Due to increasing competition and hyperinflation, many students planning to study abroad are seeking education loans. Parents would invest in their child’s education from their savings in earlier times. But the growing trend shows that parents also admire the concept of taking education loans for their children.
With the increasing cost of higher education overseas, education loans have become an easy way to finance higher education. The RBI has introduced specialized education and study loans available at various financial institutions. And among these, the Gold Loan for Education is used by most students because of its multiple benefits.
This article discusses the reasons for choosing a gold loan and its advantages for higher education.
Advantages of Financing Your Overseas Education with a Gold Loan
Choosing a gold loan for studying abroad can be a smart decision, as there are multiple gold loan benefits, some of which are:
- Simple Eligibility Criteria
Getting a gold loan is easy because the eligibility criteria are lenient and inclusive, allowing anyone to take a loan against gold assets. You don’t have to provide a long list of documents or prove your credibility, making the loan process simpler and easier for borrowers. Therefore, choosing a gold loan is a straightforward way to get funds for higher education.
- Complete Coverage of Expenses
A gold loan for education helps you cover campus expenses and those off campus as well. It includes accommodation, food, travel, books, and shopping. The traditional education loan does not provide these benefits, as the funds are only used for tuition.
- No High Credit Required
Your credit score is not measured while taking the gold loan. You can get funded easily by providing gold, not other collateral.
- No limitations to courses
Most financial institutions provide education loans for specific courses and offer loans only to renowned colleges. However, Gold Loan is not bound to some particular courses, and you can easily take loans for the courses of your choice.
- Partially covers education Fees
The amount of loan you can get is based on the value of the jewelry you use as collateral. So you can adjust the loan amount according to your needs. You can easily apply for the necessary amount if you only need financial assistance for some of your course expenses.
- Increasing Gold Price
You can get more funds for a loan by using gold as collateral when the price of gold is high. The amount you can borrow will depend on your gold’s worth.
- Flexible Repayment
You can choose the repayment tenure as per your preference. Apart from the typical EMI payment scheme, you can select bullet or interest EMI alternatives. You calculate the gold loan EMI by using a gold loan calculator.
- Instant Approval
You do not have to go through a long paperwork process to get an education loan on gold. It requires only the gold you pledge, and you can get the loan instantly within a few hours or days, depending on the lender.
- No Processing Fee
You can process and avail of the loan at zero processing or application fees. However, in rare cases, some lenders may charge 2.5% for applying for a gold loan for education.
- No Prepayment Penalty
You can close the loan by repaying all the debts without paying any prepayment penalties.
- Minimum Documentation
Applying for a gold loan, whether online or offline, is hassle-free and requires minimal documentation. You can even secure a loan for overseas education without providing college acceptance documents.
- No End Restrictions
There are no restrictions on using gold loans, including for educational purposes.
Conclusion
With all the information mentioned above, you can make the right decision to take the gold loan for overseas education in a very affordable way. It allows you to take a loan at very low interest, cover all your financial needs on or off campus, and repay it easily. IIFL Finance is a top provider of gold loans, serving millions of happy customers. IIFL Finance provides gold loans with reasonable interest rates, and the loan application process is hassle-free.
