Higher education in India can become quite an expensive prospect. Particularly if parents contemplate sending their wards to Ivy League colleges, they would require external financial assistance.
Most commonly, parents opt for a higher education loan, or Personal Loans to fund overseas education to meet these expenses. However, in the long run, these loans might become difficult to repay. Therefore, for repaying student loans as well, borrowers might require additional support.
People who have opted for a student loan might consider borrowing a Personal Loan to pay off their debt. This financing method has considerable positives because of which it is a preferred option to repay student loan debts.
-
Affordable interest rates
Personal Loan interest rates are competitive. Furthermore, if students can provide proof of stable future income, then lenders can allow them the benefit of even lower interest rates.
Also, if financial institutions have evidence of the credibility of the parents by virtue of their CIBIL rating, then they can offer a benefit of negotiation. Meaning, guardians can have better interest rates if they opt for Personal Loans to settle a higher education loan.
-
Debt consolidation
In case one has availed multiple student loans, then a Personal Loan is an effective choice of repayment. Borrowers have the advantage of bringing all their debts under one common roof when they opt for Personal Loans.
Furthermore, debt consolidation by Personal Loans allows individuals to improve their creditworthiness by increasing their overall CIBIL score. This is because debt consolidation enables them to reduce the number of debts owed. Reduction in debts leads to a consequent increase in a borrower’s credit rating.
-
Easy terms
Prospects choosing to apply for Personal Loan to repay student debts can avail these funds in simple terms. Therefore, these are far easy to manage than higher education loans.
Also, documents required for student loans are much more than Personal Loan documents. Minimal documentation for the latter, in turn, allows easy disbursal of loans within a shorter time frame.
Therefore, Personal Loans are much easier to avail to repay a higher education loan.
However, before opting for these loans, borrowers must know their Personal Loan eligibility. In other words, they must be sure about their ability to repay their loans when the tenure ends.
How can applicants be sure of their eligibility?
Assurance of repayment on the borrower’s part becomes even more crucial when he/she opts for a Personal Loan to repay student loans.
This is where an online loan calculator can help. These calculators help applicants gain an insight into the prospective EMI repayments for various combinations of principal amounts and loan tenures.
Therefore, by using a Personal Loan EMI calculator, prospects can decide upon the principal amount and tenure that would be favorable for them to repay the loan.
Whom can prospects approach for Personal Loans?
Applicants might turn to lenders like Bajaj Finserv for these loans. Apart from minimal documentation, and lower processing time, such institutions also provide pre-approved offers. These offers simplify the procedure for disbursal of loans, which, in turns allow applicants to access their finances easily, saving time. These schemes are also applicable to business loans, home loans and EMI financing on various products.
Moreover, these loans come without the attachment of collaterals. Meaning, borrowers need not worry about losing their assets in cases of non-repayment. Also, since these loans are collateral-free, the time required for processing also decreases.
Therefore, when you opt for these loans to settle your student loan, you can use the fund as soon as possible. Hence, opting for a Personal Loan is the easiest way to repay a student loan.
