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February 14, 2026The cost of education is rising in India. Pursuing higher education is getting costlier. No doubt there are education loans by banks and NBFCS that can help you. But these loans have strict criteria and, at times, also ask for collateral. Hence, this makes it challenging for students to opt for these loans.
Due to these personal loans for students are getting very popular to access funds for education. In this blog, we will explore what personal loans for students mean, what options are available, eligibility criteria and more.
What are Personal Loans for Students?
A personal loan is an unsecured loan which doesn’t require any collateral. Majority of banks, NBFCs and fintech lenders offer personal loans. Students can use this loan to cover major study costs like tuition fees, study materials, a laptop, travel expenses, etc. Personal loans are quite flexible as compared to education loans, which are specifically tailored for tuition and related costs. Personal loan comes with higher interest rates and has shorter tenures.
Personal Loan Options for Students in India
There are two major personal loan options for students in India. Let’s understand each of them: –
Bank Personal Loans with Student Use
The majority of banks in India offer standard personal loans. Students or their parents can apply for these loans to deal with education-related expenses. These personal loans are not specifically designed for students, but students can use them to manage education costs. Eligibility of these loans depends on credit history, income and other factors.
Student Focused Digital and Fintech Loans
Many digital lenders and NBFCs have started offering student-friendly personal loans. These are quite easy to access. These are very useful in case you want a quick, small lump sum loan for short-term needs.
Eligibility Criteria for Personal Loan for Students
Education loans emphasise enrolment and course details while sanctioning the loan. Whereas personal loans focus on creditworthiness and repayment ability. Here are the eligibility criteria for Personal loans for students: –
Age
The majority of lenders expect the minimum age to be 18 years. Some expect the minimum age to be 21 years.
Income
Students generally apply with a co-applicant who has a stable income. This can be a parent or a guardian.
Credit Score
A minimum credit score of 650 is expected. A higher credit score improves the chances of faster approval.
Bank Account
A valid bank account is a must. The loan amount will be credited to this account.
Documents Required for Personal Loan for Students
Before you proceed to apply for a personal loan, you will need some necessary documents. Here is the list of documents required for a personal Loan for students: –
For identity verification, you can present a PAN card, a passport, a driving license or a voter ID card
For residential proof, you can submit a utility bill (within the past 3 months), a passport or an Aadhar card.
You need to present the income proof. This can be the last 6 months’ salary slip or employment proof.
Signed Loan agreement along with the Standing Instruction Request.
Passport-sized photographs.
Benefits of Personal Loans for Students
Here are the key benefits of a personal loan, which make it ideal for students: –
Flexible Repayment option
Personal loans for students have flexible repayment options tailored to students’ unique situations. This helps students to manage the EMI without any financial burden.
Comprehensive Expense Coverage
Personal loans for students in India cover tuition fees, books, accommodation, travel and other educational costs.
No Collateral Needed
This loan doesn’t ask for any collateral. Hence, this is very useful for students who don’t have any assets.
Fast and Quick Approval
These loans are now processed online. Hence, they are processed very fast and approved within a few hours.
How to Choose the Right Loan Option for a Personal Loan for Students?
Compare Lenders
Many banks, NBFCS and digital lenders offer personal loans for students. Compare the interest rates and processing fees they are offering.
Check Your Credit Score
The lender will check your credit score to decide your loan approval. Hence, you shall know your credit score in advance. If it’s low, try to improve it. Because a better score can help you get a better loan deal.
Make Use of the EMI Calculator
Use the online EMI calculator to plan the repayment. This will help you to decide how much EMI to keep.
How to Apply for a Personal Loan for Students?
The majority of lenders now have an online process for personal loans. Here are the steps that you need to follow: –
Go to the website or app of the lender.
There you will find the “Apply Now” button. Click on that.
Now you will need to fill out the form with your basic details and submit it.
You will also have to upload the documents required.
Lender will verify your application, and if approved, the funds will be disbursed to your bank account.
Conclusion
Personal loans for students in India have become a practical alternative for education expenses, especially when traditional education loans fall short due to strict norms. As we have discussed in this blog, these personal loans are quite flexible and give quick access to funds. Students can use it to cover various expenses like buying laptops, accommodation, tuition fees, etc.
Before opting for a instant personal loan, do some research a bit about different offers. This will help you get a better deal. You can easily apply for this loan from the app or website of the lender. It will be approved in a few hours.
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