Planning to go abroad for higher education, but your financial situation looks dim? This is quite a common situation that people face and education loans may not be the best choice always. This is because education loans involve complex eligibility criteria and lengthy paperwork- this leads to longer approval time and even longer time for disbursal of the loan amount. When you have limited time in hand and too many things to do before you leave, a better solution to fulfill your financial requirements is a Personal Loan for Higher Education. These are useful debt objects whose proceeds can be utilized to pay the college or university fees.
Personal Loans are unsecured loans that are not backed by any mortgage security and are provided by banks and Non-Banking Financial Companies (NBFCs). They are granted on the basis of the eligibility criteria and past credit repayment record and credit score of the applicant. Some lending institutions provide Personal Loans up to Rs 25 lakhs- with a large loan principal, borrowers can utilize the proceeds for accommodation and paying the tuition fees.
Listed below are a few reasons why Personal Loans are one of the best finance options if higher education is on your mind:
They Have Easy Terms of Lending
Personal loans have very simple terms of lending and eligibility. NBFCs provide these loans on the fulfillment of a few eligibility criteria. There are lesser formalities as there is no collateral and lengthy paperwork involved. The time required for approval of the loan application and disbursal of the sanctioned amount takes place in a few days. This makes personal loans ideal for situations when the money is needed on a short notice.
Low Rates of Interest
Depending on which lender you have chosen, the interest rate for the loan varies. Having a clean repayment history and a high credit score helps in availing a personal loan at a low rate of interest.
Also Read: Options to Finance Your Higher Education
A Large Principal
As mentioned earlier, personal loans can be availed for as much as Rs 25 lakhs which is a significant amount for covering education and related requirements.
Personal loans are therefore a convenient debt option that can be availed in place of an education loan.
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.