Neha, 22, receives an acceptance letter from a university abroad. She approaches a bank to apply for a loan for higher studies. But her university is not on the bank’s list of educational institutes. So, the bank rejects her application. A relative advises Neha to look at a Personal Loan for higher studies. But Neha has doubts. What should she do?
What is a Personal Loan?
Banks provide Personal Loans to meet the immediate financial needs of their customers. Customers need not provide any security or collateral for availing them.
When can you use a Personal Loan?
You can use your Personal Loan for a variety of personal needs. These may include
- Medical expenses or a holiday
- Your wedding or a family member’s wedding
- Higher education
Read the blog : Popular Reasons to Take a Personal Loan
Why take a Personal Loan for Higher Studies?
Many banks and financial lending institutions offer higher education loans. So why would you need a Personal Loan for the same? That is a valid question.
The problem is this: Many education loans become available only if you gain admission to a set list of institutes. Besides, the loan amount provided might not cover all expenses.
Here is where a Personal Loan can help you. This loan for higher studies can cover the entire study course. Or, you might take it to meet additional costs not covered by an overseas study loan.
How Can You Use a Personal Loan as an Abroad Education Loan?
Is your university on the bank’s preset list of institutes? If not, you may not get an abroad education loan. This is often the case if it is a new foreign institute. Banks and financial institutes in India may not recognise its validity yet. If you cannot get a study loan for abroad, a Personal Loan could help.
What is the Process of Applying for a Personal Loan?
Applying for a Personal Loan is easier than applying for an education loan. The bank will not ask for proof of admission, mark sheets, and so on. The documentation is minimal. You will find it easier still if you have an account with the bank. The disbursal of the loan amount is quick. The entire process is hassle-free. Some banks offer their customers pre-approved Personal Loans. This makes the process even easier
What are the Personal Loan Interest Rates and Tenures?
The tenure of a Personal Loan ranges from one to five years. You repay the bank via equated monthly instalments (EMIs). Personal Loan interest rates start at 11.49%. Meanwhile, the abroad education loan interest rate starts from 9.7%. Yes, the Personal Loan rate is higher. But the process for an educational loan is longer. Besides, there is no guarantee of approval.
Thus, the Personal Loan for higher studies has several advantages. Your Personal Loan can easily double up as an overseas study loan. Studying abroad is expensive. So, your Personal Loan can make up for any deficiencies in finance. There are many ways to use the funds from a Personal Loan. Use it for your flight tickets or your accommodation abroad. Even books and project material are costly. The Personal Loan will be helpful here as well. So, do not hesitate. Take a Personal Loan and make your dreams come true.