When your child gets a call from a university regarding selection for the admission process that thing makes you worry about how much your expense will be. Many universities give limited days to apply for admission at that time urgent funds are the requirement for every parent. There is a personal loan facility for the parents to avail of the required amount of funds for the fees of their child for which the process will not take much time. Since it is an education-related personal loan bank will try to give you a wide range of fund selections.
Factors Involved during higher education personal loan
- All required documents will be asked by the lender. And also since it is for quick purposes and the amount is high the lender can take time in the documentation process for verification. Which includes a Driving license, Aadhar, passport, pan card copy, required slip from the university or school, etc.
- If you don’t have enough credit score then the bank won’t allow you to have the full fee amount. If you don’t meet the requirement of 750 or above CIBIL score then the bank may question your eligibility to avail personal loan. This also can affect your personal loan interest rate.
Deutsche Bank Personal Loan offers up to Rs 15 Lakh of loan where you can have both cash basis transactions and bank to bank transfers.
- A good income source plays a crucial role because the rate of interest on a personal loan is on the higher side where paying the debts is mandatory for continuous fee payment also. There are times when people are not able to pay EMIs at intervals then banks start to take action.
- If you don’t meet the criteria then you can appoint a co-applicant for your child’s education to pay fees which will help in availing of the loan amount easily and if the credit score and income source are enough of that co-applicant he/she can be able to get your reduced debt amount. If you aren’t able to pay the debt amount then your partner will become liable for you.
Education loans and personal loans for education purposes both have a difference. Education loans have drawbacks if you don’t get them quickly but have a low-interest rate. A personal loan has a higher interest rate but quicker approval so you have to decide which one to choose. When you are in urgent need only then look for a personal loan because it can cost you an extra amount of debt. Yes, there will be a discount because for education purposes but for some amount, it can help only.
It is recommended to take the lowest number of the fund with proper calculation through the EMI calculator as an idea as well as how much you have to pay as well.
Must read:- Beginner’s Guide to Personal Loan
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