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How Personal Loans can be used to Finance Education & Career Development for your Child
Posted on Thursday, April 6th, 2023 | By IndusInd Bank
When it comes to their child’s education, most Indian families prioritize it above all other needs, making sure their child receives the best possible education. This is largely because education is an intangible asset and an instrument of social and economic upward mobility.
However higher education in technical fields, such as medicine and engineering, or any type of higher studies overseas can be expensive. Most middle-class families find it difficult to afford the steep fees of the best higher educational institutes, let alone pay for other expenses such as books and accommodation. While the brightest students are able to obtain a 100% scholarship, not everyone is as lucky.
Under such circumstances, many parents, instead of asking their children to give up their aspirations, decide to take out a loan to meet the expenses. Is this a wise decision? Read on to know more.
A Loan for Higher Education – Good Debt
Interestingly, not all debt is necessarily bad. A loan taken out for higher education is a classic example of ‘good debt’ i.e. one that has the potential to improve an individual’s life or that of their family. Borrowing for obtaining higher education is akin to investing in an asset – a good education increases an individual’s lifetime earning potential. In contrast, bad debt refers to borrowing for the purpose of buying depreciating assets such as clothes, cars, and most other consumer goods.
Why Choose a Personal Loan for Higher Education?
When students or parents begin to consider a loan for higher education, the first natural choice is an education loan. Many, however, are ineligible for one reason or another, such as a lack of a guarantor or co-borrower or insufficient collateral. A personal loan for education is the next best feasible option in such cases.
Here are a few cogent reasons why a personal loan for higher education is a good idea:
No end-use restrictions:
With no end-use restriction, a personal loan for education may well be used to fulfil an array of needs such as accommodation, travel by flight, and external coaching among others.
No Collateral, No Guarantor:
A personal loan is a collateral-free loan. What’s more, no guarantor is required for availing the loan.
High Loan Amount:
The personal loan amount is typically sanctioned to an applicant on the basis of their repayment capacity and other criteria. Those with adequate repayment capacity may easily avail a higher personal loan amount.
No Margin Money:
Unlike an education loan, there is no margin money to be paid in the case of a personal loan.
IndusInd Bank Personal Loan for Education – The Best Bet
A personal loan from IndusInd Bank is a great way to fund higher education. The table below details the salient features of an IndusInd Bank personal loan and why it makes sense to avail of one for educational purposes:
| Rate of Interest | Repayment Tenure | Features | Process |
| Personal loan interest rates at IndusInd Bank are attractive, making sure the loan is affordable. | The repayment tenure is flexible ranging from 1 year to 4 years. Pay back as per your comfort and convenience. | Attractive features include low processing fee and no hassle of providing a guarantor or furnishing a collateral. | The application process is 100% transparent & digital, entailing merely 4 online steps. No physical documentation is required and the approval process is instant, ensuring swift processing & speedy disbursal of funds. |
Allowing your child to acquire quality higher education is probably the best gift you can give him/her. A good education lays the foundation of a great career, ensuring progress in all spheres of life for the individual and their family. In that, a personal loan for education is an investment in your child’s future – one that is sure to yield handsome
returns! Apply Now!
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
