Education Loan: The expense associated with education has significantly risen over the years. In the current inflationary climate, students often find themselves needing to secure loans even for minor expenses. A personal student loan may serve as a more suitable option in such cases. This document provides comprehensive information regarding personal student loans.
Students can obtain a personal student loan through various straightforward methods, typically from banks or financial institutions. However, it is crucial to thoroughly understand the terms and conditions prior to securing a loan. Generally, applicants must be at least 18 years old, and it is advisable for a reliable individual (such as a parent, guardian, or co-signer) to have a stable income.
Additionally, possessing a good credit score is essential. The reputation of the educational institution to which the student is applying can also influence the likelihood of loan approval. For further details, it is recommended to consult the relevant bank.
Different financial institutions impose varying interest rates and conditions on personal student loans. For instance, the State Bank of India (SBI), the largest bank in the country, offers interest rates ranging from 8.05% to 11.75% per annum. In contrast, ICICI Bank has a rate of 10.25% per annum, while Axis Bank’s rates range from 13.70% to 15.20% per annum.
Interest rates are subject to change based on the bank’s policies. Therefore, it is advisable to reach out to your selected bank to gain a thorough understanding of the loan terms before proceeding.
Advantage
One of the primary benefits is the immediate availability of funds from the bank to meet your needs. The repayment terms for this loan are typically straightforward and manageable. Furthermore, this type of loan does not require collateral, making it accessible for many students.
Disadvantage
On the downside, the interest rates for personal student loans are generally higher than those for traditional education loans. Additionally, the repayment period is shorter, necessitating quicker repayment by students. Prior to obtaining a student loan, it is important for students to assess their budget and repayment capabilities carefully.