Recently, one of my friends asked me, can I use a personal loan for school? I informed her, you can use a personal loan to fund educational expenses in India. But there are important trade-offs. These loans offer flexibility. It allows you to pay tuition, living costs, gadgets, or travel without restrictions.
Is It Allowed to Use a Personal Loan for education?
Yes. Tuition, books, laptops, and other educational costs can all be covered by personal loans. Unlike standard education loans, they don’t require collateral or a co-applicant in many cases, and the application process is fast with minimal paperwork.
However, interest rates on personal loans are higher. It is often between 11% to 18% per annum. However, dedicated education loans typically offer lower rates (8% to 13%) with moratorium periods.
Education loans may also provide repayment holidays during the course duration and tax benefits under Section 80(E). Moreover, a personal loan begins repayment immediately.
If your requirement is only the fee, it's better to go with an education loan as it starts after your study completes, and the interest rates are lower for it. A personal loan is a quick, no-collateral solution that gives freedom in fund usage. It’s ideal if you need money fast and want flexibility.
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Can I Use a Personal Loan for School?
akash
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12 days
2025-06-17T12:12:49+00:00 2025-06-17T12:12:50+00:00Comment
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