Perosnal loan for Education

How A Personal Loan Can Be Used for Education Abroad?

April 21, 2022 • 5928 views

Personal Loan for studying abroad is a good option for individuals looking to take their academic and professional development to greater heights. With education abroad, you can achieve your educational goals and set up the blueprint for a successful professional life ahead. In this blog, we will learn more about how a Personal Loan can be used for Education in Abroad. Keep Reading! 

What is A Personal Loan for Education?

You can apply for a Personal Loan for education to cover your educational expenditures. It is unsecured and thus, requires no kind of security, collateral, or guarantor. Lending institutions take into account factors like your income, CIBIL score, repayment capacity and financial history before approving the loan request. The payback period starts one month after you take the loan. 

Why Take A Personal Loan For Education?

Let us now highlight some of the advantages of opting for a Personal Loan for Education:
1. All Expenses Under One Loan – Once approved, a Personal Loan for study abroad can cover all study-related expenses abroad. Use the borrowed amount to pay library fees, or for books, travel, a laptop, housing, health insurance, and other miscellaneous expenses in addition to tuition fees. 
2. Adjustable Loan Amount and Loan Tenure – Borrowers have the flexibility to choose a payback term and loan amount for a Personal Loan based on their budget, overall expenditure, and repayment capacity. Refer to a Personal Loan EMI Calculator to calculate the payable EMI.
3. Hassle-Free Application Process with Good Interest Rates - NBFCs have simplified the online Personal Loan application process, additionally extending attractive interest rates. You simply have to fill out the loan application form with updated information. Without you having to visit the lender’s office physically, the application process will be completed in a few minutes from the comfort and privacy of your own home.
4. Quick Approval - Online applications use technology which streamlines the entire application process. As a result, you can get approval in just a few minutes. Due to a lack of collateral and paperwork, the process has been expedited even further.

Personal Loan Interest Rates and Tenure

A Personal Loan grants you financial assistance at competitive interest rates and nominal charges. Borrowers can choose to repay the borrowed amount within a flexible loan repayment tenure of up to 60 months. 
Your monthly instalment value will depend on the loan amount, the interest charged on it and the tenure you opt for. The longer the tenure, the lesser amount you have to pay per month. However, a longer term will incur higher interest charges and vice versa.

ALSO READ :- Check Your CIBIL Score Today To Get A Personal Loan

What are Personal Loan Interest Rates and Tenure to Study Abroad? 

Thousands of people across the country dream of pursuing higher studies under renowned institutions abroad. However, these dreams are associated fees which might be overwhelming for most. Personal Loan pave a secure road to realise such education goals. 
There are two factors to think about before opting for a Personal Loan for international studies, namely:
1. Interest Rates - The cost of borrowing is determined by the interest rate. It’s important that you conduct thorough research on different lending institutions and interest rates offered by them before opting for one. 
2. Tenure - The time period, beginning when the loan amount is disbursed and stretching over the period by the end of which the amount is duly repaid - is known as the loan tenure. Understanding the time frame during which you must return your loan balance is crucial. NBFCs like Poonawalla Fincorp offer flexible loan tenure of up to 5 years.

Why Prefer a Personal Loan for Education Over an Education Loan?

A major advantage of a Personal Loan which gives them an edge over an education loan is the flexibility they allow in fund-use. Education loans or student loans are typically disbursed directly into the preferred educational institution fund. However, a Personal Loan allow students the freedom to use the loaned amount as they deem necessary.

Comparison Between Personal Loan and Education Loan for Studies

Here are some other differences between a Personal Loan For Education and an Education Loan so you can pick the more suitable one for yourself:

Education Loan

Personal Loan For Education

Usually only covers tuition and educational expenses, while you have to arrange for other expenses.

Funds can be used to cover costs of housing, food, rent, transportation, books, furnishings and others

Lenders often shortlist educational institutions and grade them based on their reputation/ranking. So, in case your college/university of choice is not on the lender's list of establishments, your student /education loan may not be approved.

Reputation/ranking of the concerned University does not play a role. Instead, the credit score, repayment pattern and overall financial capabilities are taken into account before the loan is granted.

May be secured or unsecured.

They are unsecured loans so you do not have to pledge an asset.

To Conclude

With an easy application process, quick approvals, affordable interest rates and a flexible tenure - a Personal Loan for study abroad will help you fulfil your dream of pursuing higher education abroad without any hassle. Choose a Poonawalla Fincorp Personal Loan for your higher education and to achieve your education-related goals.

Frequently Asked Questions About Personal Loan for Study

1. Can I use the Personal Loan amount to pay for living costs? 
Yes, you can use the Personal Loan amount to cover living costs. It comes with no use restrictions.

2. Will I be able to leave India with a Personal Loan?
Yes, you can use the funds to meet your personal requirements, be it to leave India or anything else.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Personal Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply

poonawalla fincorp team

Poonawalla Fincorp Team

Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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