Advice & Tips on Personal Loan for Students & Professionals


Imagine these following scenarios. It’s very likely one of the two apply to you:

First, you are a professional working for the past few years, and have decided that it is time for you to head back to school to upgrade your skill-set.  It is the next big step in your career, and to make it really count, you need to get a distance degree from a premier university abroad. The expenses, however, are still formidable and your savings won’t suffice to pay for tuition.

Second, you are a working professional who has been working for a while, and are ready to move up in the social ladder by purchasing your first home. Or an unplanned emergency has burdened your savings. Or you are looking to consolidate your debt.

In both these cases, the solution is as simple as it is effective. Taking personal loans is an effective means for both students and professionals to cope with expenses. Finding affordable interest rates and flexible policies further ease out the process of repaying the loan. Personal Loan is a lucrative option for students and professionals looking to get personal loans. With competitive interest rates, flexible repayment tenures ranging from 12 to 60 months, loan amounts as high Rs. 25 lakhs and more such benefits, the personal loans on can prove very beneficial to both students and professionals.

It is beneficial to get personal loans due to the following reasons:

  1. Relatively quicker approval time, compared to other loans.
  2. Requires minimal documentation and is based on the individual’s income and credit scores.
  3. Don’t require providing the bank with a collateral against the loan.
  4. Available at affordable interest rates, making it possible to pay back without incurring substantial financial burden.

Thus, personal loans have a significant edge as compared to education loans. Now the next most important thing to understand is how to get a personal loan. What are the things you must keep in mind? Depending on whether you are a student, or a professional, here is what you have to take note of:

Personal Loans for Students

  • Don’t Default: Defaulting on your repayments can reflect negatively on your credit score. This can thereby impact your ability to take out further loans, since your credit repayment is given considerable weight when determining your credit score.
  • Pay as you Earn: Some banks are known to give an option of income-linked payment. If this option is available, you should certainly take it, since it can help get through the initial period, when the income levels aren’t particularly high, therefore avoiding debt burden.
  • Take a loan with a Flexible Tenure: Opting for a loan with a longer tenure can be less of a burden on your finances. Since your career is just taking off, shorter tenures would invariably force you to shell out more of your income right at the start. Thus, PPT for convenient EMIs with a longer repayment tenure.

Personal Loans for Professionals:

  • Manage your Accounting: Before availing a personal loan, make sure you are aware of your business’ finances. The potential for the business to succeed is also important to ascertain. This will help determine how much of a loan is actually required, and what is the likelihood of being able to repay it successfully without defaulting.
  • Avoid Hesitation: If your business is at a stage that needs capital infusion to grow, don’t wait too long to mull over whether you need a loan or not. If this period of hesitation gives way to a bump in the business, or even a steady low, you will not only be unable to avail the loan anymore (since banks will stay away from a business that is not doing well), but also be unable to revive your business from a situation that was avoidable. Therefore, determine when you require the loan, and make sure you take it in time.
  • Prove you can Repay: Banks need to know that you are capable of repaying a loan. Make sure you provide ample evidence of the same, in order to avail the loan with minimal difficulty. The best way to show evidence of your ability to repay the loan is through collateral. Determining a strategy for repayment not only assures the lender, but also gives you a fair idea of how you will go about repaying the loan. Building a relationship with the lender also allows you to avail another loan at a later date, if need be.
  • Grow your Business: Refinancing your business leaves a negative impression overall. In order to avoid having to undergo loan debts more than once, make sure you make the loan you initially take, count. Make the purchases and hires that you need to in order to make sure you thrive in your business, and your repayment schedule stays on track.
  1. Eligibility:

Three are three basic criteria one must match to avail personal loan. They are as follows:

  • You are an Indian Citizen.
  • You are drawing a salary.
  • You are aged between 23-58 years.

When applying for a personal loan, the bank will look at the applicant’s CIBIL score (a credit score that assesses the creditworthiness of an individual). Your score can range from 300-900. An ideal score is 750 and above, while a score between 500-699 is considered average. Additionally, they will require your KYC documents, employee card (for salaried individuals), salary slip from the previous two months, and previous 3 months of salaried bank account statements.

Using an eligibility calculator is a simple means of determining first-hand whether one is applicable for the loan. Bajaj Finserv Personal Loan, offered on Finserv MARKETS, provides a simple personal loan eligibility calculator that can help you determine what kind of amount and repayment tenure is suitable for you.

  1. Documents

 Personal loans are an attractive option due to the relative lack of documentation that is required. Apart from the documents required to measure eligibility (above), the documents the bank does need are as follows:

  • Proof of identity: PAN card/ Aadhar Card/ Passport/Voter ID/Driving License/Ration Card
  • Proof of residence: Electricity bill/gas bill/leave and license agreement
  • Passport-size photographs (2 or 3)

With this knowledge handy, you are now ready to avail your own personal loan. Whether it is for your further education, or to meet some expenses, you now know exactly how to go about choosing the loan that is just right for you!

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