8 Key Benefits Of Online Student Loan Platforms
New age Edufintech companies like Kuhoo are working tirelessly towards making the entire student loan application process tailored to the changing times and ensuing needs of Indian Students. There has been a remarkable evolution in the past decade in the overall ecosystem as far as Student Loans are concerned.
Some important benefits of the online student loan platforms are listed here:
- Quick & Online Processing
Every student and their parents have 2 fundamental questions that needs to be answered immediately when they are planning the higher education expenses:
- Will I get a student loan?
- How much loan will I be eligible for?
Most banks and NBFCs take a few days to weeks to answer these questions and that makes it difficult for students and families to do right financial planning. The online student loan platforms offer a quick eligibility check in just 4 minutes which allows students to look for other options in case they are not eligible or getting a lesser than required amount of loan. Also, students can upload all the required documents sitting in their colleges or home through these online portals. It saves much time as they (& parents) do not have to take leave from college or work to visit branches multiple times.
- Real time status of your application
Online student loan platform give real time status of the loan application and keeps the students and parents informed about the process and time required.
- Flexible repayment options
Unlike banks and NBFCs, online platforms not only provide flexibility in repayment but also give digital payment options for students to repay their interest and EMIs. In fact, the innovative products of online portals allow partial repayment of simple interest for families of students who cannot afford to service the simple interest during their course of study.
- No requirement of parents as co-applicants for some products
Online student loan providers like Kuhoo have introduced a product that does not require parents to be the co-borrower in the student loan. These domain experts give importance to the student’s potential instead of evaluating the parents’ income for approving student loans.
- Better after-disbursement services
There are many service requirements after the loan is approved and disbursed. These include Pre EMI and EMI modification during and post the course, contact address changes, interest certificate, part pre-payment and early closure of loan etc. A lot of these services can be done online through these new age platforms and students and their parents can save time.
- Up to 100% funding
While banks usually ask for margin money before they disburse the loan, some of these online portals are the experts in providing student loans and they provide up to 100% costs of education that includes tuition fees, along with living expenses such as hostel, food, travel, books, tutorials etc.
- No requirement of collateral or security
For higher amounts of student loans, banks generally require the family to give property as security/collateral against the loan. However, the new online players can extend loans up to ₹50 or 60 lakhs without any security from the students and their families.
- Good deals on other products like Insurance and Forex
Some of the online players collaborate with other fintechs in insurance and forex companies and give best deals on these bundled products
In many cases when parents do not have adequate savings and assets to support the cost of higher education, students have to drop their dreams and they continue their work life without reaching their highest potential. Lack of financial support is the biggest impediment in the path of capable and talented students towards greater success and prosperity.
Research indicates that students who opt for student loans do better overall in their education and career, as the very task of taking responsibility for funding their education instils in them a purpose and a goal driven approach to stay disciplined and on course and not get distracted.
Emergence of the online student loan platforms is the beginning of new possibilities for hundreds and thousands of Indian Students.
These new age fintech companies are focusing on developing products and services keeping in mind the needs of students. The online loan platforms are technology driven in their approach and operations.