Personal Loan & Education Loan - Which one to choose?

Kids these days are consumed by the brimming competition; this is one of the reasons why they want to travel abroad for higher studies. Obviously, the decision to travel abroad is quite crucial & must be well thought out. This can be one big step towards a brighter future. Studying abroad can be the tipping point for many intelligent students aiming high in life. This is especially applicable when the student is doing school and wants to plan higher education by going to reputed colleges. So, how easy is the decision to fly abroad and study? Invariably, this decision involves a larger chunk of financial resources. Arrangement of this kind is cash heavy and requires a reliable source of borrowings. Borrowing from the bank or any financial institution can be the first step after using up owned resources.

Through this blog, we would like to express the difference between education loan v/s personal loan at its best. The basic focus areas would be the process, eligibility and the advantages of education loan over personal loans.

Let’s start with the eligibility criteria for education loans

Personal loans for education work like education loan. It is important to check whether the applicant is eligible for the loan or not. Below provided is the best criteria for the Indian banks to check eligibility of the loan applicant in the first place.

1. The applicant should be an Indian citizen
2. The applicant must have attained the age of 18 years else his/her parents will have to take the loan.
3. The applicant must have a good academic background.
4. The applicant must have secured admission at a recognized international university/institution/college.
5. The desired course which the applicant is going to study must be a technical or professional one, as banks give preference to job-oriented courses.

What are the main documents necessary for applying for a loan?

Whenever an education loan is applied, a few important documents are required for the loan application to turn out successful. Knowledge about the relevant documents is a ‘must do’!

Let’s brief them up as shown before: 

• Filled application form
• Passport size photo of the applicant and co-applicant, if applies.
• Photo ID proof of the applicant and co-applicant like a PAN card, driving license, Voter ID card, Aadhaar card, or Passport.
• Address Proof
• Academic Certificates:
• Mark sheet and graduation certificates of the applicant
• Admission Document shared by the university or college
• Bank statements for at-least last 6 months
• Income documents of the applicant

From loan application to approval and disbursement, the entire loan process is long drawn, so it is always recommended to apply for a loan on time!

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