How To Get A Student Loan Without Your Parents’ Support?

How To Get A Student Loan Without Your Parents’ Support?

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Students who otherwise would not have been able to pursue their education benefit greatly from student loans in India. Millions of students would not have been able to attend their dream institutions if it weren’t for student loans.

Student loans are easily available to a large number of learners who are facing a financial crunch and don’t want to risk their parents’ property and other assets to fund their education dream. That’s why there has been a steady growth in student loan demand in the country

According to a report by the credit bureau CRIF High Mark, disbursement of student loans increased by 9.25% between the year 2017 to 2018, and student loan companies, including banks, non-banking financial companies (NBFCs) and other financial institutions, disbursed Rs 11,000 crore loans during the year ending in September 2020. 

This demand reached a new high during the pandemic, with more than 3 lakh new borrowers signing up for loans between March and October 2020. As of October of that year, the outstanding education loans totalled Rs 1 lakh crore – the highest on record.

Why a student loan is necessary to prepare for a successful career?

Student loans can be an important tool for financing a college education, which can in turn help to prepare for a great career. Higher education can provide students with the knowledge, skills, and credentials that are often necessary to secure good jobs and advance in their careers. By taking out student loans to pay for college, students can invest in their own futures and increase their chances of success in the job market. 

Here’s why taking out a student loan makes sense:

  • Students will undoubtedly require the money to pay for a good college or university and start the process of preparing for the real world, primarily through quality academics and internships at good companies.
  • Parents want their children to get the financial aid they need to go to college, but ideally, they also want their names removed from the loan and no obligation to repay that debt.

Also Read: 5 Things You Should Know Before Cosigning a Student Loan

Why getting a student loan without parental support is a smart choice?

There are several reasons why taking out a student loan may be a better option than taking support from your parents:

  1. Financial independence: Taking out a student loan allows you to be financially independent and responsible for paying off your own debts. This can help you build credit and establish financial stability in the long run.
  2. Avoiding family tension: Depending on your parents for financial support can strain your relationship and cause tension within the family. Taking out a student loan allows you to handle your own finances and avoid potential conflicts.
  3. Student loans can help you build credit, which is important for future financial endeavors such as buying a car or a house.
  4. Potential tax benefits: Student loans may offer tax benefits such as the ability to deduct interest paid on loan. This can help lower your overall tax burden and save you money in the long run.

Future financial stability: Taking out a student loan and paying it off responsibly can help you establish a strong financial foundation for the future. This can lead to better credit scores, lower interest rates on future loans, and overall financial stability.

Eligibility to apply for student loan

  • Nationality: To be eligible for a student loan, the borrower must be an Indian national who has been accepted or is seeking admission to a college, university, or institute in India.
  • Courses: The student must finish high school education. Some banks will provide a student loan even before the borrower has been accepted to a university. The age limit for obtaining a loan is determined by the bank, NBFC, or financial institution.
  • Institutions: The student 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 recognized institution in India.

How to apply for a student loan?

Before applying for a student loan, the borrower must first determine how much amount he or she has and how much more is required to meet the 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.

Aspirants can apply for a student loan 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 the finance company and fill out the application form
  2. Enter personal information and property details
  3. Share borrower/co-borrower’s income details to access a personalized offer
  4. After submitting the information, wait for an authorized person to contact you with additional loan processing instructions.

A good education is often considered the first step towards a dream career. Dreams are what drive us to strive for success. Giving up on your dreams because of financial constraints is like letting go of the very thing that motivates you to work hard and achieve your goals. Therefore, students should not have to give up their dreams due to a mere shortage of funds. Many students face financial challenges during their college years, but with hard work and dedication, they can overcome these obstacles.

And, there are many sources of funding available to help students achieve their goals. For example, with a Varthana education loan, needy students can easily pay off tuition fees, examination fees, housing or accommodation costs, travel expenditures, and associated pre-admission charges. 

Varthana will lend money to students to study nearly anything as long as the course and institution are approved by the relevant authorities or have a good reputation. Students with a good academic record and most importantly Indian citizens will be eligible for the domestic education loan. Those who have been accepted to career-oriented courses such as Medicine, Engineering, and Management at the graduate or postgraduate level are also considered.

Varthana allows students to continue their studies at the universities of their choice. Apply now

 

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