How to Get Loan Midway Through Your Course

Wondering if you can get an education loan in your 3rd year or in any subsequent year of your education? The answer is yes, and this blog is your guide to understanding how. Many students realize they need extra financial support as they progress in their studies. Whether it's for covering tuition fees or other educational expenses, this guide simplifies the process, showing you how to secure the funding you need to continue your education without stress. From evaluating your options to applying and choosing a repayment plan, we've got you covered.

Can You Get an Education Loan Mid-Course?

Yes, it's entirely possible to secure an education loan midway through your academic journey. Many students face the challenge of funding their education after their courses have commenced. Financial institutions are aware of these circumstances and thus provide education loans for students who require financial aid after beginning their studies. Whether due to unexpected financial challenges or the need for additional resources to complete their education, students can find viable options to obtain funding mid-course. In case you decide to take an education loan midway through your course then it will cover your future expenses and in some cases few lenders can also provide you funds for the money already spent.

Understanding Your Lending Options

Education loans are primarily categorized into two types: secured and unsecured.

• Secured education loans: These loans necessitate collateral as security against the loan amount. Acceptable forms of collateral include real estate, fixed deposits, and government bonds. The advantage of secured loans is typically lower interest rates and the possibility of higher loan amounts, making it an attractive option for those who can provide the necessary security.
• Unsecured education loans: These loans do not require collateral and are primarily based on the creditworthiness of the borrower and the co-borrower. This option is particularly suited for students without significant assets but who possess a solid academic record.

The market for these loans is vast, with Public Banks, Private Banks, Non-Banking Financial Companies (NBFCs), and International Lenders all participating. Each lender offers distinct terms, interest rates, and loan amounts, necessitating a thorough evaluation by borrowers to find the best fit for their financial needs. A Simplified overview of them is shown below - 

• Public banks: Offer lower interest rates and longer repayment terms, with eligibility for government subsidies.
• Private banks: Provide faster processing and flexible loan terms, usually at slightly higher interest rates.
• NBFC: More lenient on eligibility criteria, catering to a wider range of educational institutions.
• International lenders: Specialize in loans for students studying abroad, with varied interest rates and loan terms.

Check Your Education Loan Eligibility

Apply Here

Apply Here

Eligibility Criteria for Mid-Course Education Loan

Every lender has its own set of eligibility criteria that you need to fulfill to obtain an education loan. This holds for mid-course education loans as well; there are specific criteria you need to consider. These are:

• No prior loans taken from any lender for the current course.
• A review of your academic performance to date.
• Proof of continued enrollment in the educational program.
• A co-applicant, often a parent or guardian, with a stable income.
• A satisfactory credit history for both the applicant and the co-applicant.
• Admission to a recognized institution and course of study.
• Evidence of the capability to repay the loan, including future income prospects.

Documents Required for Mid-Course Education Loan

The basic documentation that would be required for your loan application is as follows -

Documents required from applicants

• Photo ID proof
• Proof of residence
• Passport-sized photograph
• Proof of admission
• Fee structure document
• Salary slips (if experienced)
• Academic documents

Documents required from co-applicants

• Photo ID proof
• Proof of residence
• Passport-sized photograph
• Income-related documents (wherever required)

Available Options for Mid-Course Education Loan

Different lenders can provide you with an education loan to study abroad even if you need the same mid-course. Some of the lenders with which GyanDhan can help you in securing the education loan are listed below:

Get the Funds you need to Study Abroad

Check Your Loan Eligibility Now!

Check Your Loan Eligibility Now!

Interest rate as of February 2024

Factors to Consider While Choosing a Lender

Key considerations when choosing a lender include

• Competitive interest rates and transparent fee structures.
• Flexible repayment terms to accommodate your financial situation.
• A straightforward loan disbursement process to ensure funds are available when needed.
• Reliable customer service for resolving any issues that arise during the loan term.

Application Process for Mid-Course Education Loan

The application process for getting an education loan mid-course is quite simple. All you have to do is follow the given steps -

1. Initial eligibility check: Begin by using an online tool to evaluate your loan eligibility, which helps in identifying the financial products that match your educational and financial situation. You can check your eligibility with GyanDhan here.
2. Consultation with loan advisor: After the eligibility check, a specialized loan advisor will reach out to discuss your needs, guiding you towards the lenders that best fit your profile and requirements.
3. Document preparation: You'll receive a detailed list of documents required by your chosen lender. This list is customized to simplify the preparation process, offering alternatives when possible to ease document collection.
4. Document submission: Depending on the lender's preference, submit your documents either online or through a direct collection by a relationship officer.
5. Verification process: This phase involves the lender verifying the submitted documents. The duration varies but generally ranges from 7 to 15 days, subject to the lender's policies and the type of loan.
6. Loan approval and agreement: Once your loan is approved, you will be asked to review and sign a loan agreement. You can monitor the status of your loan application in real time through an online dashboard.
7. Loan disbursement: The final step involves the disbursement of the loan amount, which can be directly to your bank account or, in some cases, directly to the educational institution. This step is crucial, especially for those seeking financial aid midway through their course, as it ensures that funds are available when needed.

Repayment Plans and Tips

Choosing an appropriate repayment strategy can significantly ease the financial pressure during and after your studies. Here are some ways in which you can start repaying your education loan during your moratorium period only - 

• Partial simple interest during study: This plan involves making partial interest-only payments while studying, which can substantially lower the overall interest burden on the loan.
• Simple interest payment during study: Paying simple interest during the study period is another effective way to manage loan costs without overwhelming financial strain.
• EMI during study: Starting EMI payments while still in school can significantly decrease the total interest paid over the loan's lifespan, although it requires financial discipline and planning.

Finding financial support midway through your academic journey can seem daunting, but it's entirely achievable. This guide aims to demystify the process, ensuring you have the necessary tools and knowledge at your disposal. For those in their subsequent years of study looking to navigate the complexities of securing an education loan, remember assistance is just a few steps away. Start by checking your eligibility on platforms like GyanDhan, where a tailored approach can help simplify your journey towards securing the financial support you need to continue your education.

Read also:

• Education Loan Details: Eligibility Criteria and Basic Documents Requirement
• Guide on Education Loans with Collateral to Study Abroad in 2024
• Documents Required for Education Loan
• Education Loan for Abroad Studies without Collateral

Frequently Asked Questions