Personal Loans vs Education Loans

Personal Loan can be taken in for any kind of purpose. Although most of the people take in personal loan as a business loan, but according to a survey conduct by IIMT, most youngsters take it as an education loan.

Let us view the difference between taking loan as in the form of personal loan or education loan:

• As in the case of personal loan - repayment of both the Principal Amount and the Interest begin just as immediately as you take it. Whereas, in case of education loan you start paying the principal amount and the interest after you have finished your education and have started working. Hence, from your salary you pay the same.
• Personal Loans always have higher ROI.
• For Loan tenure for Personal Loan is lower as compared to education loan as it varies from 1-5 years for tenure period.
• Although Personal Loan can be used as an education loan, but the cost and the repayment requirement as not as beneficial as that of an education loan.

Hence, it is advisable to take education loan as it is and not as a personal loan otherwise you might not be able to avail the fringe benefits attached with it.