Student loans – Helping you get educated
Education is one of the most important investments that can shape one’s future and career prospects. However, pursuing higher education in India can be a costly affair, especially for students from low-income families or rural areas. This is where student loans come in handy, as they provide financial assistance to eligible students who want to pursue their academic dreams.
Student loans are an invaluable tool for students in India who are looking to further their education and open up career opportunities. Loan for higher education is granted by banks or other financial institutions to students who have secured admission in professional and career-oriented courses such as management, engineering, medicine, architecture, hotel management, pure sciences, arts, commerce etc. at either postgraduate level or graduate level. By taking out a student loan in India, aspirants can attend universities, buy textbooks, and attend other educational events. Many students who take out loans can use them to start businesses and launch successful careers.
Student loans – Helping you find jobs
Data from the Indian market shows that student loans are on the rise. According to a report, between April 2018 and April 2020, the total disbursed amount of student loans increased from Rs.16,766 crore to Rs.18,436 crore.
Not only are student loans helpful for providing access to education, but they can also help students find jobs. A report by Nielsen shows that the unemployment rate among Indian graduates with a degree is significantly lower than that of those without one. The report also found that the rate of employment among those with a degree (77.9%) was more than double that of those without one (38.5%).
Student loans in India – Driving growth
There are a few factors that are helping to drive the growth of student loans in India. The Indian government has been expanding its scholarship programs, which have made it easier for students to access loans. Additionally, the Reserve Bank of India has been lowering the interest rates on loans. This has made it more affordable for students to finance their education.
Furthermore, Indian banks and NBFCs have been offering more attractive loan options for students from underprivileged backgrounds. They have all been offering loans for higher education options with attractive interest rates and flexible repayment options.
The growth of the student loan market in India is expected to continue in the coming years. By 2028, it is estimated that the number of student loan accounts will double to around 18 million. This will provide a huge boost to the Indian economy and create career opportunities for millions of students across the country.
Also Read: Best education loan in India without collateral
Student loans – Benefits for students
Student loans have many benefits for students who want to create career opportunities across India. Some of them are:
- It enables students to access quality education from reputed institutions in India or abroad without worrying about the financial burden.
- It helps students develop skills and knowledge that are relevant and in demand in the global market.
- It enhances students’ employability and earning potential by opening doors for high-paying jobs and better career prospects.
- It also assists students build their credit history and improve their financial literacy.
However, it is extremely important to note that students (or borrowers) need to plan their repayment strategy wisely and avoid any defaults or delays.
5 things to keep in mind when applying for a student loan in 2023
Before applying for a student loan, there are several things that students should keep in mind. Let’s discuss five key considerations for those who are planning to take out a loan for higher education in 2023:
1. Consider your future earning potential
One of the most important factors to consider when applying for a student loan is your future earning potential. According to a report by India Today, individuals with a higher education degree have the potential to earn significantly more than those without a degree. In fact, the report found that individuals with a postgraduate degree earned an average of Rs. 1.1 crore in their lifetime, while those with a bachelor’s degree earned an average of Rs. 73 lakh. With this in mind, it’s important to choose a degree program that will help you achieve your career goals and maximize your earning potential.
2. Research your loan options
Before applying, it’s important to research your options and compare interest rates and terms from various lenders. Many banks, NBFCs and financial institutions in India offer student loans with competitive interest rates and flexible repayment options. Additionally, some lenders may offer discounts or incentives for students who meet certain criteria, such as maintaining a high GPA or applying for the loan early in their academic careers.
3. Understand the repayment process
When applying for a student loan, it’s important to understand the repayment process and how it will impact your finances in the future. Many students from financially weaker backgrounds struggle to repay their loans after graduation due to high interest rates or job availability. To avoid this, it’s important to choose a lender that offers flexible repayment options and to create a budget that includes your loan payments.
4. Be prepared to provide documentation
You’ll need to provide a variety of documentation, including proof of income, academic transcripts, and proof of enrollment when applying for a student loan. Some lenders may also require a co-signer or collateral for the loan. To streamline the application process, it’s important to gather all necessary documentation before applying and to ensure that it is accurate and up-to-date.
5. Plan for the future
Finally, when applying for a student loan, it’s important to plan for the future and consider how your loan payments will impact your finances in the long term. According to some reports, many students underestimate the impact of student loan debt on their finances and fail to plan accordingly. To avoid this, it’s important to create a budget that includes your loan payments and to prioritize paying off your debt as soon as possible.
The student loan market in India has witnessed significant changes over the years due to various factors such as government policies, economic conditions, technological innovations etc. Between 2008 and 2014, the National Sample Survey Office (NSSO) reported, the average annual private expenditure for general education increased by 175% while during the same period, the annual cost of professional and technical education increased by 96%. This has led to an increase in demand for student loans among aspiring learners.
In conclusion, applying for a student loan in India can be a complex and overwhelming process. That’s why you need to choose Varthana student loans which play a vital role in making higher education accessible to students from all backgrounds and income levels. Varthana also helps in providing aspirants like you with the necessary tools to pursue rewarding career opportunities. If you have understood the repayment process properly and set yourself up for success in the long term, Varthana can ease the tedious process for you, so you can focus on your studies. Remember, education is an investment in your future, and with the right approach, it can pay off in a big way.