Higher education loans are usually designed for borrowing higher amounts of money. However, it is not always important that you need that kind of funds to facilitate your education. Therefore, an easy alternative that can be utilized is a personal loan for higher education.
Personal loans are more flexible than a typical higher education loan. Moreover, it is available for people from all walks of life irrespective of their salaries.
In case you want to narrow down the facts of a personal loan for higher education, then here is an article that you must read.
It will discuss in detail all the major points that make a personal loan for higher education the best possible option.
One of the first things that you should remember while opting for a personal loan for higher education is the repayment time frame. In case of a general higher education loan, you need to start paying after the degree course is over. However, when it comes to a personal loan, you have to pay monthly EMIs as soon as you receive the amount in your account. It is because a personal loan is usually borrowed for a lesser amount and tenor compared to a specific education loan.
When it comes to the interest rate on personal loans, it can be a little on the higher side. An education loan is less expensive, which is why a lot of people prefer the same. However, acquiring it can be tough and time-consuming. It is where a personal loan for higher education can prove to be a saving grace for a lot of people who want to study further. It is also a good option if you want a transparent interest percentage.
It is not always necessary that you may need years on end to repay your loan for higher education. It is yet another reason why a lot of people prefer borrowing personal loans for higher education. The tenor available is anywhere between 12 months to 60 months. Therefore, it gives you enough flexibility to repay the loan in a sufficient amount of time. Moreover, you can plan your financial future better and get rid of your debt way quicker than a traditional education loan.
The only thing that can make a significant amount of difference between a personal loan for higher education and education loan is the tax benefit. Higher education loans are usually deductible under certain Government schemes as well. However, when it comes to a personal loan, the concept is not the same. Even though it is not included in tax benefits, you would still receive a better financing service due to its flexible interest and extensive loan amount availability.
Lastly, to be eligible for a personal loan for higher education, you do not need to do much. A good CIBIL score, along with valid income proof, is all the personal loan eligibility criteria that you need. However, for an education loan, you need to go through many different stages. It also includes getting an admission letter from the college you selected.