Can a Student Get a Personal Loan in India?

Student life is an exciting and challenging phase in life. And sometimes, it gets a little tricky to keep up with bills and expenses. If you are wondering whether you can get a personal loan as a student, read on to get more clarity.

As a student, getting a personal loan depends on many factors. Usually, a personal loan is a loan given to a borrower by a lender without asking the reason for availing that loan. The person who receives the money does not need to pledge any collateral against it, which is why it comes under the unsecured loans category.

Personal loans are quicker and hassle-free compared to other types of loans. You can apply for instant personal loan online at Zype in less than six minutes.

Is It Possible For A Student To Get An Education Loan?

For ease of understanding, let us divide ‘students’ into three categories:

1. Personal Loan For Students Who Are Salaried

The answer is YES. If a person has a steady income through a job and is also enrolled in an educational programme, like a part-time or long-distance course, they will fall under this category.

If this is the case with you, all you need to do is fulfil the minimum basic criteria to get a personal loan. For example, Zype’s eligibility criteria includes full time employment, a minimum monthly salary of ₹15,000 and a valid PAN card and Aadhaar card. Click here to read more about Zype instant loans.

2. Personal Loans For Full-Time Students Who Are 18 Years Of Age & Above

The answer is NO. Loan companies prefer to give unsecured personal loans to individuals who have a source of income.

Also Read: Secured vs. Unsecured Loan: What is the Difference?

If you are a full-time student with no work experience, getting an education loan is the best option for you. You can use this loan to cover your tuition fees, living expenses, books, laptops, transportation costs, etc.

3. Personal Loans For Full-Time Students Who Are Also Minors

The answer is NO. Minors cannot get a personal loan as most banks and financial institutions typically require borrowers to be at least 21 years old.

However, you could take an education loan with a co-applicant who has a regular source of income. The co-applicant could be your parent, adult sibling, etc. Your co-applicant might need to submit the collateral if the loan amount is the amount of the loan. The terms and loan amount limits vary from lender to lender.

Alternatives to Personal Loan for Students

1. Scholarships

There are many scholarships offered by the government, universities & private institutions. The more you research and keep yourself updated with this, the more you have of identifying scholarships that you might be able to avail

2. Student Credit Cards

These are quite helpful, especially for the students studying abroad. The minimum age required to get this is 21 years. It is easier to get a student credit card from the bank where you already have an account.

In Conclusion

To sum it up, getting a personal loan for students may not be an option for everyone. While those who are earning can get a personal loan, full-time students with no work experience or minors cannot. However, there are other alternatives such as education loans, scholarships, and student credit cards that can help you cover your expenses. Make sure you explore all your options and choose the one that best suits your needs. Good luck!