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Difference Between a Student Loan and a Personal Loan

· Finance,Personal Loan,Student Loan

When you plan to take overseas higher education or in India, it is required to involve a huge financing. So, at that point of time, you can either apply for a student loan or a personal loan for higher education. As the name suggests, student loan, most of the people think this is the only option and they apply for it. Later, when they are unable to repay it, people opt for a personal loan to repay the student loan. It will be better to pay off the student loan or higher education loan with the help of a personal loan, because the rate of interest of a personal loan is much lower than a student loan.

 

Lower Interest Rates
The interest rate of a personal Loan are competitive and lower. It can be decreased further by several means, such as, if students prove a stable future income, then interest rates may decrease. If lenders get evidence of the credibility of the parents by virtue of their CIBIL rating, then interest rate may decrease.

 

Debt Consolidation
If you have availed multiple student loans, then you can take a higher studies loan to consolidate all those loans into one loan.

 

In this way, you will be able to reduce the number of debts owed and improve your creditworthiness by increasing their overall CIBIL score.

 

To know the other factors, read: http://www.kiasalon.com/know-why-you-should-use-a-personal-loan-to-pay-your-student-loan/

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