If you are planning to go for higher studies or are planning for a child, then you are already aware of the cost that comes with getting higher education. Also, it implies that you would be familiar to some extent with instant loans and may have tried to know how to get one.
If you plan to get a student loan for yourself or your child, you are at the right place as you will get the necessary insights here, which are important for you to know before getting a student loan.
What is covered under student online personal loans?
A student loan refers to a sum of money particularly taken for covering important costs relating to graduation, post-graduation or other higher education-related courses in India or abroad. It will also cover your accommodation expenses, books, supplies, and tuition fees for the course you have chosen. However, such information and the extent of coverage might differ from one lender to another.
Characteristics of a student loan:
Prior to getting a student loan, it is vital to know some details about the same.
You can opt for an online personal loan without the requirement of any collateral in case the amount is lower than Rs.7.5 lakhs. However, if the borrowed loan amount goes beyond this, you will be required to provide a third-party collateral and guarantor. For loans amounting to less than Rs.4 lakhs, no collateral or guarantor is needed.
Keeping the loan EMI and other interest payments aside, there also are processing fees, late charges and other prepayment costs applicable to getting student loans. Such add-on expenses will differ according to the lender you select.
Student loans do not need to be redeemed on the spot, since repayment only begins six months to one year after the completion of the course. The repayment duration for a student loan varies anywhere around five to seven years, and few lenders also extend this duration up to fifteen years.
- Tax benefits:
The applicant of a student loan can get tax exemptions and rebates on interest paid under Section 80E of the Income Tax Act of India.
Eligibility Criteria and Documents:
For getting a student loan in India, you are required to cater to specific eligibility criteria and show relevant documents so that your application gets processed smoothly. Given below is a cheat sheet for you to keep handy if you are considering applying for online loans.
- The applicant has to be a citizen of India between 18-35 years of age when making the loan application.
- The applicant should have his admission already secured to the course prior to applying for the loan.
- The applicant’s higher secondary education needs to be completed.
- The co-applicant’s monthly salary should meet the guidelines set by the lender’s minimum income parameters.
- Also, having a good academic background is a bonus.
Making an application for a student loan in India is a smooth and hassle-free process since education loans come under the priority category as per the RBI’s guidelines. You can enjoy a smooth application experience, simple terms and easy repayment windows. It is also suggested that you conduct a decent amount of research, follow proper due diligence, and compare terms before choosing a lender for getting loans online.