4,80,000 people visited this section in last 30 daysApply Online

Get Cashback of Upto ₹ 1,000* on Loans Apply Online

MyLoanCare Customer Ratings - 4.5/5.0 Apply Online

How to Finance Your Education Abroad Using a Personal Loan?

2021-06-07
2 Min Read
Author - Megha Khanna
How to Finance Your Education Abroad Using a Personal Loan?
133 views

Education abroad has become an aspirational benchmark for everyone to excel in any segment of the industry. However, the cost of education is quite expensive and is rising every year. From 2015 to 2018, studying costs abroad have increased by 44%.

  • Undergraduate courses cost around Rs. 8 lakhs to Rs. 20 lakhs.
  • The cost of studying postgraduate courses is between Rs 9.1 lakhs to Rs 22 lakhs per year. The MBA degree's cost is even higher, and it can go up to Rs 30 lakhs per year.

Parents, therefore, need an educational loan not to risk their savings to finance the education of their kids. However, education loans only cover the tuition fees but there are other costs associated with the fees which are accommodation and living expenses. To cover the expenses of living abroad, financial institutions in India offer personal loans for education

Why should you go for a Personal Loan to Finance Education?

All Expenses under One Loan

An education loan can be availed and utilized for education-related expenses during your course. If you opt for a personal loan, the loan amount can be utilized for pre-study expenses like flight tickets, housing expenses outside the college campus, food expenses, etc. The borrower is free to decide where and how to use the loan amount.

Flexible Loan Amount and Tenure

Personal Loan for Education can help you adjust tenure upto 60 months and apply for a preferred loan amount upto Rs. 75 Lakhs. While in education loans, the loan is provided for college tuition fees only. In a personal loan, the loan amount can be used for various education expenses like tuition fees, books, living expenses, miscellaneous expenses, etc.

Affordable Interest Rates

An education loan interest rate depends on various factors like your exam scores, the university abroad where you are willing to apply, the course duration of your degree, etc. At the same time, personal loan interest rates are much better as online personal loan is availed based on your credit score and other requirements. As of 3rd June 2021, the interest rates on personal loans are at an all-time low starting at 10.25%.

Minimal Documentation

In order to get an education loan, there are high eligibility criteria and requirements, but a personal loan is available at minimum documentation. All you need for a personal loan is identity proof, address proof, employment history, employment type, salary slips, bank statements, and credit reports. Financial institutions also offer pre-approved loans for specific customers, making it easier to avail of a personal loan quickly and hassle-free.

Fast disbursal of a Personal Loan

The procedure to apply for an education loan, loan approval, and disbursal is very lengthy and time-consuming, whereas a personal loan is a time-saving option where an individual can get a loan instantly within 24 hours after approval.

Documents Required for Personal Loan for Abroad Education

  1. Completely filled Personal Loan application form of the respective lending institution.
  2. Passport-size photographs
  3. PAN Card
  4. Address and Identity Proof
  5. Banks' statements are required by the financial institution
  6. Salary Proof

Therefore, it is important to consider a personal loan for higher education or professional courses, whether in India or abroad. A personal loan is more feasible than an education loan. The perks of availing of a personal loan are far greater than an education loan.

An individual should compare the interest rates of a personal loan of various banking and non-banking financial institutions. An individual should apply for institutions offering attractive interest rates with flexible loan tenure. To avail of a higher loan amount, your credit score must be high, and one must have a good stable income.

About Author

Megha Khanna
Megha Khanna | Living, loving and laughing | She loves writing and reading in her free time. Working with MyLoanCare since 2019

What are you Looking for? Looking for a Loan? Looking for an Investment?

Trending Articles

Exciting Features Expected from WhatsApp in 2021
Exciting Features Expected from WhatsApp in 2021
READ MORE 2,427 VIEWS
WFH v/s WFO- Professional Life in the times of Covid
WFH v/s WFO- Professional Life in the times of Covid
READ MORE 1,793 VIEWS
Best YouTube Channels for Investments in 2021
Best YouTube Channels for Investments in 2021
READ MORE 1,703 VIEWS
How would you rate this Article?
Notification ×
  • Home Loan

    Home Loan at all-time low rates starting at 6.65%. Cashback of up to ₹ 1,000.

    Apply Now
  • Personal Loan

    Instant Personal Loan starting at 10.25% with Cashback of up to ₹ 1,000 .

    Check Offers
  • Gold Loan

    Instant Gold Loan starting at 9.50% with Cashback of up to ₹ 500

    Apply Now
  • Loan Against Property

    Best Loan Against Property Offers starting @ 7.20%. Cashback of up to ₹ 1,000*.

    Apply Now
  • Business Loan

    Collateral Free Business Loan Rates starting at 14.00% with Overdraft facility.

    Apply Now
  • Fixed Deposit

    AAA rated FDs with returns as high as 6.95%.

    Invest Now
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
Loader
Please wait while your information is being processed...