How to Get a Personal Loan for Paying Coaching Fees in India

An education loan is perhaps one that most young adults are familiar with. A good education is essential for equipping students with the skills and knowledge they need for crafting a successful career. Keeping this in mind, the ability to finance an education in the field of your interest becomes extremely important. 

However, education loans sometimes aren’t sufficient for covering the complete cost of online courses or coaching fees of institutions. At such times, students might favour a personal loan. Though the purpose might be the same, some key differences can make personal loans more preferable for students than education loans.

Why take a personal loan?

Education loans are a good way for students to finance their education, but these loans require students to have a certain amount saved up as an initial payment before the loan can be disbursed. This can range from 10% to 15%, depending on the course and institution. This could be a difficult ask for some students.

Financing online courses and certificate courses offered by institutions that are not recognized as deemed universities through education loans could also be a problem.

A personal loan can also help you with non-course expenses such as your living expenses, house rent, machine costs, or other related expenses. An education loan will not necessarily cover these, and thus a personal loan is better suited for these purposes.

Another advantage of a personal loan is that it does not require any asset to be put down as collateral. As long as you have a proven ability to repay the loan and you meet the eligibility criteria, you can get a personal loan and use it as you see fit. You can easily check the loan amount you are eligible for and the monthly payment structure using a personal loan EMI calculator.

Documentation for a personal loan

The below-mentioned documentation will be required when you apply for a personal loan:

• Loan application

Each bank or financial institution will have its own loan application. Make sure to duly fill the application with all the required details before submitting it. Make sure you have complete clarity about all the sections before proceeding to fill the application.

• Identity proof

A proof of identity can be your Aadhar card, driver’s license, passport, or any other government-issued photo identification.

• Address proof
  A rental agreement, utility bill, or any other government-attested identification that mentions your place of residence can be used as proof of address.

• Employer and income verification
  Depending on your mode of employment, your income verification documents will vary. For those traditionally employed by a company, tax returns, pay slips, bank statements, and the company’s contact information can be used for this purpose. If you are self-employed, you will not need to share the employer’s contact details but instead share your income tax returns, bank statements, and Form 1099.

Get the education you deserve

There are times when an education loan may not be a good fit for you when arranging for online course fees or coaching fees. You don’t have to let go of a good educational opportunity simply because an education loan doesn’t fit all your requirements. Instead, you can opt for a personal loan. Once you manage to secure favourable personal loan interest rates, the process of repayment will also become much easier for you.

A good education can open many doors of opportunity throughout your career, and at such times, personal loans can help you take the next step towards securing a better future for yourself.