Going to a college to pursue higher education courses requires a large sum of money. Hence, there are options for students to take education loans. So, if students are not able to pursue their higher education courses, they can apply for a student loan in India to pursue such courses.
However, not many students are aware of a student loan in India. Also, even if some do know about the student’s loan, they do not have much knowledge about it.
Hence, in the following content, you will get all the vital information about student loans in India that you need. Additionally, you would learn about how you can apply for a students loan.
About Students Loans
Students’ loans are similar to other loans, except that this loan is provided for the students to support their education fees. So, students can take loans from the government or private lenders to pay for college.
Furthermore, student loan interest rates are very low in comparison to other loans, so it can be beneficial in terms of saving a significant amount of interest. As a result, students that are financially weak can apply for a student loan. Additionally, students can get anywhere from 4 lakhs to 15 lakhs for their student loans.
What Documents Are Required in Order to Apply for an Education Loan?
Students have to submit some documents to their lender when they are applying for a student loan. Hence, below are mentioned the documents you need for a student loan:
- You have to submit your KYC
- Copy of your every educational documents
- admission letter of the Institute along with fees details.
- Bank statement of the past six months
- Some proof of co-borrower
- Collateral documents
- Family income details
Apart from that, the requirements for the documents can vary for different lenders. However, the listed above documents are the basic requirements that are needed when you apply for a student loan.
How Do I Apply for a Student Loan?
First, education loans differ from lender to lender. Also, the student loan interest rates are around 10% to 15% in India. So, if you want to apply for a student loan, you must check the interest rate.
Afterwards, check the documents required for the specific lender, and after that, you can apply to the lender. So, if you are eligible for the loan, you can get the loan according to your education expenses.
What Are the Advantages of Student Loans?
Some of the major benefits the students receive are listed below:
- Because student loan interest rates are not prohibitively high, you can easily refinance your loan.
- When you take an education loan, you do not have to ask for money from your parents to pay for your college fees.
- Taking out a student loan can help you maintain a better credit score and will also be advantageous for your future loans.
- This helps your family’s savings be safe and be useful in some other emergency situations.
Can Students Apply for a Student Loan When They Pursue Distance Learning Courses?
No, students cannot apply for a loan if they are pursuing distance education. However, the good news is that distance learning courses are not so expensive and are affordable for even financially weak students. Hence, in most cases, you do need a student loan to pursue distance learning courses.
So, pursuing distance courses, such as enrolling for an MBA correspondence degree, can be a worthwhile decision if you want to complete your post-graduation degree. Additionally, there are various other distance education degree or diploma courses that students can opt for to complete their higher education courses.
What Are Some Key Points About Student Loans?
There are some points you should keep in mind before applying for student loans.
- Some students think that their interests do not grow while they are in college. However, that is not true. Student loans accrue even if you are in college.
- You should keep in mind that student loans can also affect your credit score. So you have to make the payments on time if you want to have a good credit score.
- It is not necessary to pay off student loans first. So, if you have other loans on your credit card, it is best if you pay them off first. Also, you do not have to worry about paying your student loans first as they have a very low-interest rate.
- It is funny that many students think they can get away with the loan if they claim bankruptcy. Though it is true, students do not have to pay their loans if they get bankrupt. However, it is a difficult process and it also has some consequences.
- You can refinance your student loan. However, refinancing is not always good for the student.
- There are various methods to pay for the loans, so students can choose the method they think is most convenient for them.
With the above information about student loans, you can now decide whether to take the student loan. Also, you can apply for a students loan from the right lenders that offer a lower interest rate.
Additionally, to distance education, you can apply to any distance education universities that are authorized by the UGC-DEB to complete your graduation degree in distance mode.