This is how education loan helped this 23-year old look after her ailing and when her parents lost their jobs


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When Preeti’s father lost his job at the welding shop, it was a double blow in the same year. Her mother was diagnosed with severe joint arthritis, which had made her movements difficult. Preeti was 23 years of age then, with no clue how to manage the household. Her younger brother Vinay was all of 14 years. But Preeti was determined. Good in her studies, she started taking tuitions. But tuition money cannot run a family where no one is earning a full-time salary. Her father was dejected and disappointed and soon slipped into depression. This is when Preeti used the education loan route to revive her family’s fortunes.

Bold decision

It is not easy to take the bull by the horns. But, Preeti understood she had to do something. She was unable to get a full-time job with a good salary as she lacked unique skills. That’s when a classmate told her about vocational courses. What is more, vocational courses are funded by education loan financing. Just like a personal loan, there is no requirement of any collateral for an education loan up to a certain limit. In some cases, the borrower’s parents may be asked to become a co-borrower and submit some documents if necessary.

If a candidate secured admission in a course run or supported by central or state ministry or conducted by an authorized organization, then lenders have no problem. They will happily disburse the education loan. This is what changed Preeti’s life. Instead of taking some other debt as a personal loan to start a home food delivery business, Preeti wanted to learn differentiating skills. So, she chose a 2-year vocational course. The course would give her a diploma issued by a government recognized institution.

All expensed paid

Given Preeti’s family and their financial condition, every single associated cost with education was a burden. At a point, Preeti felt like giving up. But her lending institution, Tata Capital told her that all types of expenses are considered for education loan. This means tuition fee, course fee, examination fee, library use fee, laboratory charge and even caution deposit would be covered by the education loan.

Purchase of books, equipment and instruments were also covered since the education loan amount was not breached. Preeti was also told that as long as any reasonable expenditure is found necessary for completion of the vocational course, she could get it. Like in case of a personal loan, the lending institution really does not ask too many questions in education loan as well.

Starts repaying

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After 24 months, Preeti finally completed her course. Within 2 weeks, she got a job in her city. She was elated. Though the lending institution had given a loan moratorium of a few months, Preeti decided to repay from the 1st month itself. Her father is now okay and loves the fact that he has to ask pocket money from Preeti as roles have reversed. Preeti’s mother is being treated a nearby hospital and the doctors say she is improving. She requires intensive care and medicines, but Preeti’s income can support it. Her younger brother is preparing for class-10 exam and guess who is his role model? Not some cricketer or film-star. His role model is his elder sister.

Preeti’s survival spirit and her fight against all odds are really commendable. Equally, her choice of a good course that can fetch a job quickly was important. When you ask her, Preeti talks about the education loan changing her life. She says she realized the true value of money. She learned how to deal with financial institutions, tackle difficult and stressful situations, and still remain focused.

A new life

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Educational courses help students take a chance to get a better life. Recognized vocational courses train students like Preeti for employment in different fields. These courses make students skilled. Both academic and non-academic courses help students lift themselves and family out of poverty.

Many students do not know that a right education loan at the right time can change the game totally. Education prepares them for a particular trade and occupation. Vocational courses that help you become an electrical technician or a library assistant can help you. Not everybody can get admission in MBA and engineering. Many students do not attempt due to lack of funds. However, education loan from a top-lender can help you change your situation, as Preeti showed. She pays an equated monthly instalment from her income. Yes, the education loan EMI is no different than a personal loan EMI or a home loan EMI. It helps the borrower repay debt along with interest in a time-bound manner and boost their credit score too.

Preeti has already started receiving calls from financial institutions offering her loans. They want to give credit to her since they feel she is a credit-worthy and disciplined individual. As Preeti and she gives ‘credit’ to the timely education loan!