Education Loan V/S Personal Loan: Where To Bet To Fund Your Higher Studies

If you are looking for funds for higher education, you have two main options – an education loan or a personal loan.

But which is better?

Let’s decode.

Loan amount

Personal loans are based on your income while education loans cover the tuition fee. As such, you can get a higher loan from the latter option.

Interest rate

Education loans can prove cheaper compared to personal loans. As such, you can save on loan repayment when you choose education loans.

Collateral

Personal loans are unsecured and do not require any collateral but in education loans of higher amounts, collateral is needed.

Tax benefits

There are no tax benefits with personal loans. In education loans, you can claim the interest expense as a deduction under Section 80E.

Moratorium

No repayment holiday is allowed under personal loans but education loans allow the facility wherein loan repayment starts after course completion.

Education loans are better for higher education and by choosing IDFC FIRST Bank, you get collateral-free loans up to Rs.50 lakhs at attractive rates.