Education in the present times has become fairly expensive and taking a personal loan for higher education is one of the best solutions for parents to sponsor higher education for their children. This is required as parents try their best to ensure that their children get to study at the college of their choice and pursue a line of education that they are keen on. Many parents even ensure that their children go to foreign universities for higher education. This is certainly an expensive proposition and is very stressful when they have to suddenly let go of their hard-earned savings to secure the future for the next generation.
The expenses of higher education are not limited to the college fees but include the cost of books, extra classes, hostel, food, and other sundry expenses as well. These increase the cost of education by quite a margin and many times, it may not fit in the budgets even after pouring all their savings into it. Considering the circumstances, taking a loan and repaying it over a longer period of time is a more comfortable option.
What Is Personal Loan for Higher Education?
A personal loan is an unsecured loan that permits borrowers to use the money for a purpose of their choice. Higher education is one of the common reasons why people opt for a personal loan. This loan, when taken for this purpose, has the capability of adding the desired skills to their profile and ensuring a secure future. This is done without risking the lifestyle or savings of the parents. The EMIs for loan repayment can be easily estimated using a personal loan EMI calculator before you apply for the loan.
How Is a Personal Loan for Education Beneficial?
- Cover All Expenses of Higher Education
An education loan only covers the cost of the tuition fee, but when you take a personal loan, you can also cover the other expenses comfortably. If the child needs to go abroad, there are also the expenses of visa, travel, accommodation, local transport, and other lifestyle requirements. The amount that you can borrow under personal loans can go as high as 25 lakh depending on the financial status and credit score of the borrower. With the loan, the students need not compromise on their needs when living away from the parents and the parents can also be stress-free.
- Avail the Flexi-Loan Facility
When you take a personal loan, you can discuss with the lender beforehand to find if they have a Flexi-loan facility as you would want to use the money for educational purposes. Under Flexi- loan, you can get a larger amount sanctioned but need not use all of it at the same time. You can use only part of it and pay interest only on the amount used. This gives you the security of having funds to tide you over in case of an emergency while being lighter in your pocket. This also allows you to choose to pay smaller EMIs consisting of only interest and the payment of the principal can be deferred to the maturity period.
- Get Quick Approval and Disbursal
When securing admissions in college, a lump-sum needs to be paid in order to secure the admissions. For this, quick loan approval is required. When applying for a personal loan, you can utilize the document-pick up service offered by lenders and speed up the approval process. The disbursal of personal loan can be carried out within 24 hours of approval. This reduces the stress of a child losing his/her seat in the desired college due to a lack of funds.
Before you apply for a personal loan for higher education, do check out the offers with various lenders that are associated with the college your child is aiming for. This can help you get the best deals to suit your pocket.