Education loans are often limited in their utility and might not cover for expenses other than your tuition fees. A personal loan for higher education, on the other hand, can really help you kick-start your career with its multi-purpose use.
Education is a costly affair in this country. So you should have a proper plan in place for your higher education to build the future you’ve always wanted. It is not only the tuition fees that you have to account for; travelling expenses (if the university is in a city other than your hometown), cost of accommodation and books, rent and other regular expenses start piling soon after. Moreover, specific loans for education can often attach high rates of interest that might dent your funds, making repayment a problem at the end of the loan tenor. In such circumstances, a higher education loan can be the deciding factor for your endeavours of academic excellence.
Discussed below are a few reasons why a personal loan can help you get the best quality higher education:
- You don’t have to take a guarantor on board
Being an unsecured mode of finance, you will neither have to provide any collateral to avail the loan nor get a friend or a relative to sign up as the guarantor. This is one of the more crucial features since it is not only difficult to get a guarantor during your university days (because they generally don’t consider you financially viable), pledging an asset, if possible, could be risky when you are still a student.
- You can plan your finances well
A personal loan for higher education usually attaches a flexible repayment tenor, ranging from 1-5 years. This gives you extra room to fine-tune your financial requirements and accordingly select a tenor that complements your objectives, making the repayment easy and hassle-free.
- You can use the loan as you need
One of the more serious limitations of an education loan is that its scope is often restricted to the tuition fees. Sometimes, the institute of your choice might need to feature in the lender’s list of pre-set universities for them to sanction an education loan. On the contrary, personal loans are more versatile – you can avail such a loan to pay for accommodation, food and rent, travelling expenses, tuition fees and other routine expenditure that you incur.
- You don’t have to worry about eligibility
Being an unsecured loan, lenders often set convenient eligibility criteria with a personal loan. This helps you get easy access to quick finances, something that can be very important while you are busy zeroing-in on the right university for yourself or making last-minute changes to your travel itinerary. For example, with a Bajaj Finserv Personal Loan for Higher Education, you can avail up to Rs.25 lakhs, coupled with minimum documentation and money-in-bank guarantee within 24 hours of document verification.
You can check your personal loan eligibility using this simple eligibility calculator.
- You can save up on vital money
Certain lenders and financial institutions such as Bajaj Finserv offer a Flexi Personal Loan arrangement that allows you to withdraw as much as you need from within the sanctioned limit and pay interest only on what you borrow, rather than the entire loan limit. This brings down your annual interest outgo, helping you save money that you can further invest in your higher education.
- You can build good credit for yourself
Bajaj Finserv offers the Flexi Interest-only loan facility that allows principal holiday for the initial part of the loan tenor. This reduces the EMI component, while helping you set aside funds that would be needed to pay the monthly instalments. Building a good CIBIL score for yourself requires you to manage your money wisely, and this feature goes a long way in ensuring just that.
It’s easier than ever to avail finances with a quick 1-step verification and disbursal of funds, with NBFCs.