Why to choose education loan over Personal loan?

Education plays an important role in an individual's life. Today, there are a lot of courses and top-notch universities across the globe that imparts quality education to students. Every course has its own merits and a defined fee structure for it. For instance, study an MBA would costs you anywhere between 10-30 lakhs, while engineering would cost 5-15 lakhs depending on how reputed the university/institute is. India is an emerging country and many people still lying in the middle-class segment. With the rising inflation costs, it nearly impossible to fund the entire studies of children through the savings parents have done for years towards giving quality studies.

Traditional finances are way too costly and borrowing from friends/relatives is against dignity. This is where education loan comes into the picture. There are customized education loans available in the market out there which will help you cater your financial needs at attractive interest rates. This loan is provided to students who like to pursue dream studies, however, struggle due to lack of funds.

Each study loan is tailor-made for the type, of course, you would choose, its job prospects, thereby making life easy for parents and students. It’s a self-independent way of funding your own higher studies without putting your parents’ future at stake. Private lenders are willing to offer an unsecured loan up to Rs 40 lakhs at attractive interest rates and flexible repayment options. Without good academic, credit score of parents, co-borrowers, and collaterals you can negotiate for low-interest rate deals and flexible repayment options.

Why education loan over Personal loans?

Many parents think personal loans are better than education loan; however, it’s just not true. Firstly personal loan comes at way higher interest rate around 14-25% compared to education loan, Secondly, the repayment tenure for a personal loan is mere 60 months while education loan offer repayment tenure of 100-120 months. There are no flexible ways of repayment on a personal loan and for student's loan, you can choose a convenient repayment option.

Few benefits of education loans:

Easy availability: With the competition being stiff there are reputed players who are willing to offer loans at attractive interest rates. With proper documentation, a good credit score of parents/co-borrowers and collaterals the loan can be sanctioned within 24 hours. You don't have to wait for weeks to know the status after applying for it.

100% education finance: the Personal loan is limited funding while private lenders are willing to give 100% education funding to meritorious students which is a big boost for them to achieve their dream goals. Parents just don't have to worry about single penny provided the kid holds a strong academics.

Customized loan solution for study abroad: Some private firms have come up with unique and friendly solutions such as pre-admission loan, Pre Visa Disbursement loan, score based products, 100% funding for meritorious students, wider course and country coverage, bridge up loan, etc

Moratorium Period:

The best part of study loan is, you don’t have to make immediate repayments. Instead, you can start making your repayments after six months of your course completion. It is termed as moratorium period. A sedentary lifestyle and part-time job will help you clear the interest rate to the maximum extent and thus save significantly on the loan amount.

Choose education loans and take a wise step to shape your future, now!

An personal loan would be the first financial help for your family in your absence.