A Comprehensive Guide to Applying for Student Loans

Many want to achieve their goal of higher education and good job opportunities. However, the rising cost of education can significantly hinder the plan. A cash loan online comes to the rescue for those interested in higher education but with limited funds. It helps pay the fees, buy books, and other education-related stuff.

This guide lets us explore who can apply for an education loan, the application process, and the repayment options for student loans in India.

Understanding Students Loan

A student loan is the amount a student can take from a lender to complete his or her education when he or she is short of cash to pay for fees or other educational expenditures. They are very important for those who want to pursue higher education but do not have the financial means to support themselves. There are many banks and other lender who give money to students to complete their studies. The students can return the amount given to them after they complete their education.

Let us understand the details about student loans.

Types:

• Loans that Need a Security Deposit: These are secured loans which require something to be mortgaged against them. They offer lower interest rates and longer repayment terms.

• Loans Without any Security Deposit: Unsecured loans can be obtained directly and do not require mortgages. But, they have higher interest rates and must be repaid quickly.

Eligibility:

• At least 18 years of age
• Indian citizenship
• Good academic records
• Admission letter from a recognised institution

Why is it Important to Understand the Terms of Your Student Loan?

You need to learn about student loan terms, as the information can help you manage your current and future finances responsibly and efficiently. Here are some reasons that answer why is it important to understand the terms of your student loan:

• Loan Repayment: Understanding the loan terms helps in planning all the whens and hows of the repayment, including its schedule and frequency.

• Interest Rates: Knowledge of interest rates on your loan will tell you the total cost of borrowing and help you manage your finances throughout.

• Legal Obligations: Understanding the legal terms and conditions ensures you know your obligations and can fulfil them accordingly.

Who Should You Consult Before Applying for a Student Loan?

When you talk to people who have the knowledge and expertise in loans for higher studies, you will be able to make a better financial decision. So, before finalising your student loan, it is always better to consult experts or experienced people. Here is who should you consult before applying for a student loan:

• Banks and Financial Institutions: You can visit the banks or institutions that offer student loans to understand their loan process, interest charges, and eligibility criteria.

• Education Loan Counsellors: Many organisations and individuals provide guidance and counselling related to student loans. It can help you check the options and choose the loan that fits your requirements.

• Family and Friends: Discuss with your parents, elder siblings, or other family members who can provide information about these types of funding. You can also consult your friends or other acquaintances who have already taken loans for their education.

• Financial Advisors: If you have a financial guide, ask them about the advantages and disadvantages of taking a loan for education. They can help you make a decision that is best for your interests and will not cause any financial problems in the future.

• Online Resources: Many online resources, including bank websites and academic portals, offer information on student loans in India.

Which Documents are Required for a Student Loan Application?

Once you have understood student loans and their terms, another question arises: which documents are required for a student loan application?

You may need the following documents to apply for a student loan in India.

• Aadhaar card, PAN card, passport, or government-issued photo ID.
• Admission letter from the institution.
• Mark sheets from the last qualifying examination.
• Proof of age.
• Bank statements for the previous six months.
• Documents related to property, fixed deposit receipts, etc., for collateral loan.
• Passport-sized photographs of the applicant.
• Brochure or prospectus of the course indicating the cost of study.

Conclusion

Quick student loans are essential for fulfilling your dream of higher education in India. Further, when you have all the details regarding the loan, such as eligibility, process, and repayment options, it becomes more accessible and achievable. mPokket offers quick easy loans to students to help them meet their career goals without worrying about finances. Download the app and explore the different options this reliable funding source offers.