Quick Guide About Education Loan

Quality education gives your children an opportunity to improve their skills and employability. Whether you choose to offer this to them through universities in India or abroad, it can cost you a hefty amount. To cover the expenses incurred in a hassle-free manner, without depleting your savings or compromising your retirement fund, consider taking higher education loan from financial institutions like Bajaj Finserv. 

Here’s all you need to know about this education loan.

How is a personal loan for higher education better than an education loan?

As the name suggests, an education loan offers financing for the purpose of helping you meet the rising costs of education. However, this form of financing has strict terms governing how the amount can be used. For instance, in some cases you can only use it towards the tuition fee. Moreover, the eligibility criteria for this loan are stringent and to get an amount running into tens of lakhs, you typically have to offer an asset as collateral. 

On the other hand, when you opt for Bajaj Finserv Personal Loan for Higher Education, you get an amount of up to Rs.25 lakh, which unlike a regular education loan, comes with no restriction on the usage of the amount. This means that you can use it to pay for tuition, travel or living expenses. Additionally, Bajaj Finserv does not demand collateral, provides competitive personal loan interest rates and has a flexible tenor of up to 5 years for repayment.  

Best of all, Bajaj Finserv offers a Flexi Loan facility that allows you to borrow funds on the go, helping you finance your education expenses as and when they arise. With this facility, you can withdraw funds from your total sanction, multiple times, without having to make several fresh applications. Here, interest is charged at the end of the day, only on the withdrawn amount. This is in contrast to a regular education loan where the entire sanction is disbursed into your bank account all at once and interest is charged on the entire amount. 

What are the eligibility criteria for a personal loan for higher education?

You can apply for this loan from Bajaj Finserv by meeting the following personal loan eligibility criteria:

  • You must be an Indian citizen residing in the country
  • You must be between 23 and 55 years of age
  • You must be a salaried individual employed at an MNC, private or public organisation
  • You must meet the minimum salary requirement based on the city you live in 

Apart from nominal personal loan eligibility criteria, Bajaj Finserv also stresses on minimal documentation for an application process that’s truly simple and straightforward. Here are the basic documents you need to furnish to apply for the loan. 

  • KYC documents
  • Employee ID card
  • Salary slips of the past 2 months
  • Bank account statements of your salary account of the past 3 months

In addition to these basic documents, you may have to provide a few additional documents during loan processing for further verification. 

What are the factors affecting this education loan’s EMIs?

An EMI or Equated Monthly Instalment is the amount you will have to pay every month throughout the tenor to repay the loan. Therefore, it’s best to pay attention to EMI calculation before you apply for the loan, as it determines the affordability of this form of financing. 

To compute the EMIs before applying for the loan in mere moments, you can use the online personal loan EMI calculator, which is a free tool. This online tool takes into account the loan principal, tenor you have opted for, as well as the interest rate, to provide you with the EMI. Should you find this amount to be too high, you could lower the principal, extend the tenor, or do both. However, keep in mind that increasing the tenor will increase the total cost of the loan.  

How to apply for an education loan from Bajaj Finserv? 

To ensure that accessing funds is as convenient as it can get, Bajaj Finserv allows you to apply for its personal loan for higher education online. All you need to do is:

  • Visit the official website and navigate to the loan application form
  • Fill the form with the necessary details such as your financial, personal, and employment information 
  • Select the loan amount and tenor of your choice to get online approval in under 5 minutes 
  • Submit the documents to the representative who will get in touch with you 
  • Receive money in your bank account in under 24 hours of document verification 

Bajaj Finserv also offers customised deals that provide you with the necessary funds even quicker. So, make sure to check your pre-approved offer for an education loan from Bajaj Finserv before you apply.