A strong academic foundation gives your child the ability to overcome hurdles and succeed. You may be worried about the rising cost of education. However, with a little bit of planning, it is possible to give your child the advantage of a good education, whether in India or
Did you know that a A good credit score enables you to get loans more easily and at more attractive interest rates. Moreover, there are ways to handle shortfalls if you need more than what you had earlier planned. Applications for instant personal loans, for instance, can fulfil your urgent financial requirements with minimal documentation and no-collateral needs.
Let’s look at some of the ways to ensure a smooth higher education.
1.Calculate an Estimate of Future Fund Requirements
You need to set a target amount for the child’s education needs. Although newer courses are coming up every year, identify a few career options and calculate their current cost. Considering the inflation rate at 7 to 8% p.a., and the number of years after which the funds will be required, calculate the amount of savings you need to make monthly. You can use a financial goal calculator for this.
2.Create Investment Portfolio Based on Your Risk Appetite
The number of years left to achieve your goals would impact your asset allocation. For long-term goals, you can choose equity-linked mutual funds or unit-linked insurance plans (ULIPs) with options to invest in equity funds. You can consider starting SIP plans in a mix of large-cap and mid-cap funds.
As a parent, ensure you have adequate life cover, through a pure term insurance plan so that in case of any eventuality, your child’s needs are not derailed.
3. Check Your Eligibility for Loans
To apply for an instant personal loan or a loan against property online, you need to check your eligibility. Your credit score is a big factor in your loan approvals as well as the repayment terms offered by the lender. Make sure you take steps to improve your score by paying your credit card bills and other debt repaying on time. This can be a major factor in being able to procure funds on time.
4.Savings Account Designed for Graduates and Post-Graduates
Teach your kids the value of savings and financial independence as they grow up. While you are saving up for them, they too can start saving for their higher education. Such accounts can provide a lot of benefits too, like:
- Attractive interest rates
- Zero balance benefits
- Free fund transfers and general banking services
- Free personal accident insurance cover
- Free airport lounge access
- Cashbacks and complimentary subscriptions
With proper savings, your kid can cover a lot of extra expenses like their cost of living abroad, including rent, food, utility bills, and more.
5. Apply for an Instant Personal Loan
Some education courses might not be eligible for education loans. In such a case, you can start the application for an instant personal loan online. These are unsecured loans, which means you don’t have to put up any collateral. Moreover, with minimum document requirements, you can get access to funds quickly.
Research your lenders well, before choosing any form of financing. Look at interest rates and loan tenors. Choose an option after reading through the fine print.