  • Visit the online portal
  • Enter your personal details such as the residential pin code, DOB & mobile number to get started
  • Provide your PAN number for KYC
  • Complete the application form with personal & employment details
  • Upload the required documents for verification
  • Save the reference number generated against your application.

Individuals can apply for a loan on our website or via the IDFC FIRST Bank Loans app.

A personal loan can be an invaluable financial assistance to receiving a good education and expanding your academic, social, and economic prospects. Get in touch with us today to know more about getting a personal loan for education.