4 reasons why an unsecured education loan is the best

 Do you want to study beyond your schooling years?

Do you have money to undertake that challenge and fund your higher studies?

 

If your answer is yes to the first question and no to the next, this blog is for you. Education loans finance every aspect of higher education costs of students—be it in India or abroad. Some students pledge some of their financial assets as security against education loan amounts they borrow, while others do not do so. The education loan for which a student does not have to secure their assets as collateral is called an unsecured education loan. This type of loan is better than other types of loans as students have very little of their interests at stake when they use such loans. In this blog, we will give you 4 reasons why unsecured education loans are the best.

 

1.     Complete financing with no upper limit on the principal amount

An unsecured education loan covers the higher education costs totally. It covers the course tuition fees and the traveling, living, and other expenses that a student may incur when they travel to a different city from their hometown for higher studies. The lender does not expect a student to pay a small part of these costs from their pocket. In other words, they do not expect the student to pay margin money. And they provide all of these benefits with no upper limit on the principal amount of the education loan.

 

2.     The best option for students who do not have significant financial assets

Many students prove their merit by performing well in school exams, extra-curricular activities, and entrance exams. Their mark sheets prove that fact. But more often than not, such students do not have enough assets to cover the overall costs of their higher education. An unsecured education loan is the best choice for students who do not have money to pay the cost of their higher education.

 

3.     Beneficial for students who do not have or are ineligible to get scholarships

Sometimes, students, even though they possess merit, are not eligible to get scholarships or miss getting scholarships by a small margin of scores. Such students have a saviour. An unsecured education loan is beneficial for a student who loses out on the chance to get a scholarship to funda part of or their whole higher education.

 

4.     No risk of forfeituring financial assets

A student who takes a secured education loan has to repay it by liquidating their secured assets if they default on repaying the said loan. But when a student takes an unsecured education loan, their assets are safe from being confiscated. In other words, there is no risk of forfeiture of their financial assets. This does not mean that a student does not have to repay the education loan. A student has to tow the responsibility of repaying their unsecured education loan.

 

So, these are the 4 reasons why an unsecured education loan is the best to fund higher education. Have a nice day!