We currently live in an extremely competitive world. One in which a person’s education can be crucial for their growth and survival. Certainly, today there are various sectors and many professions worth working in. But doing well in these fields can mean having considerable knowledge and specialisation. And this does not come cheap.
Higher education today can entail various expenses. These can include costs such as fees, tuitions, and living expenses. Here are the different ways in which a personal loan can help with all these educational expenses.
Note that currently, various NBFCs offer personal loans for up to Rs. 25 lakh. The approval process for this can take really less time. It may even be completed in 5 minutes. Further to this, the loan amount gets transferred to the borrower within 72 hours after approval.
Simpler approval process:
While applying for a personal loan for education, the borrower is not required to submit any educational documents. As personal loans are unsecured and do not involve any collateral, the whole approval process can involve minimal paperwork.
However, the financial institutions can have some eligibility criteria:
The person applying should be in the age group of 25-58 years
There can be a certain minimum salary requirement. For example, in the cities of Mumbai and Bangalore, the applicant should have a minimum salary of Rs. 40,000
Thus, overall the process is simple, and it can be easier in the case of an online application.
In comparison, an education loan can present certain problems. This is because numerous banks have a particular list of approved institutes. As a result, students applying in any new institute may not be able to avail this facility. Moreover, the approval process for an education loan can take some time. What’s more of a concern is that there is no guarantee about the loan being approved. As a result, a student may end up having to bear around 15% of the total cost of education.
Flexible repayment tenor:
For students and their families, repaying a personal loan can be a considerable expense. But it’s worth noting that the repayment terms for a personal loan can be flexible, and can be around 24 to 60 months.
Moreover, as the EMI amount can be an expense, the borrower ends up paying every month, it’s worth looking into personal loan EMI calculators. These calculators are available on various sites which help in calculating the EMI amount a borrower will have to pay according to the loan amount, tenor and interest rate for a particular personal loan.
Note that existing customers of certain NBFCs can even avail attractive pre-approved personal loan offers. Furthermore, access to an online loan account also makes it easier to keep track of repayments on the personal loan.
When it comes to education, a student would be well-advised not to compromise. The right course, the best institute and proper guidance make a huge difference in the long term. Hence, while applying for higher education, it’s worth keeping in mind the above benefits of a personal loan for education.