Loans for upskilling are an excellent way to improve your skills and save money at the same time. The best part? It is easy to get an education loan in India. There are numerous benefits of taking loans for upskilling. Apart from learning new skills, you also can manage your finances in an organized manner. The other benefits are:
1. Bring Down the Interest Rates
Lower interest rates are charged on upskilling loans. In addition to that, women are offered an extra 0.5 per cent discount from banks and NBFCs on their education loans. Low-interest rates on your loans don’t make you feel the burden of loans. In fact, upskilling loans of Eduvanz are offered with zero to low-cost EMIs.
2. Pay After You Have Finished Your Course
One of the key benefits of upskilling loans is this. Education loan programs have a moratorium period, unlike personal loans, where the borrower is required to begin making payments on the accrued EMIs in the following months. The moratorium period allows you to pay the loan after your course is completed.
3. A Diverse Array of Expenses Are Taken Care of
Nearly all of the costs that a student can incur to finish their studies are covered by an upskilling or an education loan. Tuition, transport (tickets), housing, university fees, food, living expenses, a laptop, or any other equipment necessary for your studies can be included in your loan amount.
4. Subsidy For the Interest on Upskilling Loans
For the benefit of loan applicants who come from economically disadvantaged groups of society, the government of India has implemented a number of interest-subvention programs for education loans. The following list includes the subsidy plans.
- Subsidy for Padho Pardesh Education Loans
- Interest Subsidy for the Dr Ambedkar Central Sector Scheme
One benefit of these subsidy programs is the elimination of the interest on educational loans accrued during the moratorium period. However, these students must begin their own EMI payments after the moratorium period.
5. Increase Your CIBIL Score
The credit information report, or CIBIL, is a run-down of your credit history up until that point. The typical CIBIL score varies from 300 to 900. A good score is one that is over and above 750. Your CIBIL will benefit from your education loan since prompt EMI payments will increase your score and make it easier for you to secure future loans for a house or a vehicle.
6. It’s Not Necessary to Sell Off Valuable Property
Most often, parents sell assets to pay for college costs, which ultimately interferes with long-term financial objectives. When you apply for an education loan, banks use your liquid assets, such as government bonds, insurance, and FDs, as collateral and provide you with a loan in exchange. As a result, the loan you took out to pay for your schooling would not conflict with your long-term financial objectives.
Whether you are looking to upgrade your skills or just want to take a break from the daily grind, loans for upskilling may be just what you need. With competitive interest rates and flexible repayment options, an upskilling loan can help you save money and improve your skill sets in a cost-effective manner.