Banks and financial institutions generally sanction loans to the borrowers having repayment capacity. So, for students belonging to poor families having lower income, it’s difficult to get an education loan, unless the students themselves show remarkable performance to get admission into top institutions having good placement opportunities.
“In today’s modern education ecosystem, students must find out the basic requirements for getting admission into a program of their choice. Once that stage is accomplished, they need to understand the various steps involved in the admission process, including how to get adequate funds,” said Prashant A Bhonsle, Founder, Kuhoo Fintech.
However, it’s easier to get small ticket loans from fintech companies, compared to getting one from a scheduled commercial bank.
“Edu Fintech companies like Kuhoo facilitate loans for education through various customised products and help students in achieving their higher education goals. They provide student loans without massive collateral. Such Fintech companies are underwriting loan applications based on the course one will pursue, market trends, potential remunerations and consequent earning potential of the student/loan applicant and not based on their parent’s income,” said Bhonsle.
To improve the chance of loan approval from fintech also, the students may have to take proactive actions.
Bhonsle suggests some tips to amplify the chances of getting a student loan application approved:
- Students must work hard on their academic scores and stay in the top 5 per cent to 10 per cent in their respective classes. It demonstrates their command over the subject and validates the discipline and dedication required to maintain the consistency of these scores.
- Nowadays, more and more employers welcome job-ready degree holders with prior work experience. It is advisable to seek work or project-based opportunities while pursuing a degree. Since all kinds of internships or part-time work experiences bolster employability, it can also help one get a better deal on student loans.
- Never underestimate the power of research and preparation. Invest time in researching and applying for different scholarships available in your domain. Gaining a scholarship is an excellent reflection of the holistic development of a student and it also showcases their perseverance towards their goals. Having a scholarship to one’s credit would help raise their chances of getting a student loan approved.
- Admission to a reputed college/ university or program boosts one’s chance of getting a loan for tuition fees and other expenses.
- Taking up some project work or any other part-time work opportunity supplements income and is another excellent way to prove dedication, reliability and domain expertise. This adds a lot of value to an applicant’s profile and aids in procuring a student loan.