Why You Should Consider Personal Loan for Education?
Procuring loan for taking up professional courses or higher studies is something that has been considered by almost every parent. Given the high fees of such courses, it comes as a great aid to pursue your academic aspirations. While most obvious solution may seem to go for an education loan, there are many reasons a personal loan for education may prove to be a wiser choice.
Whether it’s an education loan or a personal loan, there are a few things which will always be important factors of consideration to apply. For instance, your credit score is one of the important factors; a healthy score of 750 or above makes it easier for you to avail the loan. Furthermore, the eligibility norms for both, education and personal loans are different. The former can be availed only for a graduate or a post-graduate degree or a post-graduate diploma course. Applicant must be of 18 – 35 years of age and must present an admission proof in one of the UGC / AICTE recognized college or institute. Also, a co-applicant viz. a parent, a guardian or a spouse is required to avail the loan, in case the applicant is pursuing a full-time course. On the other hand, a personal loan can be availed by complying with simple terms. A salaried individual or a business professional between the age of 21 – 65 years can avail a loan with business proof and documentation of 2 years and a minimum income of Rs. 3LPA.
For personal loan for education, the interest rate may vary and may be on a higher side as compared to education loan. The repayment in the form of EMIs for personal loan starts immediately after the disbursal; for education loan, it usually begins after 6 – 12 months of availing the loan. This period is known as moratorium period; you can also start paying interest during this period. There are also tax benefits associated with education loan. Despite this, your decision may really depend on what kind of flexibility & end use you are looking for from your loan. Education loan is disbursed to the institute directly. Once your tuition fees and other fees are covered in that, you can claim the remaining amount for auxiliary expenses. On the other hand, personal loan is directly credited to your account few days after the approval and you can then use it as per your need. Personal loan for education also offers flexibility to use the funds as you want. It can be used to sponsor education, to meet the medical expenses, renovate home or anything else; you can take care of multiple things from your personal loan.
At MYFI, we provide personal loans online for your varied uses. We are one of the leading lending avenues that connects the borrowers and lenders. The application and documentation processes are completely online which makes the entire loan availing process smooth, easy and fast for you. So, don’t let your financial limitations stop you from pursuing your dreams. Apply for personal loan online with MYFI and fly!