Search Suggestions
- Gold Loan
- Money Transfer
- Mutual Funds
Should You Take A Gold Loan For Higher Education Expenses?
Every parent wants the best for his child and the same goes for education as well. A child works very hard to get into a premier institution. No parent would want their child’s dream to get over due to lack of finances. That’s the reason parents take the most obvious route of an education loan. What many people fail to learn and understand is that a student loan is an unsecured loan that attracts a high-interest rate. A large chunk of their income goes into servicing student loan EMIs. Apart from that, education loans had the highest non-performing assets among personal loans in the last financial year. Because of the high instances of default in such loans, most lenders have laid stringent conditions for customers wanting to apply for a student loan. So, is there a way out? There certainly is. Gold loans have emerged as one of the most popular tools to fulfill a child’s educational aspirations.
Challenges of Applying for a Student Loan
Many banks and NBFCs offer student loans. Although the eligibility criteria for different lenders could vary slightly, there’s no denying that the process is tedious and the conditions are difficult to comply with.
-
Education loans are granted to only those students who have been accepted by recognized colleges and universities.
-
For students seeking international admission, only Ivy League colleges or their equivalent are considered for education loan interest rate subsidies.
-
Student loans only cover tuition fees, and additional university or college charges. Other essential expenditures such as medical expenses, travel and accommodation fees, food, etc. are not covered. These additional costs have to be borne out of pocket.
-
Since these loans are unsecured credit facilities, there’s a higher associated risk for lenders. This risk is mitigated by charging borrowers a high rate of interest.
-
Just like other unsecured loans such as personal loans, a student loan requires solid financial backing, good credit history, a high credit score, and fulfillment of other eligibility criteria.
With so many hurdles, applying for an education loan becomes an arduous task.
Alternative to Student Loans
What if we told you there’s an untapped asset that could be the perfect alternative to an education loan? Most Indian households have some gold in the form of gold jewelry, coins, bars, bullion, etc. A loan taken out against gold is one of the cheapest, fastest, and most convenient ways of securing financing for your child’s education. And you can complete the entire process from the comfort of your home. Many lenders such as Muthoot Finance not only offer the most attractive gold loan schemes but also provide online and doorstep gold loans. And all you need to do is to visit the lender’s website.
Why Choose a Gold Loan over an Education Loan?
Unlike a student loan, gold loans are secured loans in which physical gold articles are pledged as collateral. The entire process of applying for a gold loan is quick and hassle-free.
Here are some more reasons to consider gold loans as an alternative to education loans:
Feature | Benefit |
---|---|
Eligibility Criteria | Any adult resident Indian who is the rightful owner of the to-be-pledged gold items is eligible for a gold loan |
Flexibility | No requirement of the student to fulfill stringent criteria including the standing of the educational institution |
End-Use Restriction | There’s no restriction on how the gold loan amount is utilized. The amount can be used to fund tuition fees, living expenses, travelling etc. |
Credit History/Credit Score | Gold loan applications do not require the credit history or credit score of the borrower |
Loan Amount | Most lenders lend up to 75% of the gold value |
Ease of Documentation | Basic KYC, a simple application form and minimum documentation is required |
Interest Rates | When compared to unsecured loans like personal loans and student loans, the gold loan interest rates are quite affordable |
Repayment Options | Gold loans come with flexible repayment options that the borrower can choose according to preference. |
Conclusion
The ease of a gold loan has spurred many parents to reconsider student loans. And why not? New-age gold loan companies like Muthoot Finance have enabled many borrowers to save their time, effort, and money.
- Avail gold loan
- Calculate Gold Loan
- Check Gold rate today
- Gold Loan Eligibility
- Interest Rate
- Gold Loan Scheme
- Custom Offers
CATEGORIES
OUR SERVICES
-
Gold Loan
-
Gold Loan@Home
-
Housing Finance
-
Personal Loan
-
Insurance
-
Custom Offers
-
Money Transfer
-
NCD
-
Mutual Funds
-
PAN Card
-
Micro Finance
-
Digital & Cashless
-
Vehicle Loan
-
Corporate Loan
-
SME Loan
-
Milligram Rewards
-
#Kholiye Khushiyon Ki Tijori
-
NPS
-
#Big Business Loan
-
#Gold Loan Mela
-
#Gold Loan At Home
-
#Sunherisoch
RECENT POSTS
7 Reasons Why Life Insurance is the Best Diwali Gift
Know MoreStep-by-Step Guide to Getting a Vehicle Loan this Diwali
Know MoreImpact of Your Credit Score on Vehicle Loan Rates
Know MorePersonal Loan Rejected? Try These Alternatives
Know MoreWhy is the Festive Season the Best Time to Get a Vehicle Loan?
Know MoreSecret Tax Benefits of Personal Loans You Didn't Know About
Know MoreTop Benefits of Taking a Personal Loan During the Festive Season
Know MoreTop Mistakes to Avoid When Choosing Health Insurance
Know MoreFacing Gold Loan Repayment Problems? Explore More Options
Know More10 Reasons to Choose a Gold Loan This Festive Season
Know MoreFIN SHORTS
What Is the Muthoot Mudra Loan Scheme
Know MoreWhat Is a Doorstep Gold Loan Service?
Know MoreWhat Documents Are Required to Get a Gold Loan?
Know MoreWhat Are the New Rules to Take a Gold Loan in India?
Know MoreWhat Are the Different Types of Mutual Funds?
Know MoreHow to Check Cibil Score?
Know MoreHow to Invest in Mutual Funds?
Know MoreHow to Buy Stocks in India?
Know MoreHow to Activate your UAN number?
Know MoreHow to Withdraw PF Amount?
Know MoreWhat Is The Process Of Gold Loan Auction?
Know MoreHow to apply Gold Loan Online?
Know MoreFAQs
- South +91 99469 01212
- North 1800 313 1212