If you are looking to send your children for higher studies and short of funds, then you have the options of personal higher educational loan and the conventional education loan.
Let’s know some advantages of both these funding options that you can use to fund your children’s higher studies overseas. Read on!
What is the personal higher educational loan?
A higher educational loan is an extension of the personal loan that is designed to support your higher education expenses. But it does not mean that you can’t use its funds for any other purposes. Since it is an extension of the personal loan, you can use the money for many other needs under the sun other than illegal purposes.
Personal higher educational loan features at a glance
Comes with a loan amount of up to Rs.25 lakh from leading lenders
Money in your bank in 24 hours
Flexible tenor ranging up to 60 months
What is the conventional education loan?
You can avail it only for paying the course fee and nothing else. The funds are disbursed directly to your college’s finance department. You can’t use it for any other purposes, unlike the personal higher educational loan.
Education loan features at a glance
The loan repayment must start 1 year post the completion of the course or 6 months after getting the job. The EMIs are lower, and you can manage your other expenses till the time you are studying as EMIs don’t start quickly.
If you fail to repay the EMIs because of no job, then it may ruin your credit profile.
Comes with a lower rate of interest on personal loan than the personal higher educational loan.
Comes with a longer repayment period that can extend up to 20 years.
Your children’s education may also come with other expenses that you may want to fulfill like flight tickets and others. Hence, it would be smart to go for the personal higher educational loan than a traditional education loan. The rest depends on your profile and repayment capacity.