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How to Finance Your Education Abroad Using a Personal Loan?

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Author - Megha Khanna
How to Finance Your Education Abroad Using a Personal Loan?

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

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