Published on Dec 22, 2020Updated on Oct 15, 2026
In recent times, the cost of education in all stages of academic career has increased several times in comparison to the average per capita income in India. For instance, a pre-school admission in a reputed school itself can go up to Rs. 1 Lakh and there are many other expenses involved in providing quality education. And, these expenses will continue to rise every passing year.
Although such expenses are planned before-hand and accordingly allocated from the monthly household budget, chances of deficit in funds remain. Thus, at such times, one may feel motivated to look for a personal loan for students. However, since students don’t have an income, they will not be eligible for a personal loan. On the other hand, it is very easy to get personal loans that are issued in the name of a working parent, instead of a student's name.
Compared to education loans, which can only be obtained for completion of higher studies and have stringent terms and conditions, personal loans can be obtained by a parent during any stage of their children’s academic career, whether in the primary, secondary or higher education stage. The loan can be obtained in a short time with minimal documentation and eligibility criteria.
The following are the key features of personal loans:
You can also check the maximum loan amount you may be eligible for using the personal loan eligibility calculator, which shows the maximum amount you can borrow based on income, expenses, place of residence and age. Please note that actual eligibility will also take into account other parameters like credit history, repayment history, and so on.
Must Read: 5 Steps to Get a Personal Loan for Online Courses in India
The following sets of documents required for personal loan:
These steps will guide your personal loan application journey at SMFG India Credit:
Secure a personal loan by completing these steps and move closer to realising your financial ambitions.
While applying for a personal loan for meeting the costs related to the education of your child, you can use the personal loan EMI calculator to check the approx estimate of your monthly EMIs and can plan the repayment tenure.
Quality education is expensive. Besides the current requirement, also factor in requirements like travel expenses, increase in tuition fee, cost of study materials & scientific instruments etc. It helps you plan for your child’s education in a better way.
While you have the flexibility to decide the personal loan repayment tenure, never keep you the tenure too short or too long. Having a short tenure will result in a high debt to income ratio, which means a major part of your income goes towards servicing the loan; it will result in your financial weakness and instability. And, opting for a long tenure than required results in higher interest outgo and increase the total cost of the loan.
Must Read: How to Finance Abroad Education with a Personal Loan?
Always check the interest rates, processing fee, prepayment penalty and other costs while applying for a personal loan. If you have a good credit score and sound finances, you can negotiate the rate of interest with the lender.
Through the personal loan, you can ensure your child gets a good education and grows personally, socially and economically.
Important Note: This article is for general informational purposes only and may be subject to change from time to time. As product features, eligibility criteria, interest rates, charges, fees, tenures and other terms may be revised as per SMFG India Credit's policies, readers are advised to refer to the latest details from the respective product pages (please select from the top menu). For the latest loan charges, please visit Charges & Fees Link and for the latest Interest rates, please visit Interest Rate Rationale. Please note that final loan terms, disbursement process and eligibility criteria will depend on SMFG India Credit's policies at the time of loan application.
The content of this article is for information purposes only and does not constitute as, an offer or advise to avail any products or services from, or, a commitment to grant any loan by the company. It is not intended to create any rights or obligations against us. All content is provided "as is" without any warranty of any kind, either express or implied & we disclaim any warranty or representation, whatsoever, in regards to the content. Please refer to the Privacy Policy of the company to understand the use, processing and storage of your personal data.
Was this helpful?
Insurance disclaimer SMICC is registered with the Insurance Regulatory and Development Authority of India (IRDAI) as a Corporate Agent. IRDAI Registration No.: [CA0098] CIN No. U65191TN1994PLC079235. The insurance policy is a contract between the customer and the insurance company, and policy is underwritten by insurance companies. SMICC acts only as the distributor and is not responsible for any risk, policy issuance, claim settlement/repudiation etc. Insurance is the subject matter of solicitation. Purchase of insurance is voluntary and subject to insurer underwriting and policy terms and conditions. Customers are advised to read the policy terms and conditions, benefits, exclusions, claim settlement carefully before purchase. Kindly note that “Insurance Products” are not mandatory for the purpose of the application and disbursement of loan. It shall be the sole discretion of the customer, by providing explicit consent, to avail such insurance along with the Loan.
Beware of Spurious calls/ Fraud phone calls IRDAI is not involved in activities like selling Insurance policies, announcing bonus or investment of premium. Public receiving such phone calls are requested to lodge a police complaint.
