You might be an aspiring student who wants to apply for higher studies and score the best in the entrance exam. To achieve that good grade in the entrance exam, you wish to have a good coaching class that helps you live your dream. But the difficulty is, how will you pay the fees of the coaching classes which are sky touching. You need not worry. We got answers to your questions. All you need to do is apply for a special education loan.
Banks offering Coaching fee loans:
Loans given for paying the coaching classes fees are called coaching fee loans. These coaching fee loans are given to the guardian or parents or the caretakers of the student, to get into the coaching classes they wish to go for. Coaching classes are now becoming more and more expensive. The banks have started with coaching fee loans to help students deal with it. All the banks do not provide these loans. The public sector and central banks are the only ones providing these loans. You can also take personal loans and use them for your education.
For which courses you can apply:
To apply for coaching fee loans, you must ensure that the coaching classes are reputable and have been in the business for quite some time. Coaching fee loans are available for courses such as JEE, CAT, GMAT, GATE, GRE, CAT, CS, AIEEE, PMT and UPSC, and more. Banks may not have a guideline saying that coaching classes must be reputed, but it’s always better if it’s reputed.
Interest rate:
A coaching fee loan’s interest rate is usually less than a personal loan. Personal loans have a higher rate of interest and which is why it’s advisable to go for coaching fee loans than private loans. These coaching fee loans are usually short-term loans and charge lower interest rates. Besides that, you can negotiate the rate of interest by keeping collateral. However, if you have an unsecured loan, you must offer a third-party guarantee. Maintaining security will increase the chances of getting loans at a cheaper interest rate.
Credit card v/s Coaching fee loans:
You can also pay your coaching fees with the help of a credit card. You might get instant money by paying with a credit card, and you can then pay your coaching classes fees. But is credit as good as coaching fees? There is no doubt that coaching fees will have more formalities than credit cards, but if you want to pay a low-interest rate and don’t want to be drilling a hole in a pocket, you must go for a coaching fee loan. You have to face a few formalities, and also, the coaching fees loan will not be given in the hands of the student. It will be given to relatives, family members or guardians, or caretakers of the student. So if you are looking for a cheaper rate of interest loan, you should opt for coaching fee loans.
The bottom line:
Coaching fee is advisable for those students who want to become professionals and aspire to study higher but cannot pay tuition fees. Coaching fee loans help such students build a bridge for themselves andpaveg the way for higher studies. For more, check CA loans and professional loans. Check out Finserv MARKETS.
Source: https://www.firstpost.com/investing/cant-afford-to-pay-coaching-class-fees-avail-of-a-special-educational-loan-822627.html
