Can I Get a 20 Lakhs Personal Loan for Higher Education?

While pursuing higher studies can open doors to greater career prospects, it comes with several considerations. The most important of them is financing higher education expenses such as tuition, studying materials, and living expenses if you are moving away from home. The list of expenses can seem neverending, but it can be made more manageable through a loan for higher education. If you are considering an INR 20 lakhs personal loan for higher education, this article will take you through all you need to know.

Understanding Personal Loan for Higher Education

With the cost of higher education skyrocketing, whether in India or overseas, Personal Loans for Higher Education are one of the best means of covering the necessary expenses. Covering multiple costs from tuition fees to living expenses, loans for postgraduate studies offer an opportunity for students to pursue higher education without the immediate financial burden.

Depending on the applicant's eligibility, an INR 20 lakhs personal loan for higher education can come with lower interest rates and flexible repayment terms. It is crucial to understand all the loan terms and the associated costs to make informed decisions. Properly managed, an INR 20 lakhs loan for higher education can be a valuable investment for your future career.

Types of Personal Loans for Higher Education

These higher education funding solutions can be broadly categorised based on location, type of course, and the necessity of collateral.

Depending on the Location:

• Domestic Education Loan - For studying within India.
• Overseas Education Loan - For studying abroad.

Depending on the Course:

• Undergraduate Education Loan - For bachelor's degrees.
• Postgraduate Education Loan - For master's or higher degrees.

Depending on the Type of Security/Collateral:

• Secured Education Loan: Requires an asset such as a property to be pledged as collateral.
• Unsecured Education Loan: Does not require collateral.

Documents Required for Personal Loan for Higher Education

The required documentation may vary depending on your individual profile, where you are going to study, and the lending institution at which you are applying for the loan. However, the below list should give you a general idea of what documents are required for an up to or above personal loan of INR 20 lakhs.

• Personal Documents: Personal documents such as proof of identity documents (PAN and Aadhar Card), photos, and proof of address (utility bills).
• Academic Documents: Documents such as Marksheets (class 10,12, graduation if completed, any entrance exams), transcripts, admission letters from the university, and proof of scholarship (if required).
• Financial Documents: Documents like income tax returns, salary slips, tax returns, proof of assets such as property papers (if required).
• Co-Applicant/Guarantor Documents: If you are applying with a co-applicant or a guarantor, you will need to provide documents to prove their identity, address, and income.
• Additional Documents: If necessary, you may need to provide your passport, visa, and travel and health insurance-related documents.

Steps to Apply for a Personal Loan for Higher Education

You can follow the below general steps to apply for an education loan of up to or above INR 20 lakhs:

• Do Your Research: Compare different loan options for INR 20 lakhs loan for higher education, in terms of interest rates, repayment tenures, any hidden charges and moratorium period (a temporary halt on loan payments as set by the lending institution, to allow you to gain financial stability before the loan repayment starts).
• Check Eligibility and Documents: Ensure you meet the eligibility criteria of your chosen lender and have all the required documents as listed by the financial institution.
• Apply For the Loan: Fill in the application form carefully. Make sure the form is error-free to avoid any delays. You can check with the lender and apply either online or offline (in person).
• Document Submission: If you are applying online, the documents can be uploaded, and submitted manually if applying offline.
• Wait for Approval: Once the lender verifies your eligibility and documents, you will get a loan sanction letter with the terms, such as the amount you are eligible for, and the interest rate on the loan.
• Sign the Loan Agreement: Once you are happy with the terms outlined, sign the loan agreement. The lender will then grant the final approval and disburse the loan into your account.

How to Choose the Best Personal Loan for Higher Education?

Choosing the overseas education loan suited to you is of utmost importance. Below are some things to keep in mind while you look for the best loans for higher education.

• Compare the Available Options: Consider whether you want to apply for a traditional education loan or a personal loan for higher education. Personal loans are unsecured and come with a flexible repayment tenure of up to 60 months*. However, unlike education loans, the repayment for personal loans starts within 30-45 days of loan disbursement.
• Check Your Eligibility: Lenders have some criteria such as credit history, age, academic history, and collateral requirements. Ensure you study the criteria carefully and that you meet these criteria.
• Disbursal of Loan: It is important to ensure the loan is disbursed on time, to facilitate further things like visa application. Consider the visa requirements of your country of study to determine whether you need a lender that provides pre-visa disbursement.
• Remittance of Loan Amount: Check the program requirement to confirm if the funds are to be remitted to the university account or a savings account, and choose the provider who can comply.

Conclusion

As education costs soar, personal loans for higher education can greatly help finance different education expenses from program fees to accommodation costs. If you are considering a personal loan option for higher education, SMFG India Credit offers loan amounts of up to INR 30 lakhs* with interest rates starting at only 13%* per annum. Parents can also avail of this loan option to fund their child’s education in India or abroad. We recommend you calculate your monthly payments using our free online personal loan EMI calculator and check your eligibility before you apply online. Feel free to contact us for more information.