Offering your children the best education is a priority for any parent. Today, with domestic and overseas college courses costing a few lakhs at the very least, fulfilling this responsibility is an expensive task. Add to this the cost of living in a new city and other lifestyle expenses and you’ll find that you have to part with a tidy sum.
This is where an education loan for abroad studies without security in India comes in handy, as it allows you to easily access funds without any hassles. Taking a personal loan for education is a judicious option too as it lets you fund your child’s education with ease, without disturbing your savings or investments. A typical education loan on the other hand, has a lengthy, long-winding procedure that requires you to pledge collateral and takes much longer to process.
This means that when you compare a personal loan vs. an education loan, personal loan for education always comes out as the winner. To understand better, take a look at the top reasons why a personal loan is best to finance your child’s higher education expenses.
Collateral-Free Borrowing Option
The biggest hiccup with most traditional education loans is collateral and its verification. Depending on the lender, this process could take a few weeks, without any assurance funds at the end of the process. A personal loan stands out in this regard as it is an unsecured borrowing option. This means that you don’t have to pledge any collateral. Lenders look into your credit history and income and decide whether you’re a good candidate.
The amount you get via a personal loan depends on the lender and your credit history. If your score is healthy, you can access a significant sanction that can comfortably cater to your needs. For example, the Bajaj Finserv Personal Loan for Higher Education offers you up to Rs.25 lakh. This amount is much higher than the average cost of overseas education, and hence gives you access to an emergency reserve too.
Relaxed Eligibility Criteria
Another benefit of using a personal loan for education is its relaxed eligibility criteria. Owing to its unsecured nature, personal loan eligibility criteria are minimal and easy to meet. However, you must ensure that you meet the terms and conditions of eligibility to the T so as to bag a quick sanction. To avail a personal loan through Bajaj Finserv, for instance, here are the conditions you must fulfill.
- You must be an Indian citizen, residing in the country
- You must be between 23 and 57 years of age
- You must be salaried and hold a position at a reputable organization
- You must meet the minimum monthly salary requirements of the city you reside in
Speedy Loan Approval and Disbursal
The unsecured nature of a personal loan allows lenders to offer you instant approval on your application, provided you meet all the requirements. Lenders such as Bajaj Finserv approve applications within 5 minutes and disburse the entire loan sanction within 24 hours. This is immensely beneficial especially for educational purposes, where you’re required to make payments by a specific deadline.
Benefit From Flexi Facilities to Ease Repayment
The Flexi loan facility is unique to Bajaj Finserv and allows you to withdraw from your sanction in parts. Here you pay interest only on the amount you use, and you can repay and redraw as many times as you wish to. This way, you can tackle unplanned or periodic education expenses with ease. Moreover, you can pay interest-only EMIs and repay your principal at the end of the tenor, reducing your EMIs by up to 45%. This also facilitates better cash flow management so that you can address other needs with ease.
While you can take an education loan for higher studies, a personal loan serves the same purpose and is easier to access too. To further expedite the process, be sure to check your pre-approved offer online and make use of customized personal loan deals.