Unsecured Student Loan

Hi I would like to know what an unsecured student loan is as well as the details of the same?

[Kiran Chandar]

Parents take education loan for their children to make them educated. Children below the age of 18 are not qualified to take a loan so their parents take education loan for their benefit.

An education loan is a means of assisting to pay for the rising tuition fees. Education loan is taken so that students can study as much as they desire, without any financial problems.

Educational loans are also known as student loan that is taken from a lender and are used to disburse for tuition and other expenses needed for college.

There are two types of education loans:
• Secured Education Loan.
• Unsecured Education Loan.


Unsecured Education Loan does not have any structure of security. So because of this cause the rate of interest will be probably higher

An unsecured education loan has enormous customers because of its no security bond. The absence of security makes the whole application process very smooth and fast.

Unsecured education loan has superior rates of interest than normal education loans but that is to be expected given that the lender is taking a larger risk in lending the money.

The benefit of an unsecured education loan is planned to pay off all the existing education loans and take up one education loan, repayable on a periodical basis.
It is particularly useful for students who have no safety or have bad credit.

Unsecured education loan is merely an education loan where the lender knows the monetary situation of the borrower that it is not fine but is still willing to lend a loan.