Types of Educat

Types of Education Loan

During the college admission process, Education Loan has become a new headache for the students as well as parents. It does not matter whatever the field of study is, nowadays due to high college fee education loan has become a culture in today's society. Earlier those people used to apply educational loan that belongs to technical courses like median and engineering but now Loan For Skill Development courses are also required.

There are several sources of loan available in the market including smaller state loan and govt loan. There are colleges providing loans and so on. Read this article to know how many types of loans are there in the market.

Central Government Loan

 The government loan is loan provided by the central govt. There are lots of positive perks of Government loans. It is usually provided to the students who are having low family income. The interest of this loan is lowest than any other type of loans available in the market or sometimes govt itself pays the interest of the loan. This loan is subsidized by the govt and there are chances of getting concession in the future if a person is availing government loan. There is a separate fund for the loans and scholarship provided by the central govt.

State Government Loan

It is another form of government loan where the state government provides the loan. There are no specific provisions for the subsidy of this loan, sometimes state govt provides subsidy sometimes they don’t it totally depends on the govt. State government loan is considered as a second best option if a person is applying for the educational loan. Although it is a very tough task to get any sort of govt loan whether it is central govt loan or state govt loan because of there some criteria’s like low-income level and many others. There are no chances that government is going to pay the interest like central govt loan.

Private Loans

In terms of facilities, parks or interest govt loans are always better than the loans provided by the private sector or private banks. Applying for the private loan is usually the last option left for the students. No doubt private loans have a higher interest rate with no subsidy and other features provided by both govt loans. It is absolutely inflexible if it is compared to the govt loans. Private loans are provided by various institutions like there private banks that providing private loans and they are considered best if a person is going for a private loan. Another kind of private loan is provided by the institutions itself though they are not scholarship. The most highlighted perk of getting a private loan is the customer service you get is really appreciatable. 

In today's educational environment where education is more expensive than purchasing a property demand and need of loan has been rapidly increasing day by day. It does not matter whether a person is applying for the Loan For Skill Development or technical course there is very tough competition for the govt loans and private loans are expensive.