When to Use a Personal loan for Education

Tertiary education is like a stepping stone or lever to your career. If you want a promotion, better pay, or race to that managerial position, a degree, perhaps several, masters, or a more advanced accreditation might be your channel. But paying for tertiary education requires a lot of money. Even when you want to acquire some specific additional skills, such as undertaking a 10-week marketing course or learning coding in Android and iOS, it can set you back around S$5,000 and S$15,000, respectively. 

One of the methods you can use to fund the education is using a personal loan, but it should not be the first option. As a Singaporean, if you qualify for an education loan, that would be the best option. Only go for a personal loan to fund your tertiary education in the following situations:

 

 When to Use a Personal loan for Education

 

When You Fail to Qualify for Education Loan 

The first option when you think of funding education in Singapore should be education loans because they come with very impressive terms and conditions. However, most loans require an annual income of S$24,000-S$30,000 and an age of more than 21 years. If you do not meet these requirements, the alternative is getting a guarantor who meets them. For those who find it impossible to meet the requirements, the best alternative is using a personal loan

Note that, unlike education loans that allow you to start paying after completing education, personal loans require one to start paying immediately. A personal loan is also likely to have a higher interest rate than an education loan in Singapore.

 

If Your Course Does Not Qualify for an Education Loan 

Once an education loan is approved, it is disbursed only to the institution where you will be taking the studies. This implies that if your course is not offered by an approved college, the chances are that the loan will not be approved. In such a situation, a personal loan in Singapore would come in handy. 

 

 When to Use a Personal loan for Education

 

The Limit on Your Education has Already Been Exhausted 

Before considering an education loan, it is prudent to start by determining how much you need. For example, in addition to the tuition fees, you will still need cash to pay for books, transport, and research. So, work out on a budget and if it exceeds the amount offered as education loan in Singapore, consider supplementing it with a personal loan. 

 

The Best Way to Apply for a Personal Loan

Now that you have seen the instances where a personal loan would be appropriate, how exactly do you apply for one? The large number of lenders in Singapore can make applying for a personal loan challenging. Imagine having to review tens or hundreds of lenders to identify the one with better terms. It can be a major challenge, but you do not have to go that route. Instead, you should use loan comparison sites, such as Lendela. 

With Lendela, the process of applying for a loan is so simple. Here are the three short steps to follow: 

  • Visit Lendela website and fill a short application.
  • Get offers from different lenders. 
  • Pick the most preferred one and Lendela books you an appointment. 
  • Sign the loan agreement, and the cash is deposited in your account. 

As you can see, a personal loan in Singapore can come in handy to help fund your education if other more preferable options, such as the education loans, are unavailable or off-limits. Make sure to pick the loan with the best terms by working with Lendela. You should also plan to repay the loan for the entire term. 

 

When to Use a Personal loan for Education is a feature post

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