Two Ways You Can Pay for College Without Your Parents’ Help

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For many, having a strong educational foundation is important, which often means getting a degree from an accredited college or university. The cost of education, however, is a major deterrent for both parents and students aiming for top universities. 

 

 

Thankfully, modern financing instruments like an instant loan for education have made it much easier to pursue your aspirations without letting a lack of funding stand in the way.

You can apply online from a loan app and the process is very simple. This is because major lenders have basic qualifying requirements so you can get approval on your instant loan application in minutes. 

Best of all, you can avail many of these financing options by yourself, and this eliminates the need to depend on your parents for financing. To help you better understand these options, read on.

 

Opt for a traditional education loan in India

Typically, a traditional educational loan is offered by a bank and often covers reputed universities and courses. The important documents for loan approval include the acceptance letter from your college, your ID proof, bank statements, and loan application form among others. 

While the loan processing fees and other charges of this loan are low in comparison to others, the criteria for approval are stringent. Traditional education loans are usually approved for courses that guarantee a job for the student.

Depending on the course or university, the majority of banks place an upper limit on the loan amount ranging from ₹1.50 Lakhs to ₹1.50 Crores[EW1]. The higher loan amounts are usually reserved for students pursuing medicine or aviation[EW2].

The most important aspect of education loans from banks is the requirement of collateral as security. This usually applies for a loan amount above ₹7.5 lakhs[EW3]. This aspect often causes delays in the approval of your loan application as it requires the property collateral to be evaluated.

In terms of tenure, banks have flexible repayment durations generally ranging from 7 to 15 years. However, not all traditional education loans cover expenses related to education such as travel, accommodation, course material, and more. Most cover only the tuition cost.

 

 

One of the advantages of this loan is that it offers students a moratorium. This is the period during which no repayment is required and is usually for the duration of the course. This helps students repay the loan after completing their education and once they have a job.

 

Apply for an instant loan through an NBFC  (non-banking financial companies)

A personal loan for education is also called an instant loan, which is usually offered by non-banking financial companies. These are usually easier to apply for, have simple eligibility criteria, and have minimal requirements for paperwork.

Since these are collateral-free loans, you do not need to risk your assets to finance your education. You can also take this loan for all types of courses and colleges, as there is no list of approved institutions or programs that you need to worry about.

   

What’s more, you can apply for an instant loan in minutes and get the money in your bank account as quickly as a day. This speedy disbursal helps if you need to pay your tuition fees to the college to confirm your seat.

Since this instant loan is a personal loan that doesn’t come with any limits on how you use the funds, you can use it not only to finance your tuition fees but also your accommodation, travel, books, laptop, and more.

Some of the drawbacks of an instant loan for education is that you don’t normally get a moratorium. While you have flexible tenures to choose from, which are usually 1 to 5 years, repayment starts immediately. You can address this by using any savings you may have or drawing from the education fund that your parents may have started for you.

You can rely on an instant loan to benefit from the flexibility and convenience of borrowing if it fits your educational needs. With zero collateral requirements, flexible tenures, and easy documentation, they’re the perfect tool for acquiring higher education.

Now that you have a much better understanding of how an instant loan works, apply for one on a loan app  The Bajaj Markets App is one you can rely on as this digital marketplace offers a range of financial products from top lenders.

Download it from the Google Play Store or App Store for the best deals and offers and finance your education stress-free.