Education and Career Forum

Hello sir, I want to apply for an education loan for my higher studies. Please tell me an education loan will fall in a secured or unsecured loan? What is the basic different between them?

An education loan will fall under an unsecured loan. As per your query I have differentiated between secured and unsecured loan.

A secured loan takes longer time in getting the loan sanctioned but, still a number of people avail this type of loan. Loans on secured credit promises low interest rates, flexible repayment terms and most importantly a choice from different interest plans. A secured loan can be taken by people by securing any asset.

Unsecured loan does not have any kind of security. Because the rate of interest is probably higher and if people have poor credit rating it will become difficult for them to pay. An unsecured education loan has vast customers because of its no security bond. The terms and conditions are quite strict in unsecured personal loan. Late payments are not allowed, if any payment is missed there are negative effects on the borrower's credit scores. The absence of security makes the application very smooth and fast.