While pursuing higher studies can open doors to greater career prospects, it comes with several considerations. The most important of them is financing higher education expenses, such as tuition, study materials, and living expenses, if you are moving away from home. The list of expenses can seem never-ending, but it becomes more manageable with a Loan for higher education.
With the cost of higher education skyrocketing, whether in India or overseas, Personal Loans for higher education are one of the best means of covering the necessary expenses. Covering multiple costs from tuition fees to living expenses, Loans for postgraduate studies offer an opportunity for students to pursue higher education without the immediate financial burden.
Types of Personal Loans for higher education
It is crucial to understand all the Loan terms and the associated costs to make informed decisions. Properly managed, a Loan for higher education can be a valuable investment for your career. These higher education funding solutions can be broadly categorised based on location, type of course, and the necessity of collateral.
Depending on the location:
- Domestic Education Loan - For studying within India.
- Overseas Education Loan - For studying abroad.
Depending on the course:
- Undergraduate Education Loan - For bachelor’s degrees.
- Postgraduate Education Loan - For master’s or higher degrees.
Depending on the type of security/collateral:
- Secured Education Loans: Requires an asset such as a property to be pledged as collateral.
- Unsecured Education Loans: Do not require collateral.
How to choose the best Personal Loan for higher education?
Choosing the Overseas Education Loan that suits you is of utmost importance. Here are things to remember while you look for the best Loans for Higher Education:
- Compare the available options: Consider whether you want to apply for a traditional Education Loan or a Personal Loan for higher education. Personal Loans are unsecured and come with flexible repayment tenures of up to 60 months. However, unlike Education Loans, the repayment for Personal Loans starts within 30 to 45 days of Loan disbursement.
- Check your eligibility: Lenders have specific criteria, including credit history, age, academic history, and collateral requirements. Ensure that you carefully study the criteria and meet them.
- Disbursal of Loan: It is essential to ensure the Loan is disbursed on time to facilitate further processes such as visa applications. Consider the visa requirements of your country of study to determine whether you need a lender that provides pre-approval for visa disbursement.
- Remittance of Loan Amount: Check the program requirements to confirm whether the funds are to be remitted to the university account or a Savings Account, and choose a provider that can comply.
Conclusion
If you are considering a Personal Loan option for higher education, SMFG India Credit offers Loan amounts of up to Rs. 30 lakh. The interest rates start at only 13% per annum with flexible repayment terms. Parents can also avail of this Loan option to fund their child’s education in India or abroad.
