If your child can pursue a professional course from a known institute, then he/she can lead a better life as he/she can land a good job.
But the cost of higher education is on the rise, and your saved funds may not suffice the needs. The costs further go up when you want your child to go overseas to study.
But it is where a personal higher education loan and the conventional education loan for higher studies may help. But which is the better option? Read on and know more!
- Loan Amount
The personal higher education loan comes with the amount of up to Rs.25 lakh that you can use to fund the fees without issues. On the other hand, the conventional education loan comes with a rider. If the cost of the course is more than Rs.4 lakh, then you may need to pledge a collateral or have a cosigner. Hence, when it comes to amount, the higher education loan has an edge.
The funds of the education loan can only be used to fund academics. On the other hand, you are free to use the higher education loan amount not only for fees but even others. You can use it for booking travel tickets, accommodation, food and more.
If you have a healthy credit score, repayment and employment history, then you can get the loan approval within seconds. This is not true in the case of the conventional education loan. Also, the lender’s eligibility and the documents needed are less cumbersome if you go for the higher education loan.
You are now aware of the basic difference between the traditional education loan and the personal higher education loan.
You can pick one as per your needs and see your children pursuing a quality education and landing a decent job.