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How should I plan my loan for upskilling?

How will taking an upskilling loan benefit me?

The growing awareness of the benefits of upskilling has helped people to understand that upskilling is the need of the hour to enjoy better pay, get the much-desired promotion or secure your job during a recession. However, upskilling courses constitute a significant expense for a professional apart from his liabilities. Thus, the vital question then someone wanting to upskill is how to fund their upskilling needs.

How to fund my upskilling course?

It’s simple, apply for an upskilling loan! A loan for upskilling or higher education is now readily available through banks and NBFCs. For example, Eduvanz, an NBFC, offers students upskilling loans at zero-cost EMIs, with minimum documentation and fast disbursals. 

What are the benefits of an upskilling loan by Eduvanz?  

  • No-cost EMI or low-interest rate
  • Buy now, pay later scheme 
  • Loans cover diverse education-related expenses 
  • Improves your CIBIL score 
  • No collateral required

Please read the blog further to know easy tips to help you get your first upskilling loan. 

4 Tips to Help You Plan Your Loan for Upskilling

Understand your loan requirement

Determine the exact amount of loan you will require. Check your savings and future financial needs to know the percentage of the course fee or the total amount you require. Fixing the amount you need to borrow before approaching the financial institution will lessen the loan burden and help quickly repay education loans. 

Calculate your EMIs based on your budget

Ensure you have diligently done your monthly budgeting based on your expenditure, savings, and emergency fund. Now calculate the amount you can contribute to your EMI for loan repayment. Online EMI calculators available are a great tool in helping calculate the amount accurately. Finally, based on the EMI amount, estimate your loan tenure.

Research the banks/ financial institutes you want to take a loan from

Research the loan options from the bank or an NBFC that fits your loan requirements. Read through the terms and conditions on each lender’s websites or brochures to check whether you are eligible. Compare the interest rates of all the financial institutes and banks by submitting multiple applications to different lenders. 

Gather all documents to be submitted

Enquire about the various documents to be submitted for a hassle-free disbursal of the loan amount. Here’s a general checklist that you can refer to before applying for an upskilling loan: 

  • KYC documents (Aadhar, PAN, Voter ID, etc.) 
  • Proof of address 
  • Employment status 
  • Course details 
  • Salary slips  
  • Business turnover proof 
  • Bank statement 
  • IT returns 

Upskilling loans are a popular choice among students and working professionals to reach their true career potential. When done right, loans for education and upskilling can help you obtain financial independence and manage your money better. 

Frequently Asked Question

What is the difference between student loans and education loans? 

Often mistaken for another, student loans and education loans are, in fact, quite different. The loan repayment for a student loan begins either 12 months after completion of the course or six months after securing a job. On the other hand, education loans are unsecured loans that cover expenses, including tuition fees, books, lab equipment fees, exam fees, etc.

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