Rahul was a talented student since childhood, and he had dreamed of becoming an engineer. After completing his schooling, he wanted to go abroad and pursue his graduation. He even got admission in the New York University, but since there was a problem of shortage of funds, his prospects looked dim.
His father’s savings was not enough to cover various other expenses including tuition and accommodation. He thought of giving up the idea of joining the New York University when his friend who had joined the same college in the USA interacted over Skype and suggested availing a personal loan for higher education.
The idea clicked with Rahul who suggested the same to his father. His father applied for a personal loan for higher education and got a loan of Rs. 25 lakh. He availed the loan at a lower rate of interest since he had a strong CIBIL score, clean repayment history, and a stable job history.
He had earlier applied for education loan also, but it was rejected since he did not have a co-borrower and also collateral to keep.
If you are like Rahul whose education loan was rejected, you can avail an unsecured personal loan for higher education without pledging a security.
Personal loan for higher education benefits
A personal loan for higher education has many benefits when compared to an education loan, have a look.
- Easily available
A personal loan for higher education is easily available, and there are fewer formalities when compared to an education loan. An applicant gets a quick online approval, and the money is in his/her bank account sooner than expected. As a result, a student and parents looking for instant money solution can turn to a personal loan for higher studies.
- No collateral and no security
Unlike an education loan, you need not arrange for a guarantor if applying for a personal loan for higher studies. As a result, this kind of loan is a blessing in disguise who don’t have any asset to keep as collateral.
- Cut-throat interest rates
Yes, a personal loan for higher education is available at a higher rate of interest as its collateral free loan and may be a bit expensive when compared to education loan. However, if you have a good credit score with a clean repayment record, you can get it a lower rate of interest.
- A higher loan amount
A personal loan for higher education can presently give you an instant access of up to Rs.25 lakh which is considered a fair amount of money to cover your educational needs. Also, the repayment tenor is also flexible which makes it easier for you to pay the EMIs without disturbing your monthly earning and spending pattern.
The Bottom Line
Compared to an education loan, a personal loan for higher education has an edge regarding the convenience, approval, money disbursement, guarantors and more. If you want to apply for a higher education and pursue a degree abroad and have some fund shortage, you now know which types of loan to apply right away!