6 Reasons to Consider a Personal Loan for Your Child’s Higher Education

A quality education is essential in today's dynamic environment. Pursuing our professional degrees from world class universities and colleges has now become a necessity. However, as much as students and their parents want this dream to come true, it's not always the case that they can fully afford it. But finances should be the last reason to stop you.

Therefore, you must opt for a personal loan for higher studies for your child. Unlike education loans, personal loans not only cover your child’s educational expenses or tuition fees but also all their living expenses in case they wish to study abroad.

6 Reasons To Opt For a Personal Loan For your Child’s Higher Studies:

1. High Loan Amount and Quick Disbursal

For you to live comfortably while away from home, NBFCs offer personal loans in the range of INR 50,000 to INR 30 lakhs to cover your outstanding tuition fees and all of your living expenses, including rent, utilities, and other costs of living. This is achievable with personal loans because the loan amount is transferred to the borrower's account shortly after the loan application is approved. After that, the borrower is free to use the money however they see fit.

2. Simple Eligibility

With a credit score of 750 or more, you can get personal loans if you’re salaried or self-employed between the age of 22 and 60. Your location, age, and creditworthiness are just a few other factors that will determine the personal loan eligibility or the amount that is approved. Given that this is a personal loan that you take out to pay for your child's higher education, you are not required to put up any collateral. Additionally, this form of loan is also available to professionals who seek to advance their education in order to improve their career opportunities.

3. Minimal Documentation

We understand that you want the loan application process to be simple and feasible. To make it easy to gather the relevant personal loan documents, we only ask for those that are absolutely necessary:

1. PAN Card
2. Identity Proof (Aadhaar Card, Driving Licence, Passport, Voter ID, etc.)
3. Address Proof (Passport Copy, Aadhar Card, Driving Licence, Utility bills)
4. Account statements of the past 6 months 

For salaried individuals, additional documents required are:

1. Salary slips for the last two months
2. Salary account statements for the last six months 

For self-employed individuals, additional documents required are:

1. Balance sheet and profit and loss account, income computation for the last two years
2. Income tax returns for the last two years
3. Account statements for the last 6 months
4. Evidence of the latest turnover 

Must Read: Personal Loan for Education

3. Affordable Interest Rates

Because you wish to take up a personal loan for your child's higher studies, it is vital that you make the most of your resources. Instead of touching your savings and emergency funds, you can opt for a personal loan with affordable interest rates so that you can pay minimum interest to keep your dreams going. However, it is always important to evaluate your personal financial situation and ensure that you can make the loan payments on time, before making a decision. Do note that personal loan interest rates are determined based on a number of factors, such as your credit score, income level, the loan amount, your creditworthiness, and lender’s policy at the time of application.

4. Easy Instalments and Repayment

Personal loans require you to pay back the loan amount in equated monthly instalments (EMIs). Loan repayment begins right away after disbursement. Many personal loan lenders offer flexible repayment terms, which can range from a few months to several years. Borrowers can plan their finances and budget accordingly with easy EMIs. The repayment period is usually determined by the amount borrowed, the interest rate, and the borrower's ability to repay the loan.

5. No Collateral

You can take up a personal loan for your child’s education from a financial institution that provides collateral free loans of up to INR 30 lakhs* at affordable rates with minimal personal loan documents and flexible repayment terms.

Conclusion

We at SMFG India Credit are aware of the importance of obtaining a high-quality education and how stressful finding the necessary funding can be for your child. Because of this, we offer 100% online application with a maximum loan amount of up to INR 30 lakhs* at affordable interest rates and flexible payback terms. You may start your quick and easy application procedure right away!