Are you a student struggling to meet your education expenses? Have tuition fees, books, or other expenses strained your budget? If yes, a personal loan could be the perfect solution for you.
But, choosing the right personal loan can be a challenging task, especially when there are so many options available in the market. In this blog post, we will discuss the best personal loan options for students so that you can make the right decision.
What is a personal loan?
A personal loan is a type of unsecured loan that can be used to meet personal needs. There is no need to pledge any property. This loan is offered by various banks and NBFCs.
Why is a personal loan important for students?
- Funding higher education: Studying abroad or enrolling in expensive courses incurs high costs. A personal loan can help meet this expense.
- Meeting additional expenses: A personal loan can be an option to meet the shortage of funds for books, fees, hostel, or other needs.
- Help in emergencies: A personal loan can also help to meet sudden medical emergencies or family needs.
Things to consider before taking a personal loan
Assess your needs: How much money is needed, and for what period?
- Compare interest rates: Compare interest rates of different banks and NBFCs and choose the institution with the lowest interest rate.
- Check EMI affordability: Make sure you will be able to pay the EMIs comfortably.
- Check processing fees and other charges: Some banks and NBFCs charge processing fees, prepayment charges, etc.
- Read terms and conditions carefully: Understand the terms and conditions of the loan, especially the interest rates, EMI calculator, repayment period, and other charges.
Best Personal Loans for Students
Axis Bank Personal Loan
Features:
- Easy online application process
- Fast approval and disbursement of funds
- Flexible repayment tenure
- Minimal documentation required
- Interest rate: Starting from 10.50% p.a.
- EMI: Starting from ₹1,500 per month
HDFC Bank Personal Loan
Features:
- Instant disbursement of funds
- Flexible repayment tenure
- Minimal documentation required
- Online application and tracking
- Interest rate: Starting from 10.75% p.a.
- EMI: Starting from ₹1,500 per month
ICICI Bank Personal Loan
Features:
- Instant disbursement of funds
- Flexible repayment tenure
- Minimal documentation required
- Online application and tracking
- Interest rate: Starting from 10.75% p.a.
- EMI: Starting from ₹1,500 per month
SBI Personal Loan
Features:
- Credibility of a government bank
- Flexible repayment period
- Minimum documentation required
- Online application and tracking
- Interest rate: Starting from 10.75% per annum
- EMI: Starting from ₹1,500 per month
How to choose the right personal loan
- Assess your needs: How much amount is required and in how much time can you repay?
- Compare interest rates: Compare interest rates of different banks and NBFCs and choose the institution with the lowest interest rate.
- Check EMI affordability: Make sure you will be able to pay the EMI easily.
- Check processing fees and other charges: Some banks and NBFCs charge processing fees, prepayment charges, etc.
- Read terms and conditions carefully: Understand the terms and conditions of the loan, especially about interest rates, EMI calculator, repayment period, and other charges.
Documents required to avail a personal loan
- Aadhaar Card
- PAN Card
- Income Certificate (Salary Slip, Form 16, ITR)
- Passport size photo
- Mobile number and email ID
- Rental agreement or property documents (if applicable)
Process of availing a personal loan
- Online application: Most banks and NBFCs offer online application facility.
- Document upload: Upload the required documents online.
- Document verification: The bank or NBFC will verify your documents.
- Operation and approval: If your profile is approved, you will be called for a procedure.
- Funds receipt: Once the procedure is completed, the funds will be transferred to your account.
How to use a personal loan correctly
- Set goals: Clearly define your goal, such as higher education, medical emergency, or home repairs.
- Make a budget: Create a budget and control your expenses.
- Pay EMIs on time: Paying EMIs on time will improve your credit score.
- Avoid unnecessary expenses: Avoid unnecessary expenses and spend money only on essentials.
Conclusion
Personal loans can be a useful financial tool for students, but it should be used carefully. With the right planning, budgeting, and timely repayment, you can avail a personal loan to make your dreams come true.