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Points to consider while getting a personal loan for higher education

With the rising cost of living, loans have become increasingly important in many people’s lives, including paying for school. These personal loans are beneficial to everyone who wishes to further their education. In general, lenders do not provide education loans to students on their own. Most lenders want a co-applicant, usually one of the parents. So that they have some recourse if the loan goes into default.

personal loan

To apply for an education loan, one must have a letter confirming the admission to a course. Lenders would not give an education loan without confirmation. These loans are often used to finance tuition and accommodation expenses. As well as the cost of books and, in some cases, computers. Some lenders have set limits on the amount of money they will provide for specific courses.

A different option for personal loans

Personal loans, on the other hand, give borrowers more flexibility. “A more convenient option would be to go for a personal loan instead,” says Gaurav Jalan, CEO, and Founder of mpocket.

Because lenders do not ask for reasons for the personal loan such personal loans for education can be used to cover any education-related expenses; such as course fees, lodging, travel, living expenses, course material, and even smaller miscellaneous charges that may arise. A personal loan application is also less time-consuming, requires less paperwork, and has a speedier disbursal period.

Gaurav Jalan, CEO, and Founder of mpocket

“Such unsecured personal loans do not require collateral and do not require a co-applicant,” he continues. This kind of loan, on the other hand, will normally have a lower maximum loan amount. And higher interest rates than an education loan.” Parents can apply for small-ticket or large-ticket personal loans on behalf of their children or students, depending on their needs at the time. “Personal loans can assist reduce the financial burden of schooling in today’s society; without all the stress associated with applying for an education loan,” Jalan adds.

Regardless of whether they apply for a personal loan for education or an education loan, experts recommend that all borrowers take notice of all repayment alternatives, loan length, and interest rate. “The borrower must analyze all options before making a final selection on a certain financing option,” Jalan continues. Only take out a loan if you’re certain you won’t be able to pay for these fees out of pocket”. As a result, carefully analyze your needs and request a specified loan amount. For more such updates, keep watching this space!

 

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What is a top-up loan and when should you go for it?

A top-up loan, along with a personal loan, a credit card, and other loan options, is an excellent way to obtain emergency cash. However, experts advise that at first, you must understand what a top-up loan is. And, when should you go for it?

Banks, housing finance firms, and other financial institutions offer top-up loans; which allow borrowers to borrow a specific amount of money in addition to their home loans. As a result, they are financing choices for borrowers who already have a loan with the lender, such as a home loan. Borrowers are normally only eligible for a top-up loan in this situation if they have been paying their EMIs on time and without default for at least a year.

“A borrower’s track record of repayments is one of the primary determining elements for the eligibility for top-up loans,” says Gaurav Jalan, CEO, and Founder of mpocket. This type of loan normally comes with the same terms and conditions as the original.”

In the event of an emergency, most people will either take out a personal loan. Or they will liquidate assets such as gold and property to get money. Experts believe that in some cases, a top-up loan on an existing house loan is a preferable option. Since top-up loans are readily available and come with a low interest rate.

Why top-up loan is right for you?

The most significant advantage of a top-up loan is that the borrower only has to complete minimal documents. Simply put, their existing loan EMIs will increase in proportion to the increased borrowing. It eliminates the need for the borrower to apply for a new loan; because it is approved based on the borrower’s existing loan with the lender. This streamlines the procedure and speeds up disbursement. As a result, this loan is a considerable choice for immediate funding.

Top Up Loan

“This makes it a perfect option in case of an urgent need for money,” Jalan explains. These loans are available for similar use as the original loan, but with fewer restrictions”. A home loan, for example, can only be used for that specific purpose. However, because a top-up loan is tied to an existing home loan, the borrower is not obligated to use the money for refurbishment or house repair. So this kind of loan is a good choice to borrow funds for house repairs or furnishing; as well as larger needs like business expansion, kid education, medical emergencies, and weddings. In summary, top-up loans have no restriction for their use.

