The borrower repays, so a personal loan should sit with a salaried parent or guardian whose income can carry the equated monthly instalment (EMI). A student who has left a job to study abroad has no salary to repay from in the first months.
Worked example: Rajesh in Vadodara
Rajesh is 50 and works as a salaried refinery operations manager in Vadodara, on Rs. 1,40,000 a month; his CIBIL score is 781. His daughter's tuition was covered by a scholarship and an education loan, and the family planned her first year abroad line by line. For the plan to study abroad, he took Rs. 6 lakh towards her living costs at an illustrative 12.5% per annum and set the EMI for 4 years against 5.
EMI = P × R × (1 + R)^N ÷ [(1 + R)^N − 1]. Here P = Rs. 6,00,000, R = 12.5 ÷ 1,200 and N = months.
| Tenure | Monthly EMI (Rs.) | Total interest (Rs.) | EMI as share of salary (%) |
|---|
| 48 months (4 years) | 15,948 | 1,65,504 | 11.4 |
| 60 months (5 years) | 13,499 | 2,09,926 | 9.6 |
Last updated: 23rd October, 2026
Five years instead of 4 lowers the EMI by Rs. 2,449, at a cost of Rs. 44,422 more interest. Processing on Rs. 6 lakh can cost as much as Rs. 24,780. Rajesh chose 48 months, so the loan ends around when his daughter starts working.
What can delay approval: a CIBIL score below 650 or existing EMIs that take up a large share of your income. Names or addresses that do not match across documents, and more than one loan application in the same month, can also slow it down.
Helping your child study abroad? With a Bajaj Finance Personal Loan, you can borrow Rs. 40,000 to Rs. 75 lakh, subject to eligibility. Check your loan offer with your phone number and a one-time password (OTP) → apply online → receive funds within 24 hours* of approval.
