Personal loan vs Education loan – Which is better to aid your higher studies?

Higher studies both in India and abroad can be an expensive affair. Therefore, most students today rely on loans to finance their studies. However, the question might arise as to which is better – a personal loan or an education loan. There are many financial institutions that offer personal loans for students. Let’s look at these pointers in detail.

Personal Loan vs Education Loan – which is better to aid your higher studies?

When considering whether a personal loan or an education loan is better to aid your higher studies, there are several factors to consider. Let’s explore the differences between the two options:


An education loan is specifically designed to finance educational expenses, such as tuition fees, books, accommodation, and other related costs. On the other hand, a personal loan can be used for any purpose, including education but also for other personal needs like debt consolidation, medical expenses, or home renovations.

Interest Rates

Generally, education loans have lower interest rates compared to personal loans. This is because education loans are often subsidized or offered by financial institutions with a focus on supporting education. Personal loans, on the other hand, are usually unsecured loans and therefore carry higher interest rates since they pose a higher risk to the lender.

Repayment Terms

Education loans often have flexible repayment terms that consider the borrower’s financial circumstances during the study period. Repayment typically begins after the completion of the course or a grace period. Personal loans usually have fixed repayment terms, and the repayment begins immediately after disbursal.

Loan Amount

Education loans are usually designed to cover the entire or a significant portion of your educational expenses. The loan amount depends on the course, institution, and other factors. Personal loans may have limits based on your income, credit history, and other financial factors, and the loan amount may be lower compared to education loans.


Education loans may require specific documentation related to the educational institution, course, and other academic details. Personal loans generally have fewer specific requirements and are relatively easier to obtain.

Considering these factors, an education loan is often a better choice for financing higher studies. It provides dedicated funding for education-related expenses, often offers lower interest rates, and may have more favorable repayment terms.

However, personal loans can be a viable alternative if you are unable to secure an education loan or if you need additional funds beyond what an education loan covers. Airtel loan can help you get a personal loan at low-interest rates. In any case, it’s important to carefully consider your financial situation, compare the terms and conditions of different loans, and choose the option that best suits your needs.

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