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Personal Loan
How to use the FIRSTmoney on-demand loans feature for school expenses
Key Takeaways
Schools often charge fees in stages throughout the academic year, and also accept payments in stages, allowing you to manage expenses efficiently.
- You can cover all school-related expenses with the help of an instant personal loan.
- The on-demand loans feature is like a small loan that lets you borrow money in smaller chunks, where you pay interest only on the funds you withdraw.
One thing you hear all new parents say is that the cost of education has skyrocketed in the last decade. From sudden hikes in tuition fees to unexpected activity expenses, school-related expenses are becoming increasingly unpredictable. To help you manage these expenses, you can get an instant personal loan with the flexible drawdown feature for school expenses.
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Why school expenses often come in stages
In India, most schools follow a structure in which fees aren’t collected as a one-time payment. Most institutions prefer to levy fees semester‑wise or annually, aligning with their academic cycles. Fees are also levied in stages, for instance:
Supplies: Fees for supplies like books and uniforms are collected at the start of the year. All students need to conform to these requirements:
Tuition fees: Most schools accept tuition fees in quarterly, half-yearly or annual instalments, giving parents some flexibility.
Exam fees: These are typically collected twice annually – once during the mid-term, and once at the end of the term.
Miscellaneous/Optional Expenses: Expenses like field trips, project materials, additional coaching etc., could be optional but also add costs.
How an instant personal loan can help manage education expenses
An instant personal loan is a financial service that lets you borrow funds to pay for a range of reasons, including school/higher education fees. Such personalised loans are available online, via lenders’ websites and mobile apps, where you can register and begin the loan application process.
As a parent of a school/college student, you can either opt for instant disbursal of the entire loan amount or select the flexible withdrawal feature. The latter allows you to access the entire loan amount in smaller chunks, based on your requirements, as opposed to a full disbursal wherein you take the entire amount upfront.
For instance, if you get an approved loan offer of ₹5,00,000 from FIRSTmoney by IDFC FIRST Bank you can withdraw the full amount or in parts based on your requirement. Funds are disbursed directly to your bank account in as little as 10 minutes. The process is 100% digital and doesn’t require any paperwork or document uploads. Interest is charged only on the amount you withdraw and not on the entire approved loan offer.
Understanding on-demand loans (flexible withdrawal) features
Here are some salient features of the on-demand facility available with FIRSTmoney instant personal loan:
Borrow as needed: With your flexible loan, you can borrow money as needed, instead of the entire approved amount at once.
Cost-effective: You are charged interest only to the amount you withdraw, keeping your costs lower. This feature prevents over‑borrowing, while reducing unnecessary debt burden.
Easy Access: You can easily access the funds from the approved loan offer, at any given time and keep the unused funds for later needs.
Adaptability: The flexible withdrawal feature is the ideal solution for staged expenses, such as tuition fees, school uniforms, project material costs, etc., enabling you to pay instalments are needed.
Offers controls: You can borrow funds as and when required and easily repay the loan in pocket-friendly EMIs. This way, you don’t face the burden of a big expense all at once.
Managing school expenses efficiently
Let’s say your daughter is studying in the 9th standard in an IB school in Mumbai. Here’s how you can breakdown her expenses from the time the school reopens until the academic year ends:
| Month/Stage | Expected Expenses | Example Amount in INR (₹) | Efficient Strategy |
| June–July | Admission, tuition (term fees) | 1,20,000–1,50,000 | Pay term‑wise, use school payment plans |
| July–August | Uniforms, books, stationery | 25,000–35,000 | Buy essentials upfront for school use |
| September–October | Field trips, competitions (need-based) | 15,000–25,000 | Allocate monthly savings for extras |
| December–January | Exam fees, coaching support | 20,000–30,000 | Use flexible drawdown or earmarked funds |
| March–April | Immediate affordability | 40,000–60,000 | Plan ahead, stagger payments if possible |
When flexible borrowing is better than a lump-sum loan
The primary difference between flexible borrowing and lump-sum loans lies in the way you can access funds (need based withdrawal facility vs one-time disbursal) and the interest levied (only on the funds withdrawn vs the entire loan amount).
Some other features that make flexible borrowing a superior option include:
Control: With flexible borrowing, you can withdraw funds in stages whereas a lump‑sum loan locks you into a single disbursement.
Efficiency: You can avoid idle debt with flexible borrowing as interest in not charged on the entire amount credited. With a lump‑sum loan, you must pay interest even on the unused funds.
Suitability: Flexible borrowing helps you manage any unpredictable costs; including school trips, competition costs, etc., while lump-sum loans are best suited for fixed, one-time expenses.
Conclusion
The flexible withdrawal feature also known as on-demand loans by FIRSTmoney is indeed an excellent facility that allows you to take control of your personal loan. You don’t have to pay any interest on idle, untouched funds, and you can make withdrawals as needed. The additional facility that allows you to borrow more money if needed, after repaying EMIs, makes it a good alternative to a lump-sum loan.
Frequently Asked Questions
Can I use an instant personal loan for school fees?
Yes, you can use instant personal loans for any personal financial need including to pay school fees. If you are looking for one, apply for the FIRSTmoney instant personal loan via website or app and enjoy 10-minute loan disbursals of loan amounts from ₹50,000 to ₹15,00,000.
Can I borrow ₹50,000 now and more later?
Yes, if you opt for an instant loan with the flexible withdrawal facility like FIRSTmoney, you can most definitely take on a ₹50,000 personal loan now and borrow more funds later as needed. The actual loan amount depends on your approved and available loan offer.
How does a top-up loan work?
A top‑up loan allows you to borrow an additional amount over your existing loan, without you having to take on another brand new loan. It gives you access to extra funds while continuing with the same repayment structure. E.g., if you need an extra ₹1 lakh loan on your ongoing ₹2 lakh loan, you can use the top-up loan facility. However, the availability of a top-loan depends on the lender policies.
The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.
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