While studying overseas is an enriching experience, it usually costs a hefty sum. In fact, you’d probably have to spend anything from Rs.5 to Rs.10 lakh or more every semester, depending on the country and course your child chooses. Further, when you factor in accommodation, visa charges and other ancillary expenses, you’re looking at a cost that runs into several lakhs per annum.
However, finance shouldn’t be a roadblock in the way of an overseas education, especially if you’ve been saving for it. This is because today, you can supplement your corpus with ease as you can get personal loan offerings that match your requirements. These are easier to obtain than regular education loan and do not bear any usage restrictions.
Continue reading to know more about giving your child the best education abroad with a personal loan for higher studies.
What is a personal loan?
A personal loan is a collateral-free loan that you can use to for any purpose you desire. You can use the funds for a wedding, a medical emergency or for a down payment just as easily as you can use it to finance your child’s higher education.
Why get a personal loan over an education loan?
- One loan for all expenses
At first glance, a higher education loan may seem like an obvious choice to fund your child’s overseas education. However, education loans tend to have spending restrictions and you may not be able to use the finances towards an end that’s not course-specific. On the other hand, if you get a personal loan, you can tackle all expenses that come your way, be it academic costs, flight tickets, or living expenses.
Lenders like Bajaj Finserv offer Personal Loans for Higher Education of up to Rs.25 lakh, thus providing ample financial assistance. Moreover, you get this without having to pledge collateral. In case of a student loan you may be asked to pledge collateral for financing over Rs.7.5 lakh.
- Flexible repayment options
Though personal loans do not offer a moratorium period, they do offer you a flexible tenor, generally spanning up to 60 months. You can use the personal loan EMI calculator to forecast your EMIs and chalk out repayment according to your financial capacity. You can extend the tenor to enjoy a relaxed repayment schedule or pay fewer, but higher EMIs to reduce your net interest outgo.
What’s more, if you opt for Bajaj Finserv’s Flexi Loan facility, you can borrow as you go from the sum granted to you, and pay interest only on what you use from it. Also, you can opt to repay via interest as EMIs for an initial part of the tenor. Picking this repayment method helps you to cut down your instalments by up to 45%.
- Easy-to-meet eligibility criteria
To get an education loan your child has to have a stellar academic record, and may have to study a course that’s job-oriented and belongs to the financier’s approved list. This makes qualifying for the loan a tricky process. However, to get personal loan you to have a good CIBIL Score and ample income. Apart from this, you only have to meet age and nationality criteria to qualify. In fact, if your credentials are noteworthy, you can also secure a favourable interest rate on personal loans.
- Instant approval and quick disbursal
An education loan application process is long-winding and involves quite a few documents. In contrast, a personal loan has a simple application process. Besides, you’re only required to submit a handful of basic documents such as bank statements, salary slips, employment ID, and Aadhaar card to prove your eligibility. Once you qualify, Bajaj Finserv offers approval in 5 minutes, followed by disbursal in 24 hours. This ensures that you get the funds on time to make payments as per the educational institute’s deadlines.
How to get a personal loan quickly?
If a personal loan is the tool that will aid your finances and make an overseas education viable, start by shortlisting lenders. Apply with one offering you a winning deal in terms of features as well as the interest rate. You can get personal loan financing with ease by simply applying online.
However, if you’d like to expedite the personal loan process, you can check your pre-approved offer from Bajaj Finserv. Sharing your name and contact number helps you unlock a tailored financing deal instantly, so that you can make your child’s overseas education dreams a reality.