Way to Finance Education fees

Ways to Pay Education Fees from Borrowed Funds:- 

1. Education loan, 
2. Personal loan 
3. Credit card. 


Interest rates

in all three are negotiable and vary across banks. It depends on the relationship of the customer with the bank.  However, credit card loan is likely to be the most expensive of the three. “Even though one can negotiate the rates, for every category of customer—be it regular payers, frequent payers or pure revolvers—the comparative interest rate on credit card loan will always be higher compared with personal loan and education loan. This is because such loans are unsecured and the risk for banks is high. Even a personal loan is unsecured but it scores over a credit card loan because of the process involved.

• The range of interest rates for education loans is 18-19%. 
• A personal loan can be availed at 13.50-20%.
• credit card loan can cost 18-24%. 

These rates vary across lenders and depend on the borrower’s track record.

Accessibility

For an education loan, there is collateral above a certain limit and guarantee by the parent. 

• For personal loan, there is lengthy documentation and approval process. 
• For a credit card, though there is credit limit, the user can use the card at her convenience and without prior approval.