“These loans are a perfect alternative in case of unanticipated occurrences or whenever one requires a personal loan, a loan against their property, or even gold,” Jalan continues. It’s a more convenient and hassle-free option in such situations.

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How to get Instant Personal Loan!

In our lives, we all have been in situations where we were in desperate need of money. In this article, we will explore what other options we have to ease our finances, how to get a Personal Loan instantly, and the role of CIBIL Score. Though they are many advertisements we see every day on both online and offline mediums. But availing of these Personal Loans without due knowledge may backfire.

How Banks and NBFCs are different from each other?

Banks are the organizations that offer saving accounts, current accounts, loans, and other financial products. In India Banks operate with the permission of the Reserve Bank of India. Banks can be classified into Government-owned, private banks, and cooperative banks.

NBFCs or Non-Banking Financial Companies

These are private financial institutions offering various financial Products. They are only limited to offer loans and fixed deposits. NBFCs operate in India as per the Indian Banking Laws. They offer loans at a higher interest rate than banks and usually have easier eligibility criteria.

Now, we know the difference between banks and NBFCs. There are many websites and apps working as third-party providers. These third-party providers take big loans from Banks and distribute that money into smaller loans or personal loans to be precise. They offer these small personal loans to consumers for a short period i.e. few months. However, the Interest rate is usually high on these platforms.

loan application

As consumers, we can seek loans from any of these providers. But before taking any loans, always do your own research about the Institution and the product. The few important factors are the reputation of the financer, interest rate, duration of the loan, etc.

Instant Personal Loan

Instant Loans are short-term, small loans that can be availed from the comfort of our home. There are banks, NBFCs, and other third-party platforms that are offering such loans. But not all platforms are alike.

Now that you have done the research and short-listed a few financers. We need the knowledge of the CIBIL score.

Personal Loan Thumbnail

What is CIBIL Score and How it affects your Personal Loan?

CIBIL Score (or Credit Score) is given by the TransUnion CIBIL. This score represents the credibility of the loan seeker. It is based on the past performance of an individual’s loan payments. Hence, the higher the CIBIL Score greater the odds of loan and the lower the interest rate.

CIBIL

It is advisable to maintain a good CIBIL Score. We must plan our finances accordingly to ensure a good CIBIL Score. Timely payment of EMI is one great habit to maintain a good CIBIL Score.

Loan Application

When we apply for a loan, Financial Institutions assess our loan application over certain parameters like employment status, salary, CIBIL Score, etc. One can check the CIBIL Score of anyone using the Pan Number of the subject.

All the institutions ask loan seekers for certain documents. These documents include PAN card, Aadhar Card, account information ( i.e. bank statement or passbook), etc. These documents are then verified and only after the verification, our loan is processed.

Who should you approach?

It is always advisable to only avail loans from credible government-approved institutions. There have been many reports of incidents where financers were accused of exploiting consumer’s rights. Nevertheless maintaining a good CIBIL Score will help in your future of the odds of getting any loans.

Below are few platforms that offer instant loans. But always do your own research before availing of any loan.

Government Banks

  • State Bank of India
  • Central Bank of India
  • Punjab National Bank
  • Bank of Baroda
  • Corporation Bank
  • Canara Bank

Private Banks

  • Kotak Bank
  • HDFC Bank
  • ICICI Bank
  • Axis Bank
  • Yes Bank
  • RBL Bank

NBFC

  • Tata Capital
  • Mahindra Finance
  • HDB Finance Services
  • Aditya Birla Capital
  • Bajaj FinServ

Third-Party Platforms

  • Dhani
  • Home Credit
  • MoneyTap

Kindly read every loan-related documents carefully before signing. This is not a promotional article for any of the institutions mentioned above.

For more updates like these, keep watching this space!

Contact us to get more knowledge about everything related to Personal Loans and more. or you can directly apply on our website.