Why You Should Opt For An NBFC For Education Loans

With the demand for high-quality education increasing, the number of students applying for study loans has also risen. Students of this generation do not want to compromise on the quality of education they receive. So, in order to meet the often high fees that esteemed institutes charge, many people opt for education loans. A borrower has two options to choose from for their loan: a bank or an NBFC (Non-Banking Financial Company). In this article, we take a look at why the latter option, NBFCs, can be a better choice for you when applying for education loans.

  1. NBFCs have a student-specific approach 

NBFCs often tend to have a student-specific approach when it comes to education loans. Many NBFCs often interact with the student before and during the loan application process to get a more comprehensive understanding of the student’s needs, their future plans and prospects, and so on. This kind of guidance and interaction can be truly beneficial as more often than not, education loans are the first kind of loans that an individual borrows. Therefore, students may require a bit of assistance in going through the loan process. 

With traditional lenders, a student often has to compromise on the kind of support they receive when it comes to guidance. 

  • NBFCs have a quicker loan-sanctioning time 

The time taken to process your education loan application is very important. If there is any sort of delay in your admission process due to a late loan sanction or something similar, the consequences could be huge. Keeping this in mind, many NBFCs have quick sanctioning time. Unsecured education loans may take around 4-6 working days and secured education loans may take around 8-10 working days to get sanctioned when you opt for an NBFC. Additionally, NBFCs also require lesser amounts of paperwork. 

  • NBFCs often have no maximum amount limit for unsecured loans

Conventional lenders often have a maximum amount limit when it comes to collateral-free education loans. However, if you go with an NBFC, there is a strong possibility that you may not have to face any kind of amount limit even if you are opting for an unsecured loan. This allows you to retain your assets and savings regardless of the amount you are borrowing. 

  • NBFCs cover a wide variety of destinations and courses 

One disadvantage of opting for a traditional lender is that they may not cover certain countries or courses. They usually tend to have only the popular destinations and courses on their list. On the other hand, if you go with an NBFC, you can receive funding for your studies in multiple destinations. Plus, NBFCs also allow funding for unconventional courses and degrees which may usually not be covered by traditional lenders. 

It is important to note that different lenders have different terms and conditions for their education loans. These terms and conditions may differ even among NBFCs. The information provided here is for educational purposes only. Do have a chat with your educational loan provider and get your questions cleared before going ahead with any financial decision. We hope this blog has been helpful to you. Thank you.