Student Loan – An Overview
The demand for student loans has increased recently because students from diverse backgrounds can avail financial aid from lenders (banks, NBFCs, or other financial institutions) to pursue higher education at reputed professional institutes.
A degree from a reputed university may be your ticket to a dream job but as the data shows, the number of students seeking loans dipped from 34 lakh to 27.8 lakh during a four-year period (up until mid-2019). However, over the same time period, the average loan size increased significantly from 5.3 lakhs to 9 lakhs.
So, it is very important to repay the borrowed money on time, every month. Because if you don’t, this will drastically reduce your credit score, impact your ability to obtain any future credit, and can lead to the seizure of personal property (for secured loans).
With Varthana’s wide range of secured and unsecured student loan options, it is very easy to apply for student loan online in India. Most of these loans are to be repaid over the course of a student’s education.
The student must have secured admission to the university for availing the loan and the amount taken by students is paid directly to the institution. Before we talk about how you can apply for student loan online, let’s discuss the various courses that a Varthana student loan covers:
India’s education system is vast and competitive, with numerous universities offering degrees and diplomas in a wide range of courses and specializations. The following are some of the courses that are covered by Varthana student loans:
Studies in India
- Graduation, Post-graduation including regular technical
- Professional Degree/Diploma courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Govt. etc.
- Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM etc
- Teacher training/Nursing courses approved by Central Government or the State Government
- Regular Degree/Diploma Courses approved by the concerned regulatory authority
- Job oriented professional/ technical Graduation Degree courses/ Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc.
Reasons why Student Loan is the best investment
Student loans are the best way to pay for college. Student loan is an investment that brings plenty of benefits and assured returns. Education from a prestigious institution opens up promising career growth that subsequently helps in finding better jobs. A student loan offers many advantages for aspiring students and their families.
A student loan is extremely beneficial because:
- A degree from a prestigious and well-known university is accepted worldwide.
- Multinational corporations place a high value on hiring professionals with degrees from prestigious universities.
- Higher education helps explore and grab opportunities in some of the highest-paying countries in the world.
These are the purposes for which you can apply for student loan online 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 Loans
Loan For Degree And PG Courses
This type of loan for higher education is available for undergraduate studies. If you have completed high secondary school/PUC/+2 and want to pursue a three-year or longer course to improve your job opportunities, these are some of the best student loans available, with simple repayment terms and no collateral required.
Loan For PUC 1 And PUC 2
If you have completed the 10th grade and plan to enrol in a two-year pre-university college course, then you 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
If you want to attend career-oriented certification programs, such as vocational, technical, or up-skill courses offered by institutes, you can apply for student loan for certification courses. No collateral needed for these unsecured loans.
Eligibility to apply for student loan online in India
- Nationality: To be eligible for a student loan for higher studies, 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 student loan 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 for student loan online?
Before applying for a student loan online, 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 student loans either online or in-person at a branch. The online process is very easy. Follow the steps to apply today:
- Visit the website of your finance company and fill out the application form
- Enter your personal information and property details
- Share your/co-borrower’s income details to access a personalised offer
- 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 allows students to continue their studies at the universities of their choice.
Therefore, taking an education loan is a prudent decision as it reduces the strain on your family savings and eliminates the need to liquidate your investments in fixed deposits, mutual funds or bonds. Read about Varthana’s guide to applying for a student loan online.