What are the Ways to Get an Emergency Student Loan?
When you are pursuing a course or degree, there is always a constant need for funds. And the last thing you want is to deal with an unexpected financi...
Download our app to experience the most promising loan features at your fingertips. Click here
With the increase in the cost to study abroad and the rise in the number of students aspiring for such education, education loans have become a famous option to finance higher studies.
Students take the aid of education loans to support their quality education dreams. Since it is hard to cover the expenses of studying abroad through their savings alone, that’s where the need for education loans secured or unsecured comes in.
However, with so many types of loans and financing options available, it gets difficult to choose the right option among student loans secured or unsecured.
The two most common types of loans are secured and unsecured education loans. Secured loans require you to pledge collateral, while unsecured loans can be obtained without putting an asset at risk.
To know the best education loan option between secured vs unsecured student loans, keep on reading.
If you are wondering if an education loan is secured or unsecured, then know that there are both secured and unsecured education loans.
A secured loan is a loan that asks the applicant to pledge collateral in order to get a loan. The collateral or asset pledged against the loan serves as a guarantee of loan repayment, as the lender can keep the asset in case of default on payment. So if a student has an asset to provide as collateral, then there are high chances of getting a loan and that too, at lower interest rates. You can easily apply for a secured education loan online by providing the necessary details as required by the online lender.
An unsecured education loan does not include the requirement of collateral, which means the loan is sanctioned based on the eligibility of the applicant. In the case of an unsecured education loan, the creditworthiness, employability, and academic records of a student are assessed in order to decide and approve the loan amount. So the lender does not ask for assets as security, and therefore, unsecured loans are the option for you if you do not have an asset to pledge. However, the interest rates of unsecured loans are comparatively higher and there are lower chances of getting approved since the lender has to rely on your loan eligibility alone. So whether the education loan secured or unsecured, has its own benefits and drawbacks and the option to pick between the two relies on the student loan requirements.
Both education loans whether secured or unsecured are great options to provide for your higher education. They both offer flexible repayment terms and good interest rates. However, the major difference is that one requires collateral, while the other doesn’t. Also, there is a difference in the interest rates and other charges. The repayment terms and other fees largely depend on the lender that you select for your education loan.
The key differences between student loans secured or unsecured are listed below-
As we can see that both education loans secured or unsecured have their own merits and demerits, so it is hard to pick between the two. The right type of education loan for you is determined on the basis of your borrowing needs and repayment capacity.
For instance, if you have collateral to put up, then secured loans are your go-to option between student loans secured or unsecured. You can get a better interest rate and a larger loan amount with secured education loans. It is also easy to get approved for these loans, but the process may take some time.
However, there is a risk of losing the collateral if you default on payment. So make sure you have a repayment plan and capacity before you pick between secured vs unsecured student loans and take a secured education loan against collateral.
For unsecured loans, you do not have to provide any collateral and get the amount quickly disbursed into your account, provided you choose the right lender to get an unsecured loan. Even though unsecured loans come with a slightly higher interest rate, you can still get a good deal for education loans secured or unsecured if you associate with a legitimate online lender.
Also, the loan eligibility of the student is an important factor to determine the type of loan suitable for the requirements of an education loan, despite the fact that it is secured or unsecured. Every financial and lending institution has its eligibility criteria but the basic requirements for evaluating the eligibility for a student loan are:
The lender may also ask for additional information or more documents, depending on the case of the applicant for the education loan secured or unsecured.
There are many options to get student loans secured or unsecured such as private banks, public banks, NBFCs, and other lending institutions. The source you choose to fund your education also plays a critical role as it decides the loan terms, interest rates, etc. You form a long-term association with the lender of your education loan, so it is important that you pick a credible online lender to get a secured or unsecured education loan.
If you want to get Instant Education Loan Online, then reach out to Rupeezo to avail yourself of the best education loan offers.
A personal loan is a loan that can be availed by any individual and is used for
A business loan is a loan availed for meeting business purposes such as purchasi
A vehicle loan is offered to finance the purchase of a two-wheeler or four-wheel
A medical loan is a loan granted to cover the various medical expenses of the in
A wedding loan is a loan given to finance the various formalities and functions
An education loan is a loan offered to finance education expenses, such as unive
A travel loan is a type of personal loan that is granted to individuals to cover
You can apply for loans by clicking here.