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Personal Loans For Funding Your Child's Education?

Published on Aug 9, 2019Updated on Jan 12, 2024

Personal Loans For Funding Your Child's Education?

You have given your child the needed headstart in life by choosing the best schools and colleges for him / her. Your child, too, has gone on to ace every opportunity with flying colours. Now s/he has secured admission for further studies in one of the most prestigious universities in the world. This is a moment of great celebration, of pride and joy. Yet, there is a nagging worry floating in your mind - how will you secure the needed funds at such a short notice?

There are various avenues to partner your child’s further education. To pay for it, you could think of liquidating your life savings. However, it may not be wise to spend a large amount of your savings for a single expense. In case of a financial emergency, you would probably not be left with any backup. A wiser move would be to apply for a loan to fund this expense. Though there are various kinds of loans that you could get, the ideal one would be a Personal Loan.

A Personal Loan for higher studies would be one of the best and apt solutions to fund your child’s further education. With this kind of a loan, you don't need to risk any of your assets or provide collateral. These are easily accessible as many banks and financial institutions offer such credits. You can apply for any amount as per your needs and eligibility. The loan tenure is also flexible and ranges from 12-48 months. Depending on your financial profile, you can also negotiate and get an affordable personal loan interest rate.

Applying for a Personal Loan is a rather simple and straightforward process. It's super convenient - you can apply for it from the comfort of your home. You can also be sure of getting an instant approval online for the loan. However, personal loan solutions vary for salaried and self-employed individuals. So get started by simply filling an online application:


Documents required for Personal Loan:

The following are some of the documentation requirements for Personal Loan. Please note that depending on your requirement and the lender’s policies, additional documents may be requested.

  • A recent photograph
  • PAN Card
  • Address proof
  • Bank statements
  • Evidence of business existence, company’s financials and duly certified income tax returns (business and individual) in case of self-employed applicants
  • Form 16, Income Tax returns and pay-slips, in case of salaried applicant

Your income and other relevant parameters decide your loan eligibility. In the case of a salaried individual, your credit eligibility could be as high as `25 lakhs while for a self-employed business owner, it could go up to `30 Lacs. Depending on the principal, interest rate and loan tenure, an equated monthly installment (EMI) can be arrived at. An EMI is a monthly amount that comprises of the principal and interest and facilitates easy repayment over the tenure of the loan. Do make sure that the EMI amount that is quoted to you at the time of loan application is something that you can manage after all your existing monthly obligations. Please also check whether the EMI amount conveyed includes other costs such as processing fees.

A Personal Loan for higher studies could be your best option to fulfil the dream of sending your child for higher education abroad. With its multiple advantages, it is the ideal way to finance your child's future at your own terms. Start with finding a reputed financial partner that has wide reach and relevant products. A good loan provider will always tailor your loan to suit your requirements and offer exclusive benefits and features.

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*Terms and Conditions apply. Loans are disbursed at the discretion of SMFG India Credit.