Over the years, India has witnessed an incredible development in the education sector, bringing ample opportunities for students. However, the burgeoning cost of higher education has made it challenging for individuals to enrol in their desired courses at preferred institutions. Thus, the market brings various financing options like education loans and student credit card to assist students in their educational pursuit.
What are the quick credit options available for students?
If you are a student looking to finance your higher education in India, the following options can instantly provide you with adequate credit.
- Education loans:
As the name suggests, these loans are designed to defray the expenses of a student’s education. Borrowers can utilise the fund to cover tuition fees, admission charges, etc.
- Personal loans:
An unsecured personal loan is a more flexible credit option as it comes with no end-use restriction. Besides the various educational expenses, these loans can cover a student’s travel expenditures, initial accommodation costs, food, medical emergencies, and other associated expenses.
- Student credit cards:
Loans are a one-time funding option, but credit cards are an excellent choice to cover the recurring costs. These payment cards allow users to borrow any amount within a pre-set credit limit and repay the same every month.
Perfect for small to high credit requirements, a student credit card is customised to match your specific needs during higher education. You can avail a student credit by satisfying simple eligibility criteria and going through minimal documentation. Here, you need not submit any proof of income.
The Credit card of this type usually feature a limit ranging up to Rs.15000. You can use your credit card in more than 10 ways, including purchasing books, registering for online courses, paying for food and transportation, covering medical expenses, etc.
Some of its benefits include:
- As student credit cards are for users with zero or limited credit exposure, these allow the young cardholders to build their credit histories and CIBIL scores steadily. Hence, you become easily eligible for competitive terms on loans and credit cards in the future. Here, do read how to use a credit card to improve your CIBIL score.
- They also learn to manage their expenditures responsibly and develop a healthy financial discipline at an early age.
- The best student credit card comes with benefits like discounts, cashback, and gift vouchers, allowing users to maximise their savings.
The process of how to apply for a credit card online is simple. If you are a Bihar resident, you can avail the Student Credit Card launched by the state government in 2016. This scheme is for students who have passed 12th standards and require funding for higher education. Following are some of its perks:
- Available for students pursuing technical, polytechnic, and general courses.
- One can use it for purposes such as buying laptops, paying fees, purchasing books and study materials, etc.
- Transgender, differently-abled, and girl students are entitled to a lower interest rate of 1%.
- The card offers up to Rs.4 lakh as an education loan.
- Loan repayment of Bihar student credit card begins after the student lands a job upon completing his/her academic course.
- Personal credit cards:
Alternatively, suppose you aren’t eligible for a student card or need a higher credit limit. In that case, you can ask an adult earning member in your family to avail a personal credit card. These come equipped with better features and a higher credit limit based on the applicant’s monthly income.
Credit cards like the Bajaj Finserv RBL Bank SuperCard bring industry-first features like interest-free repayment on ATM cash withdrawals, emergency personal loans against the unutilised credit limit at 0% interest rate, and easy EMI repayments.
Bajaj Finserv also brings customised pre-approved offers for their existing customers. Pre-approved offers are designed to make the application process for credits faster and less complicated. You can avail such schemes on a host of financial products like credit cards, personal loans, business loans, and more. Check your pre-approved offers by providing a few details only.
These features, alongside digitalisation and minimum eligibility criteria, have made acquiring funds considerably easier. Such measures have lowered the dropout rate occurring due to lack of finances and made higher education more accessible. Moreover, financing options like a student credit card allow students to bridge the financial gap and pursue their dream career effortlessly.