What are Student Loans?
The loan products that are designed to provide funds for the educational needs of the students are student loans. With the emergence of next generation online lending, they are now available online. Being an online/direct lender, we at TargetLoans provide financial assistance for any to every need. Our aim is to ease the stress of money mess of the future makers. With affordable rates and flexible policies, we bring the assurance of timely availability of funds. We never compromise on the well-being of our customers and above all the constraints, try to create a friendly atmosphere for the fund seekers.
How do student loans work?
Student loans are precisely for expenses related to your studies. No personal need can be fulfilled with them. Unlike personal loans, student loans are purpose specific. You need to mention the exact reason you are borrowing the funds for. Varied factors like your family’s income and your own (if any) decides the loan amount.
- There are two types of loans
- Maintenance loans – To cover living costs for instance – food, accommodation etc.
- Loans for educational purposes – To pay examination fee, tuition fee, for buying study material etc.
We Provide Both
How to apply for student loans?
With us, you have a very simplified version of application procedure. For sure, few minutes are not huge to take out from your busy yet exciting routine. Let us start then –
Better to go systematically
- Step 1 – Apply for the loan. At this stage, you need to just fill and submit the application form with some of the basic personal and financial details.
- Step 2 – You get approval decision that comes in just a few minutes after the submission of loan request.
- Step 3 – Once approved (which usually happens) money reaches to your bank account through the online transaction.
Our aim is to keep you equipped with adequate finances that can help make your future better. Anything that causes delay is never a part of our procedures.
Why to Pay Student Loan on Installments?
While sending applications for Student loans in UK, the students have to give their consent to repay the loan, either federal or private, with a particular interest rate and the term. Moreover, they tend to apply for such loans after a few months of their graduation.
The question often comes that, why it becomes necessary for the students to opt for the monthly installments? Well, to answer this question, here we have lined up a few reasons:
Limited Earning Sources: The focus of the students is on their undergraduate or graduate study. Financial obstacles often disturb them and thus, they have to apply for loans. Simultaneously, they have to show their repayment capacity to the lender for which they can show their income from part time job. In such scenario, managing the repayments from their limited monthly income would become easier.
Limited Credit Scores: Credit scores are primary for sanctioning a loan or not. Several students may be good in their academics but they are not good to their credit score. Shopping for loans becomes tough for them especially with limited credit scores. However, the direct lender may help them if they make sure that the student loans repayment will be as per the schedule and it becomes easy via installment loans.
Limited Time Available: Students do not have much time to indulge in the loan process. They want to achieve big in their career and for that, they have to spend maximum time on their study. The loan process is online and they can complete entire steps by sitting at the hostel room. Therefore, the student loans on installments can never be a wrong decision to take.
When do student loans get written off?
After the recent government recommendations on the student loans, there may be some changes in the picture. However, this is a ‘wait and watch’ situation but until the current trend is sure to carry on. After 30 years, a student loan gets written off.
What is the interest rate on student loans?
All our loan deals are customised and we give priority to the financial circumstances of the fund seeker. For that, several factors come under consideration.
- Credit rating
- Repayment capacity
- Latest bank statement
- Job stability (in case of an employed applicant)
With the very basic above things, your journey of borrowing funds remains smooth.
How to Prove Repay Capacity?
The only thing we expect from your side is the committed capacity to pay back the loan. For that, you can show us certain aspects.
- Current financial behaviour – If you are paying your bills and expenses on time, we are more than happy to offer you a loan deal.
- Income of family – Many students work to earn some money but most of the time family is the major back up. We want to know you on that part, as it can help you qualify for the desired loan amount.
- Job/salary proof (if employed) – Part-time, full-time, freelancer we are OK with anything. Just show us the income and we can carry on for the next formality of approval decision.
- Income expense ratio – This is the comparison between how much you get as the income and how much you spend. With less expenses in comparison to the income, it is easy to get accepted.
These are not difficult things perhaps to present from your side. Once these come to us, only a few minutes consume to tell that your loan is approved.
What happens if you don’t pay student loans?
Your credit score can go poor and then worst in case of failure to pay off the loan. Our concern is to prevent that situation beforehand, as we want to work on a second chance. The direct lending is liberal on the student loans in the UK and we too have same approach. In case you fail to pay off the loan, we contact you to sit together and work on a more affordable repayment schedule.
Just like any Student Loans Company we use these ways to know your earnings
Our aim is to keep maximum ways open to approve your loan and for that, we need to check your earnings. Certain procedures become necessary for that.
- Credit score – Credit rating gives the idea of your financial situation in the very first glance. Good score means reliability on the part of repay capacity, bad rating means you need a different suitable deal.
- Credit file obtained from credit reference agencies – Nothing remains hidden here. The credit reference agencies have all the past and present information about your finances. We access the report to know better about your money matters.
- Employment history and job stability of those in job– Students too do job. Your job in previous years , income growth, the duration you stay in one job etc.. are informative factors. They help us make an overall picture of you as a loan applicant.
Did you know? Bad credit score is acceptable
Students have many responsibilities and multiple expenses to manage. This makes them pay sundry obligations and that sometimes causes money mess. Result is, pending bills and ruined credit score performance.
You can relate to this situation and we believe that it was not your fault. Circumstances occur and people fall in bad credit situation. To help students in a wrestle with such tough situations, we provide funds despite their poor credit. Just prove financial capacity and the approval decision is sure to come in your favour.
Excellent – 961 – 999
Good – 881 – 960
Fair – 721 – 880
Poor – 561 – 720
WE ACCPET ALL
Obligations? Obviously not if the loan is for short-term
Tenure and loan amount are two important factors that decide the need of obligations. Small student loans (that we provide) are usually the short-term backings during tough financial times. There is no need to provide guarantor or collateral. The same rule of affordability against the loan amount is the only law for us.
Keep working on your dreams. For financial worries TargetLoans is always there with an appropriate deal.
Can I get a payday loan as I’m a student?
Yes, you can get a payday loan by filling out a short online application form. Yes, the concern of your repayment is right but you can return the amount by working as part time, freelancer or any virtual job.
How much can students borrow?
A student can borrow amount starting from the range of 1000 pounds to the extent depending on your repayment capacity. If you think that your earning allows you to get extra funds, then you can stand a chance to quote for more than your expectation.
How quickly can I get a short term student loan?
The direct lenders provide loans for student under the category of short term assistance. To deal with the process quickly, you have to fill up a short application form. If your income is sufficient to return the amount, then you can get an instant disbursal within a good day.
Can I get an Instant loan if I’m a student?
Yes, the direct lenders consider giving loan to a student, only when student is working or have a reliable source to return the amount on time. For example, a part time works savings or a guardian to handle the responsibility of repayment.
How can I get a student loan with a bad credit score?
A student can get the funding despite having the constraint of a bad credit score. The lender performs the feature of no credit check which escapes the mark of foot print on the credit score. Therefore, on the basis of it you can funds within short period of time.