Vellore: Over the last few years, great industry exposure, better job prospects, and fantastic opportunities have caused a sharp increase in the number of Indian students crossing the shores to study.
Additionally, statistics show that the cost of higher education has been on an upswing. In 2018, Forbes reported that in the US, higher education expenses were rising nearly 8 times faster than employee wages. The situation is similar in India too, with education costs clocking an approximate cost appreciation of 15% per year, on average. To manage the expenses involved, the conventional approach is to take a student loan.
While the conventional option helps you cover tuition fees and the basic expenses of your education, consider financing your course abroad with a Bajaj Finserv Personal Loan for Higher Education. Here are several reasons why personal loans are gaining popularity today.
1. It has easy to meet eligibility criteria
To obtain financing from Bajaj Finserv, you can count on your financial profile and steady income for approval. The criteria are not academic-specific, as is often the case with a student loan and you can use the funds for any course, be it for baking or aeronautical engineering. On the other hand, to obtain a student loan you are often required to pursue a professional course, which means picking a course that is job-oriented.
2. You enjoy a large, collateral-free sanction
Reports show that the student loan market has declined by 25% in the last four years and that lenders are now keen on offering these loans to a select few. Furthermore, in most cases, student loans above Rs.7.5 lakh require you to pledge a collateral. With the average cost of a course running into lakhs, this may not be a viable solution. Bajaj Finserv’s Personal Loan for Higher Education offers financing of up to Rs.25 lakh on a collateral-free basis, making it a more convenient pick.
3. You have access to funds for core and ancillary expenses
When you avail a personal loan from Bajaj Finserv, you enjoy restriction-free usage of the funds. This means that you can use the amount for all costs, be it tuition fees, accommodation, travel or other ancillary expenses. Further, the finances are disbursed to your account within 24 hours, with approval in just 5 minutes. In comparison, student loan financing typically covers the tuition fee, in part or in full, and may be disbursed to the institution directly in periodic instalments. This still leaves you with the hassle of financing other living expenses.
4. You can repay the loan over a comfortable, flexible tenor
While a Personal Loan does not offer a moratorium period like a student loan, you can split repayment over a flexible tenor that ranges up to 60 months and plan for it using an EMI calculator. In a certain sense, this is a safer alternative as compared to a student loan, as you are required to plan for repayment based on your current capacity and not future earnings. This reduces uncertainty and eliminates the possibility of default.
5. The flexi loan facility offers convenience and added affordability
Bajaj Finserv’s Flexi Loan facility can be conveniently used for unforeseen expenses like unexpected healthcare costs, transit, visa, and future exam costs. It allows you to borrow from your sanction in parts, as and when you need to, and limits your interest on the amount withdrawn. Moreover, it helps you lower your EMIs by up to 45%*.
Best of all, you can obtain a personal loan for higher education in no time at all. You can simply check your pre-approved offer and access financing on customised terms to pay for your child’s higher education, without any compromise.