A Guide to Applying for a Loan For Higher Education

A Guide to Applying for a Loan For Higher Education

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Loan For Higher Education

Educational Loan – An Overview

Education loans, also known as loans for higher education, are financial aids provided by the lenders (Banks, NBFCs, or other financial institutions) to help the needy but otherwise eligible students to pursue higher education at reputed professional institutes. It is designed to help students in covering the costs of college tuition, books, and living expenses.

There are a variety of educational loans available today to integrate various budgets and students from different strata. More than 3.74 crore students across 993 universities, 39,931 colleges, and 10,725 stand-alone institutions enrolled for higher studies in 2019, and all of them are not from affluent backgrounds, according to the paper published in ‘Economic and Political Weekly’.

Also, that degree from a reputed university may be your ticket to a dream job as well as the financial ability to repay the loan. A loan for higher education, unlike other forms of financial aid such as scholarships, grants, and stipends, must be repaid by the co-borrower, although with some ease than the other loans. Most of these loans are to be repaid over the course of a student’s education.

Current Scenario

Some two decades ago, the question of how to fund higher education for their otherwise intelligent and desiring children was a major concern for middle-class families. There were a few government aids, such as scholarships, but they were insufficient. Gone are the days when a student had to go from pillar to post to borrow money to pay for his or her education. Today, we have the facility of taking out a loan for higher education, enabling deserving candidates to further their higher education.

How does an education loan help?

In recent decades, education costs, particularly for higher education, have skyrocketed to the point where it is difficult for not only the middle class but also the upper-middle class to cover their educational expenses on their own. Thus, education loans are extremely beneficial to people who are financially strapped. A loan for higher education has made the distant dream of quality education a practical reality.

These are the purposes for which a student can apply for education loan are:

  • Tuition and other fees
  • Maintenance costs, books & equipment, etc
  • Cost of travel
  • Caution fund/building fund/refundable deposits

Also read: Top 5 benefits of education loan

 

Types of Education Loans

Loan For Degree And PG Courses

This type of loan for higher education is available for undergraduate studies. Any students who have completed high secondary school/PUC/+2 and want to pursue a three-year or longer course to improve their job opportunities can apply for this. These are some of the best student loans available, with simple repayment terms and no collateral required.

Loan For PUC 1 And PUC 2

Students who have completed the 10th grade and plan to enroll in a two-year pre-university college course are eligible to apply for PUC/+1/+2 student loan. These student loans, which have low EMIs, provide financial assistance to students pursuing a Pre-university College Degree. This is a no-collateral loan.

Loan For Certification Courses

Students who want to attend career-oriented certification programs, such as vocational, technical, or upskill courses offered by institutes, can apply for education loan for certification courses. No collateral needed for these unsecured loans.

Eligibility to apply for a loan for higher education

  • Nationality: To be eligible for a loan for higher education, you must be an Indian citizen who has been accepted or is seeking admission to a college, university, or institute in India.
  • Courses: You must finish your high school education. Some banks will provide a loan for higher education even before a student has been accepted to a university. The age limit for obtaining a loan is determined by the bank, NBFC, or financial institution.
  • Institutions: You should secure admission to an Indian institute to pursue higher or technical education through the appropriate selection process and clear the qualifying examination from a recognised institution in India.

How to apply?

Before applying for a loan for higher education, you must first determine how much amount you have and how much more you will need to borrow to meet your needs, taking into account the tuition fee, boarding and lodging expenses, etc. Thus, all possible expenses should be calculated precisely before taking out the loan.

The type of loan you should take is the second thing to decide after determining how much loan you really need to cover all of your expenses.

Aspirants can apply for a loan for higher education either online or in-person at a branch. The online process is very easy. Follow the steps to apply today:

  1. Visit the website of your finance company and fill out the application form
  2. Enter your personal information and property details
  3. Share your/co-borrower’s income details to access a personalised offer
  4. After you submit your information, wait for an authorised person to contact you with additional loan processing instructions.

A good education is the first step toward a successful career. Therefore, you should not have to give up your dreams due to a shortage of funds.

Taking out a loan for higher education from Varthana allows students to continue their studies at the universities of their choice. It contributes to the growth and development of the country and its citizens. Because Varthana student loans are a long-term investment, it’s essential to do your homework and take your time. Apply now

Conclusion

Applying for a loan for higher education can seem daunting, but with the right guidance, it’s manageable. Start by researching different lenders and their loan options, considering factors like interest rates and repayment terms. Gather all necessary documents, such as academic records and financial statements, to support your loan application. Be sure to check your credit score beforehand, as it can impact your loan eligibility and terms. Once you’ve chosen a lender, submit your application and be prepared to undergo a verification process. If approved, use the funds wisely to invest in your education and future career prospects. Remember, taking out a loan for higher education is an investment in yourself and your future success.

FAQs

1. What is the best way to apply for an education loan?

The best way to apply for an education loan is to research different lenders, compare their interest rates and repayment terms, and choose the one that best suits your needs.

2. Who is a guarantor when we talk about education loans?

A guarantor for an education loan is someone who agrees to take responsibility for the loan repayment if the borrower is unable to pay. This person is usually a family member or someone with a stable financial background.

3. What factors should be kept in mind before applying for an education loan?

Before applying for an education loan, students should consider factors such as interest rates, repayment options, loan amount, and eligibility criteria. It’s important to ensure that you can comfortably manage the loan repayments after completing your studies.

4. How is an education loan beneficial for students?

Education loans benefit students as they provide financial assistance to pursue higher education and achieve their career goals. They help cover tuition fees, living expenses, and other educational costs, allowing students to focus on their studies without worrying about financial constraints. If you need financial assistance to pursue your career at any level, whether it’s during PU level, undergraduate studies, or post-graduation, Varthana’s student loans provide an excellent option. They offer easy loan processing and flexible repayment options, allowing you to pursue your career goals with ease.

5. What is the education loan rule?

The education loan rule varies depending on the lender and the country’s regulations. Generally, students need to meet certain eligibility criteria, such as being enrolled in a recognized educational institution, to qualify for an education loan.

6. How much education loans can be availed to study abroad?

The amount of education loans that can be availed to study abroad depends on various factors, including the course fees, living expenses, and the country of study. Typically, lenders offer loans covering the entire cost of education, but students should carefully assess their financial needs before borrowing.

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