Clix > Personal > Reasons to Take a Personal Loan for Education Rather Than Self-Financing

Reasons to Take a Personal Loan for Education Rather Than Self-Financing

Clix April 8, 2021

 

Quality education is a crucial part of a successful life and career. However, education costs are rising rapidly and you need to save a hefty amount of money to get an education in your preferred course and institute. But despite your efforts, if you are still facing a financial crunch, a personal loan for education can be your best solution to meet the expenses related to your expensive education. You can use your loan amount to finance your course-related expenses, including books & supplies, mess and hostel charges, travel expenses, course fees, accommodation, and others.

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Whether you are looking forward to pursuing education in India or abroad, considering taking a personal loan is more beneficial than self-financing due to many aspects. Here you will come to know why.

Take Personal Loan for Education

Easy Availability

These days, many financial institutions offer personal loans for education. Applying for these loans is extremely easy. Lenders consider only a few factors while approving personal loans, including the applicant’s age, income, and employment. Once you apply for a personal loan for education, just provide a few details and get your documents verified online. If everything goes fine, you can get your loan approval within 15 minutes*.

To apply for Clix Capital’s personal loan for education, you just need to meet the following eligibility conditions:

    • You must be between 25 and 58 years of age
    • You must have a salaried job of at least ₹ 25,000 per month
    • You must be working with the current employer for at least 6 months, and have a total work experience of at least 12 months

 

If you are eligible to apply for their loan, these are the only documents you have to be ready with:

    • Duly filled online application form
    • Recent passport size photograph
    • Identity proof like Aadhaar card or Pan card, or government ID for government employees
    • Address proof like Aadhaar card, voter ID, passport, driving license, etc.
    • Income proof, including your last month’s payslip or current year’s Form 16

 

So, when you have easy availability of funds to finance your education, why use up your savings for the purpose.

No Collateral Required

Loans can be secured or unsecured. For a secured loan, you need to provide collateral which the lender can use to recover their loan amount. But for an unsecured loan like a personal loan for education, no such security is required. This means that you can have a personal loan of up to ₹ 25 lakhs without putting any asset at stake. On the other hand, if you decide to self-finance your education, you have to use up your savings or take a mortgage to pursue your desired course.

Ability to Repay Over Long Term

When you self-finance your education, you may have to pay for everything upfront, including the travel expenses, course fees, accommodation, etc. But when you take a personal loan for education, you get a lumpsum amount of up to ₹ 25 lakhs to make these expenses and pay it back at your convenience over a period of 12 to 48 months.

A personal loan EMI calculator helps you to calculate your EMIs and decide your loan tenure according to your income and repayment capacity. If you choose a longer loan term, your EMIs will be smaller, but your interest outgo by the end of the loan term will be high. Instead, if you opt for a shorter loan term, your EMI amount will be higher, but you will get rid of your debt sooner and you will end up paying much less on the interest amount. So, keep a balance between your income and EMIs while choosing your loan term. Why self-finance when you can easily take a loan and repay it at your convenience?

When they are short of money, many people decide to use up their savings or sell their assets (movable and immovable) to fund education in a top institute in India or abroad. Doing this can prevent you from creating wealth and meeting your short-term or long-term goals, such as building a house or buying a car. Hence, taking a personal loan for education eases off your burden and helps in keeping your savings and assets safe.

Preserves Dignity

If you have no savings or assets to use up for your education, you may decide to borrow from your friends or relatives. This may appear to be a good idea, but most often, it jeopardizes relations in case you delay or fail to repay the borrowed amount. Besides that, when you borrow from your acquaintances, they expect you to repay the amount in lump sum instead of installments. This further adds to your stress while you are learning or in the early years of earning.

Don’t allow financial constraints hold you back from education. With a personal loan for education from Clix Capital, you may help yourself in realizing your dreams. Apply for our personal loan now and get the needed finance with features like ample loan amount, flexible repayment terms, hassle-free application, and approval procedures.

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You can also reach out to us at hello@clix.capital or call us at 1800 200 9898

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