Should You Choose a Personal Loan to Manage Your Child’s Education Abroad?

Student loans or higher education loan may be the first choice for many; but an alternative solution is gaining in popularity – a personal loan for higher studies.

Apart from the learning in the classroom, education programmes abroad also expose your child to new experiences, cultures, and more, while adding serious weight to their CVs.

With a number of foreign universities opening their doors to Indian students in recent years, now is a great time to plan your child’s education abroad. From undergraduate programs in new fields to doctorate studies in traditional streams, there is an ocean of opportunities waiting to be explored. Apart from the learning in the classroom, education programmes abroad also expose your child to new experiences, cultures, and more, while adding serious weight to their CVs. But living in a foreign country – with tuition fees, books and stationery, living expenses and more – is expensive. A recent report published in The Economic Times states, to maintain the standard of life that Rs.1 lakh offers in Delhi, you will need Rs.5.3 lakh if your child is to study in New York. And it may not always be wise to dip into your savings account to cover the costs of studying abroad. Student loans or higher education loan may be the first choice for many; but an alternative solution is gaining in popularity – a personal loan for higher studies. Read on to know how a personal loan can help you manage overseas education expenses.

Tackle a range of expenses with just a single loan

Personal loans do not have any restrictions when it comes to amount utilisation. You enjoy restriction-free usage and can use the sanction for all overheads, be it accommodation charges, tuition fees, transportation costs or other auxiliary expenditure. Higher education loans, on the other hand, are more restrictive. For instance, your student loan sanction may cover basic tuition costs only and you may need an alternate source of financing for other expenses. That being said, for personal loan to accommodate a wide range of costs, it should offer ample financing. You get this with lenders like Bajaj Finserv and that too, without needing to pledge collateral. To illustrate, with the Bajaj Finserv Personal Loan, you stand to get financing of up to Rs.25 lakh. Repay the loan conveniently over a flexible tenor As indicated, education costs can amount to a hefty sum and to avoid throwing your budget off course, it’s vital that you plan for repayment wisely. Generally, the higher the principal you apply for, the longer your tenor should be. This ensures that your EMIs remain budget-friendly. To be able to choose an option that’s most convenient for you, partner with lenders like Bajaj Finserv. Here, you get the freedom to space out your EMIs over a flexible tenor that extends up to 60 months. When applying, make use of the online personal loan calculator to arrive at a tenor that best compliments your repayment capacity. Withdraw on the go, as per your financial requirements To help you tackle unpredictable expenses like visa, transit, and future-exam costs, Bajaj Finserv allows you to withdraw amounts from your total sanction on the go via the Flexi Loan facility. Here, you can borrow in parts, multiple times, as and when a need arises. You can do so without having to make a fresh application, and interest is charged only on the utilized amount rather than the entire sanction. As far as repayment goes, you can choose to pay interest-only EMIs for the initial part of the tenor. Avail financing via easy-to-meet eligibility criteria Usually, to obtain a regular higher education loan your child must score well in entrance exams and secure admission at an approved institute. While this may be restrictive, a personal loan is easier to avail. Here, the eligibility criteria focus on your credit history and repayment capacity rather than on your child’s academic performance or on the specifics of the course. To illustrate, personal loan eligibility criteria listed out by Bajaj Finserv are simple and with a credit score of 750 and a steady flow of income, you should be able to obtain approval without hassles. So, should you be choosing a personal loan to manage your child’s education abroad? With so many factors in favour of them, the answer is a resounding yes. Moreover, if you need access to an instant personal loan, you can simply check your pre-approved offer from Bajaj Finserv. By entering basic details, you enjoy access to quick financing via a customised deal. Powered by Bajaj Finserv