Can I use my Personal Loan for Education Purpose? Overview
Now there is no dearth of good institutes for studies. Along with this, the demand for professional courses in the best education centers has also increased. But good education costs a lot of money which can become a hindrance in fulfilling the desires of a student. Due to which the help of loan has to be taken to meet the education related needs.
Personal loan is a popular loan. It can be used for any work. This is an unsecured loan. There is no need to pledge any security or any item with the bank to take it. You can take a personal loan for buying a favorite gadget for yourself or family, for traveling around the country and abroad, buying expensive items for home use, children's education or any other work. Personal loan borrowers do not have to provide any guarantor or take collateral/pledge. It is because of this feature that it is so popular.
Education loan can be taken only for studies and related expenses. Unlike personal loans, education loans are taken for a specific purpose. In an education loan, the student is the main borrower. Therefore, after getting the job, it is the responsibility of the student to repay the loan. If there is an institute in any part of India, this loan can be taken for studies there.
Education loans are usually given in the name of the student, so there is a need for a co-applicant or guarantor. In case the loan amount exceeds Rs.7.5 lakh, the lender may also ask for an additional security deposit.
The key feature difference between personal loan and education loan:
The loan amount should be finalized after analyzing your financial position. if you opt for an education loan, the amount will be may differ from lender to lender. Apart from education loan, a personal loan can also cover other expenses like food, housing etc. You can check your eligibility using Personal Loan Eligibility Calculator before making the final call.
The interest rate of personal loan is usually higher than the education loan. The interest rate for the personal loan can be range between 10.99% to 24% and the interest rate of education loan can vary from 8.30% to 24% with concession of 0.5% available for girls. Also, if a student starts repaying the loan during the moratorium period, then he gets a rebate of 1% in the interest rate.
If you go for personal loan, the loan tenure will not exceed 5 years. In case of education loan the tenure will be between 8 to 10 years, which will obviously reduce the amount of monthly EMI.
What are the things that I should look for before applying for a personal loan?
- Interest Rates
- Flexibility in repayment
- Processing fee
- Costumer service
Is education loan better than a personal loan?
Federal loans are the better option between the both loans. Federal student loans generally charge lower interest rates than private loans only for students & especially for graduate students
So, if you want to apply for personal loan you can apply it without any fear with GRD India financial services Pvt. Ltd. as per your needs and requirement.
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For online application visit- www.grdindia.in
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