Published on Dec 22, 2020Updated on Oct 25, 2023
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 instant 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.
The following sets of documents required for instant personal loan:
Individuals can apply for a personal loan either through online mode or by visiting the nearest SMFG India Credit branch office.
A reference number will be generated against your application for tracking your application status and future reference. You can also use SMFG India Credit InstaLoan App to avail a personal loan.
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.
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.
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*Terms and Conditions apply. Loans are disbursed at the discretion of SMFG India Credit.