5 Best Tips for Students to Acquire a Personal Loan

A personal loan is highly beneficial for students. The leading banks offer lower interest rates starting at just 10.49%. The money can be used for multiple purposes like a higher course, an international degree, study materials or for paying off education loan debts. A portion of the loan can fund your living expenses in the event that you need to move out of the home. It can also be used for multiple other needs as a wedding loan or finances to help your family. 

We usually plan such expenses way ahead of time. But having a loan handy can help fill the shortages if any. However, you need to get the application approved to enjoy the perks and benefits. Take a look at how to acquire the loan without hassle. 

  1. Minimum Income 

Students have to show proof of a steady income. This is required for banks to ensure that you are capable of repaying the loan on time. Try to pick a side hustle besides your studies. It can be a part-time job, selling handmade goods or teaching online. It will give an employment profile and boost the chances of getting the loan approved. Do check with your bank to figure out the monthly minimum income required for personal loans for students

  1. Credit Score 

The loan is disbursed at the bank’s discretion based on your credit profile. So, you must strive for an ideal score which is usually 750 and above. The higher the number, the better is your chance of acquiring the loan. Use these tips to build and boost your credit performance. 

  • Pay off your credit card bills on time
  • Be a co-user of your parents’ account
  • Keep checking for report errors
  • Try not to reach the upper limit of your credit card
  • Avoid taking multiple loans

Following these consistently can help you reach a healthy score. Work with a customer-first bank. The experts will reduce hurdles, if any, and process loans without delays. 

  1. Meet the Eligibility 

Easy personal loans do not come with too many eligibility criteria. Check the qualifications required for a personal loan for salaried and self-employed individuals. Talk to the customer care executive to figure out which all boxes you need to tick off. For example, the minimum age for salaried and self-employed classes must be 23 years and 25 years respectively. 

  1. Estimate the Overall Cost 

Whether you wish to use the funds as a wedding loan or others, have a rough estimate of the total costs. You can now understand how much you need. It will also keep you from applying for more money than required. In fact, wanting more than your ability to afford can get the loan request rejected. Keep the processing fees in mind as well. 

  1. Choose the Right Tenure

Students and professionals do not have the same earnings. Therefore, it is a good idea to pick a longer tenure. You can pay pocket-friendly EMIs without compromising on your lifestyle. It will ensure better cash flow and keep the monthly charges from going up. The bank is also more likely to approve such a loan due to its high repayment ability. 

Get in touch with the customer support portal if you are wondering how to apply for a personal loan. Further, put these tips into action to boost the approval chances.