Enrolling in a prestigious university or college means paying premium tuition fees or even moving out of the country. For most of us, footing this bill independently is impossible. This is where student loans can help. So, if you’re planning to pursue higher education but don’t have the capital for it, here's what you need to know about how to take out a student loan.
Apart from the ‘how to pull out a student loan?’ question, other questions like ‘what all will the loan cover?’, ‘what are the eligibility criteria?’, ‘do I have to make a down payment?’, ‘what is the maximum loan amount?’ must be bothering you. If that’s the case, here’s a quick overview that’ll help:
If you can’t figure out how to take out a student loan in India, you can follow this simple step-by-step guide:
In India, both banks and NBFCs offer student loans; however, their interest rates, processing fees, and loan terms differ. Thus, weighing all your options and comparing them is the key to selecting the most suitable lender.
Every lender has an eligibility checklist outlining the applicant's age, courses covered, and institutions included. You must review these parameters before submitting a loan application to prevent application rejections.
You can apply for the loan online on the lender’s website or visit the nearest branch office. Some lenders might also call you in for a counselling session.
This will include your KYC documents, mark sheets, diploma certificates, as well as your course offer letter, collateral papers (if applicable).
Apart from verifying the submitted documents, your lender will also check your guarantor's credit score. Post this, if you’re deemed eligible, the loan application will be approved.
Your lender will directly disburse the sanctioned loan amount into the account of the selected institution. Usually, student loan disbursements post approvals can take up to 2 weeks.
Now that you know how to take out a student loan, getting one to finance your higher education won’t be a hassle. Repaying the loan shouldn’t be a problem, as you can comfortably clear the loan over 15 years. However, you should use an EMI calculator tool to ensure that EMI payments and interest rates fit your affordability parameters.
If your loan requirement is less than ₹5 Lakhs, you can also rely on instant loans from Fi Money. These pre-approved instant loans are available to select Fi users with good credit scores and come with varied benefits like 100% paperless processing, competitive interest rates, and automatic in-app payments.
You are eligible for an education loan if -
Your guarantor’s income matches the minimum income requirements of the lender.
You can take out a student loan by following these four easy steps:
Once verified, your loan will be approved and disbursed after you sign the loan agreement.