As the cost of education continues to rise, tuition fees are no longer the sole concern for students and their families. From textbooks and accommodation to daily commuting costs, the additional expenses associated with education can be overwhelming. An instant loan could be a viable solution for covering rising education costs.
The Growing Cost Of Education
Education costs are increasing at a rate of 11-12% annually, far outpacing general inflation of 5-5.5%, according to a report by BankBazaar. This steep rise has left many families grappling with the challenge of financing their children’s academic aspirations. While scholarships and grants are helpful, they are often insufficient to cover the comprehensive costs of modern education.
What Are Additional Education Costs?
Beyond tuition fees, students face a range of expenses, including:
- Accommodation: Dormitory or off-campus housing can significantly add to the cost of education, especially for those moving to metropolitan cities or foreign countries.
- Books and Study Materials: The cost of textbooks and study materials can go up to thousands of rupees in a single semester, elevating overall expenses on education.
- Technology: Laptops, tablets, and software essential for learning come with a hefty price tag.
- Transportation: Daily commuting, study trips, or international travel for global programmes can be costly.
- Extracurricular Activities: Many courses require participation in workshops, conferences and internships, which often come with registration and travel fees.
- Living Expenses: From groceries to healthcare, day-to-day living costs are unavoidable for students living away from home.
- Examination and Library Fees: Many institutions charge separately for semester exams and library resources.
- Fieldwork and Internships: Practical learning often involves additional charges for transportation, accommodation and equipment during internships or fieldwork.
What Are Instant Education Loans?
Instant educational loans provide students with quick access to funds for academic purposes, typically through minimal documentation and fast processing times. These student loans are often offered by banks, NBFCs (Non-Banking Financial Companies) and online platforms.
How Instant Loans Help Cover Extra Costs
Instant loans, particularly those tailored for education, are a flexible and efficient way to address these financial challenges. Unlike traditional education loans, instant loans are quick to process, allowing students to access funds immediately for urgent needs.
- Instant Disbursement: Customers can get the loan amount in their bank accounts within a few minutes or a couple of hours, depending on the lender. This can help to make timely payment for admission fees and other academic purposes.
- Tax Benefits Under Section 80E: The tax benefit tied to education loans is a significant advantage. Under Section 80E of the Income Tax Act, 1961, the entire interest amount paid on the loan is eligible for deduction, with no upper limit. This effectively reduces the financial burden and brings down the net cost of borrowing.
- Effortless Application Process: The entire application process can be completed online through internet banking in just a few clicks. Borrowers can upload necessary documents digitally, making the process seamless and user-friendly.
- Reduced Turnaround Time: One of the major advantages of instant student loans is the significantly reduced processing time. Instant approval and sanction letters make sure students have immediate access to funds for urgent needs.
If you are looking forward to availing a personal loan to finance the education of your children, you can apply for an instant loan through the Moneycontrol app and website. The interest rates start at 10.5% per annum and Moneycontrol offers loans in partnership with eightlenders. To make the process easier, Moneycontrol app allows applying for loans up to Rs 50 Lakhs in a 100% paperless process.
Eligibility Criteria For Instant Loans
- Age: Applicants must be 21–60 years old.
- Income: Minimum income requirements vary by lender, typically starting at Rs 15,000 per month.
- Employment Status: Salaried individuals, self-employed professionals, and business owners are eligible.
- Credit Score: A high credit score (generally 700+) improves approval chances.
- Credit History: Existing customers with a reliable transaction history may qualify for pre-approved loans.
- Residency: Applicants must be Indian residents with a valid address.
How To Apply For An Instant Loan
Documents Required- Identity Proof: Aadhaar, PAN, driving licence, or any valid government-approved identity proof.
- Address Proof: Utility bills, rent agreements, Aadhaar and other government-approved address proof documents.
- Income Proof: Salary slips, bank statements, or ITR for the last two years.
- Employment Proof: Offer letter, company ID, or employment certificate.
- Research Lenders: Compare offers from banks, NBFCs, and apps based on interest rates, loan tenure and fees.
- Download Loan Apps: You can download the Moneycontrol app to apply for personal loans up to Rs 50 lakhs.
- Complete the Application: Fill out personal, professional, and financial details.
- Upload Documents: Digitally submit required documents for verification.
- Approval and Disbursement: Once approved, the loan amount is credited directly to your bank account.
Repayment Tips
- Borrow only what you can repay comfortably.
- Determine the EMI amount using an online EMI calculator. This will help you to choose the best loan offer and repay the amount without default.
- Ensure timely payments to maintain a healthy credit score.
- Compare interest rates and terms and conditions for personal loans from various lenders. This can save you some money on your total interest outgo.
To conclude, with the advent of digital lending platforms applying for a personal loan has become quite convenient. As the education costs have increased significantly over the years, securing a personal loan to fund the higher studies of your children could be a suitable option.
Online lending tools like Moneycontrol app could be helpful in availing an instant education loan, or student loan. In a 100% paperless process, you can get loan offers up to Rs 50 Lakhs from eight lenders through the Moneycontrol app and website. The instant loan for students can be disbursed within a few minutes to a couple of hours depending on the lender.
Disclaimer
This piece/article was written by an external partner and does not reflect the work of Moneycontrol's editorial team. It may include references to products and services offered by Moneycontrol.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
