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Published on Oct 9, 2020Updated on Apr 10, 2025
As we have seen from recent trends, students these days are not only smart and talented but also willingly want to push themselves out of their comfort zone when it comes to Higher Education and wish to explore various options. Opting, for instance, for studying at a Foreign Institute is a common practice these days and can easily cost a huge sum. This is especially the case if, along with education fees, we take into account lodging / accommodation costs, day to day expenses, etc. The best way to make this dream come true is by taking a loan. Then the question arises, what sort of loan does one take? The most common question is - Education Loan Vs Personal Loan, which one to go for? Both of them have their own set of advantages and disadvantages. Let’s understand them in detail.
Must Read: 5 Steps to Get a Personal Loan for Online Courses in India
Must Read: How to Get a Personal Loan at the Best Interest Rate
From the above discussion, it’s clear that Education Loan Vs Personal Loan is a very important step before deciding what best suits our needs. As mentioned above, an education loan offers lower interest rates and flexibility on its repayment. The major cons would be the eligibility criteria. Thus, if the course / institution / your academic record does'nt match the requirement of an education loan, then you can go for.a personal loan instead. It is also very easy to apply for a personal loan online, as the personal loan documents as well as the process of application are simple to understand and hassle-free. However, do note that unlike education loans, personal loans may have higher interest rates and have to be repaid immediately every month as per the EMI schedule, and thus can only be availed by a parent / family member of the student.
* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us
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