With rising expenses of education in India, a large number of Indian students from humble backgrounds struggle financially to pursue their higher studies. A recent report from NSO revealed that almost 70% of rural Indians could not complete their 10th standard education, whereas the number stands at 40% for urban Indians. It further confirms that only one person among 10, possesses a graduation degree and above.
Nonetheless, with times, this scenario is changing, as the Government is providing financial assistance to potential talents who are in dire need of monetary assistance. Alternatively, personal loan for students from various financial institutions is another excellent option that allows students from a financially weaker family to realise the dream of continuing their education further.
Options for students to finance their education
While opportunities to study abroad have increased by leaps and bounds, its affordability is still questionable. Several universities now offer a plethora of under graduation and post-graduation courses. However, one of the vital factors that are restraining students from enrolling for these various options is inadequate funds.
Here’s a list of options that students can consider to finance their education from any reputed institution.
One of the most convenient ways to fund your higher education is student scholarships. The Government of India and its affiliated educational institutions periodically offer scholarships to deserving candidates to finance higher studies. Some of the popular scholarships available include –
- Targeted scholarships
- Sports scholarships
In each of these categories, students need to fulfil specific eligibility criteria to qualify for such scholarships. Those failing to satisfy these criteria can also opt for other financing options like an education loan or personal loan for abroad studies.
- Education loans
Every year the Government grants scholarships only to a limited number of students. Those who don’t qualify for them can consider opting for an education loan that individuals can borrow by pledging collateral.
Nonetheless, education loans merely finance a student’s tuition fees. Other related expenses are not covered. In such a scenario, alternatively, students can finance their education abroad with a personal loan.
- Personal loans for students
While education loan is strictly allotted for meeting tuition costs, a personal loan for students fulfils a wide range of academic requirements. Following are some of the features of personal loans for education –
- High loan amount
Since personal loan does not come with end-use restrictions, individuals can get a substantial amount through this advance. For instance, a lending institution like Bajaj Finserv offers a personal loan of up to Rs.25 lakh to eligible borrowers.
The NBFC also extends pre-approved offers to make the personal loan application process effortless and prompt. Such offers are available for other financial products as well, including personal loans, business loans, etc. You can check your pre-approved personal loan offer just by sharing your name and contact number.
- Flexible tenure
The repayment structure of personal loans for students is convenient with flexible tenure of up to 60 months.
- Minimal documentation
Since personal loans do not require any collateral, the documentation process is minimal, leading to instant approval.
Due to these borrower-friendly features, a personal loan is immensely popular among students aspiring to pursue their higher education abroad.
In order to finance their education, students must thus take all the options into consideration before making an informed decision. On failing to secure a scholarship, a personal loan for students can be an excellent option to look into. Along with that, you should also be informed about how to plan your personal loan EMI repayment better to manage your ensuing financial liabilities with ease.