Loans for Parents
The parents are willing to provide a quality and higher education to their children but due to financial hurdles, they are unable to fund their children’s studies. In this case, they can avail an education loan for their children’s studies.
Features:
- Parental Responsibility: Parents of students can avail of this type of loan for their children’s studies. Parents are completely responsible for repaying the loan amount.
- Higher Loan Limits: Generally this type of loan provides a higher loan amount to the students.
- Credit-Based: This loan is a credit-based loan. This loan is provided on the basis of the creditworthiness of the parent borrower.
Advantages:
- Flexible Repayment Option: Parents will get a flexible repayment option. They can repay the loan amount in a flexible way.
- Lower Interest Rate: This type of loan is provided at lower interest rates rather than other loans such as personal loans or credit cards.
- No Cosigner Required: No cosigner is required to get the loan as parents are the primary borrower.
Disadvantages:
- Impact on Parent’s Credit: If parents can not repay the loan amount in time, then this can impact a negative on the parent’s credit score.
- Limited financial Aid: As this loan is provided to the parents, so parents will not avail to get another loan due to the previous loan.
- Responsibility: Parents are directly responsible for repaying the loan amount even if the students will not complete their course or education.
Types of Education Loan
Education loans are very important in the perspective of students’ studies, especially for the students who are willing to study higher education. Education loan is often called student loans. There are various types of education loans available in India. In this article, we will learn about education loans along with the various types of education loans and their brief discussion.
Table of Content
- What is an Education Loan?
- Types of Education Loan
- 1. Education Loans Based on Location
- 2. Education Loans Based on the Course of Education
- 3. Education Loans Based on the Security of Collaterals and/or Guarantee
- 4. Loans for Parents
- Features & Benefits of Education Loan
- List of Expenses Covered in Education Loan
- Best Education Loan in 2024
- Conclusion
- FAQs – Types of Education Loan