Considering a personal loan for higher education? Here are its advantages and disadvantages
For the student (applicant): For the co-applicant/guarantor (if applicable): The maximum amount you can obtain for a personal loan varies and isn't determined by a single factor. Lenders assess your ability to repay the loan based on various criteria.
Here are the typical factors that influence the maximum loan amount: - Your income - Credit score - Employment track record - Debt-to-Income (DTI) ratio, and - Intended purpose of the loan Many banks typically offer a repayment period of five to seven years for personal loans, with some extending up to 5 to 10 years. However, the repayment tenure can vary depending on the borrower's financial situation, with some lenders providing shorter or longer durations.
Personal loans for educational purposes typically cover significant expenses including tuition fees, accommodation costs, living expenses, laptop expenses, two-wheeler charges, and more. Additionally, since the funds can be deposited into a personal savings account, there is greater flexibility in using the money for various types of expenses, especially abroad.
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