Published on December 6th, 2019 | by Sunit Nandi0
5 Reasons to Consider Personal Loan for Career Boost
In a time when financing every other big event in life needs sizeable funds, a personal loan can turn out to be a feasible instrument. In the past few years, personal loan disbursement has gained a tempo, and some financial institutions even disburse it within a few minutes of receiving an application. It can be directed towards any necessity like wedding expenses, purchasing a home, medical emergency, lavish vacation, career-oriented plans, etc.
In the absence of an end purpose, and no additional requirement for collateral, the personal loan has become a lucrative option for financing various conditions. Many students now prefer personal loans above educational loans to finance their studies. If you are planning a career boost then here are a few reasons how a personal loan can help you in filling colors to your dream.
Here is how a personal loan can give a boost to your career plans:
If you have decided to go for higher studies and consider opting for a personal loan, then these few things can help sort your financial journey and give a boost to your career plans.
- The loan amount can be used for any purpose: We all know that in a personal loan, there is no end purpose regarding the usage of the loan. The loan procured can be utilized for the educational course fee and additional expenses related to the accommodation and fooding of the student with his family, relocation expenses, and traveling cost. This is, however, not offered in an educational loan where the money can only be used for the fees structure of the educational course.
- No requirement for co-applicant and guarantor: Unlike an educational loan where a student initially needs a co-applicant like parents or spouse to avail a loan, there is no such need in a personal loan. A student can apply for this loan individually as there no such criterion. Additionally, if the loan amount crosses the limit of INR 4 lakhs, a student needs to arrange a guarantor for getting the loan amount sanctioned. This makes it a bit complicated, but a personal loan can be taken in any amount, and there is no need to compromise your educational dreams in the absence of a guarantor.
- Collateral free: A personal loan falls under the category of an unsecured loan which means there is no need to pledge assets or collateral to get the loan. Without taking any unnecessary burden, a student can easily opt for this loan for their expensive higher study courses. However, in an educational loan, if the loan amount exceeds INR 7.5 lakhs, a student needs to produce collateral to avail a loan.
- Refinancing educational loan with a personal loan: A student can also take an education loan at the first instance and later on refinance it with a personal loan. It also has benefits for the student as with refinancing; the interest rate gets considerably reduced. This happens typically after the completion of the course as the student reaches a better position depending upon his career prospects to decide about refinancing the existing secured loan with an unsecured loan.
- Availability of many credential lenders: Besides, a personal loan is readily available as there are so many credential lending institutions in the market. With minimum requirements, the loans get easily sanctioned. However, in an educational loan, a student needs to fulfill certain criteria, which makes the loan disbursement process slow.
Some additional tips that can be helpful in choosing the best personal loan
- Selecting a lender: Whenever you shop around for a personal loan, you might receive exceptional alluring offers from different banks and NBFCs with low-interest rates. However, there is no need to fall for such proposals in the first instance. Study the market properly before applying for a personal loan.
- Avoid applying at multiple lenders: Also shopping for a personal loan can prove counterproductive in case you pay a visit and apply to multiple lenders. When every lender gets access to your credit history, it will reflect you as a credit hungry person taking a beating at the credit scores. It is better to check and compare the interest rate on personal loans from websites before finally applying for it. Search online to know more about personal loan.
- Check all the charges: A personal loan typically comes with a processing fee though some lenders can add hidden charges as well. Also, there are foreclosure charges included in a personal loan. In case the tenure is longer, that is more than two-three years and the student can anticipate a steady flow of cash, then he is advised to opt for a personal loan with lower foreclosure charges.
These are some of the things; a student must keep in his mind before selecting a personal loan, for giving a boost to his career. Besides, good credit history and a minimum gap of six months will make the situation more favorable while opting for a personal loan.