Get Education Loan For Your Kid’s Higher Studies

Highlight: Education cost is on the rise and an instant education loan helps secure the best education for yourself or your child, without compromising in other aspects of life. 

A personal loan for students for higher studies can help you manage the costs associated with a good quality education. Quality education is of critical importance to every individual. It is, in fact, one of the precursors of a successful life. A good college education can provide a strong foundation to withstand the challenges of life. 

However, the cost of education has been on the rise lately. This can make it difficult to get the quality of education required to achieve life’s goals. Therefore, getting an instant personal loan for students is among the best options to acquire a quality education without burning a hole in your pocket. 

Read on to learn more about an education loan for higher studies and how to get an educational loan.

What are education loans?

A personal loan for education is a loan that students apply for to cover the costs of the course of their choice. The funding acquired through an instant loan for students helps cover a multitude of costs that the borrower may come across while pursuing a degree. These costs include: 

• Tuition 
• Books 
• Supplies 
• Living expenditures

Given the purpose of the loan, they are also known as study loans. Students can get an instant student loan for their studies within and outside India. The quantum and cost of this loan depend on numerous factors and vary across lenders. 

Generally, a student themselves or their parent/guardian/relative can apply for a loan for a child’s education. This depends on whether or not you are working. Say you want an instant loan but are unemployed or still studying. In this case, you will need a co-signer to offer a guarantee as you may not have the financial bandwidth to take on the repayment of an education loan for higher studies. The co-signer can be any eligible adult, such as a friend, parent, or relative.

How does an education loan work?

The way an instant loan for students works is similar to other credit options. You apply with a lender of your choice and then proceed with the application formalities. The lender will disburse the sanctioned amount to the university at or before the start of your course and charge interest until you repay the loan completely. 

Although a student or their parent or guardian can get an education loan, the repayment responsibility generally lies with the student. However, unlike other loans, the repayment does not begin immediately. In fact, most of the student loans available to individuals in India are available with attractive interest rates, and as an added convenience, you need not make interest payments instantly. 

Lenders generally grant students a grace period, also known as the moratorium period, from the moment they take the loan to the time they start making repayments. As such, students can begin the repayment sometime after completing their education. The grace period depends on the lender and a few other factors. Generally, it ranges between 6 to 12 months.

Once the student completes the course, the repayment will begin after 6 to 12 months. This gives them a chance to gain their financial footing and manage timely payments. However, keep in mind that this may vary depending on the lender you choose. So, be sure to check these and get clarity from the lender before applying.

Different types of educational loans

Institutions offer several different personal loans for students for different types of education programs. This can depend on the location, type of course, availability of collateral, and more. Here is a glimpse into the different types of instant student loans one can get: 

1. On the basis of location

There are two main categories of loans for education offered on the basis of location: 

• Domestic education loan

These are for educational courses that are within the geographical limits of the country. These are the loans you take if you or your child wants to go to the neighbouring city for better educational prospects. 

• Foreign education loan

Study abroad loans are for educational courses that take place outside the geographical boundaries of the nation. Lenders offer different loan options based on the type of course you choose. Apart from paying for your college fees, these loans can also help you pay the cost of daily expenditures like food, housing, travel, etc. 

Apart from the above, you can further divide education loans based on the type of course and availability of collateral. These comprise the following:

2. Based on course

• Higher Education Loan
• Diploma Studies Loan
• Loans for Professional Courses

3 Based on security or collateral

• Secured Loans (if collateral offered)
• Unsecured Loans or Personal Loans for Education (if collateral is not available)

Education loans available in India

1. Undergraduate student loans 

These are loans for individuals who have already completed secondary education and wish to undertake a three or four-year course to strengthen their job opportunities. 

2. Professional or graduate student loans

These loans are for professionals/graduates who want to pursue advanced degrees or higher education. To be eligible for this loan, a student must complete an undergraduate course. However, there is no specification on the type of course, and it can be from any field. 

3. Loans for parents 

These are loans where it is the parent or guardian who takes the loan instead of the student. These are unsecured loans that can help handle expenses related to the child’s education. Parents and other guardians who wish to fund their children’s further education can apply for this instant student loan. 

Getting a loan for a child’s education or your education offers an opportunity to equip your child or yourself with the tools to achieve your dreams. Fibe EMIS offers educational loans and school fee financing at easy EMIs that you can use to finance education-related costs with ease. 

This way, you can get an Instant Personal Loan for a quality education without compromising on other needs and necessities of your life. Download our Personal Loan App here or register on our website to experience a 100% digital borrowing experience.

FAQs on Education Loans for Higher Studies

Can I get an education loan if my parents are unemployed?

Yes, you can get an instant student loan even if your parents are unemployed. However, if you are unemployed too, you will need to get a guarantor or co-signer. This can be your sibling, relative or other person, as accepted by the lender.

Who is eligible for an education loan?

The eligibility for a personal loan for students depends on numerous factors, such as the course you want and the lender you choose. Generally, this information is present on the lender’s website and you can confirm your eligibility before applying.

Can I take a personal loan for education?

Yes. An instant personal loan is a multi-purpose loan that you can use for education-related expenses. With a personal loan for students, you can cover the cost of studying abroad, tuition fees, accommodation, travel, buying study materials and more. 

Which loan is best for education?

To choose the best lender, you need to compare the costs, loan amount and your eligibility. Based on it, you can choose a lender that offers the best deal. 

Who is eligible for an education loan?

The eligibility for an education loan depends on a number of factors, which vary across lenders. You can check your eligibility for individual lenders from their website. Here are some general eligibility criteria for an education loan:

• Applicant must be a resident of India to apply
• Applicants must be above 18 years of age to apply for an education loan for themselves
• Applicants must not be above the age of 35 years when applying for the loan
• Applicant must have an excellent academic record in the previous highest qualification
• Applicant must have admission to an institution recognized in India and abroad through the clearance of the entrance exam 
• Applicants must have complete documents, including admission confirmation documents, 10th and 12th mark sheets, as well as an undergraduate and PG degree if applying for a higher education course 

When you take a personal loan for education, the criteria are simpler. At Fibe, you can get an Education Loan with ease by meeting the following terms: 

• Be an Indian resident 
• Be between 21 and 55 years of age
• Earn a salary of ₹18,000 (as a resident of metro cities) or ₹15,000 (as a resident of non-metros)