4 benefits of unsecured education loans

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4 benefits of unsecured education loans
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• Education loans have helped millions of students
  to study at reputed educational institutes in the
  world. They have garnered exemplary esteem for
  aiding students in their quest to gain quality
  higher education. Education loans have become
  even more accessible in the last few decades.
  Students who do not have financial assets to
  pledge them as security against their education
  loans have a tough time while funding their
  higher education. Fortunately, financial lenders
  offer unsecured education loans to such students.
  This proves to be very helpful for students who
  are unable to pledge collateral.
• To understand more about loans without
  collateral, let us look at 4 very important
  benefits of taking such type of loans

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Suitable for students who do not have any
financial assets

• Unsecured education loans are a boon for students
  who do not have financial assets to secure them
  against their education loans. Students who have
  financial assets but do not want to pledge them
  as securities against their education loans can
  get unsecured education loans to fund their
  higher education as well. Once their education is
  complete, they can repay the education loans
  through EMIs.
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Suitable for students who missed or are
ineligible for scholarships

• Meritorious students miss out on opportunities to
  fund their higher education through scholarships
  either because of being ineligible to get them,
  or because of displaying fractionally less merit
  than the required threshold. Unsecured education
  loans help such students to study the course of
  their choice, by filling up the financial void
  created by ungotten scholarships.

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Employs no risk of forfeiture of financial assets

• What if the student does have financial assets
  that they can pledge as security to get an
  education loan? Let us say they do that and
  unfortunately face certain problems because of
  which they face difficulties in paying back the
  monthly installments of their loans. This would
  mean that they would start defaulting on their
  loan. They would also risk losing their financial
  assets, something which could prove to be a
  serious blow. This is why going for a unsecured
  loan is much better as you do not have to provide
  any kind of collateral.

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Complete education financing up to a cap limit of
Rs. 40 lakhs

• Financial lenders offer unsecured study loans
  that cover 100 percent of the students higher
  education expenses. Some NBFCs offer to cover
  education costs up to as much as Rs. 40 lakhs.
  Students should consider this amount as a boon to
  fund all their higher education-related expenses
  like the course tuition fee, travelling expenses,
  lodging and boarding expenses, mess expenses,
  exam fee, library fee, laboratory fee, book
  expenses, stationery expenses, and so on.

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• So, these are the 4 benefits of getting an
  unsecured education loan for your further
  studies. Note that unsecured education loans have
  a higher interest rate levied on them as compared
  to secured education loans of the same amount.
  Please consult a higher education counsellor
  while planning your higher studies, and a
  financial advisor while planning its finances.
  All the best!

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• We hope this article was helpful to you.