Whether you're pursuing your dream college, preparing for study abroad, or covering semester fees, student life often comes with financial roadblocks.
But which loan is truly the best option for students — Education Loan, Personal Loan, or Gold Loan?
Let’s break it down clearly, the Vizzve way 👇
📘 1. Education Loan – Tailored for Studies
Best For: Higher education (India or abroad), professional courses
Interest Rate: 7%–12% (lower under government schemes)
Tenure: Up to 15 years
Moratorium Period: Yes (repayment starts after course + 6–12 months)
Collateral Required: Not for loans up to ₹7.5 lakhs (with CGFSEL support)
✅ Pros:
Student-friendly repayment
Income tax benefits (Section 80E)
Lower interest than other options
❌ Cons:
Paperwork can be extensive
Mostly course-specific usage only
💸 2. Personal Loan – Flexible But Costlier
Best For: Miscellaneous student needs like gadgets, living expenses, travel, coaching classes
Interest Rate: 10%–24%
Tenure: 1–5 years
Collateral Required: No
✅ Pros:
Quick disbursal (esp. with Vizzve Finance)
No restriction on usage
No need for co-applicant
❌ Cons:
Higher interest rate
Shorter repayment window
Vizzve Tip: Perfect for short-term needs or top-up over your education loan.
🪙 3. Gold Loan – Quick Funds, But Risky
Best For: Students with gold assets in the family
Interest Rate: 7%–15%
Tenure: Up to 3 years
Collateral Required: Yes (gold ornaments or coins)
✅ Pros:
Fast approval
Lower interest than personal loan
No need for credit score
❌ Cons:
Risk of asset loss on default
Short tenure & no moratorium
Vizzve Tip: Ideal if you're looking for fast money and can repay quickly.
🧠 Vizzve Finance Verdict: Which Loan Should Students Choose?
| Loan Type | Best For | Interest Rate | Risk Level | Ideal For |
|---|---|---|---|---|
| Education Loan | Long-term studies, tuition fees | Low | Low | Full-time students |
| Personal Loan | Living costs, short-term needs | Moderate–High | Medium | Flexible usage |
| Gold Loan | Emergency funds with gold backup | Low–Moderate | High | Quick access, family gold |
✅ Conclusion: Choose Based on Need, Tenure & Risk
Go for an Education Loan if you're in a structured course and want long-term, affordable EMIs.
Opt for a Personal Loan via Vizzve for flexibility and faster approval.
Use a Gold Loan only if you need instant money and have repayment clarity.
💬 At Vizzve Finance, we help students explore all these options — transparently and quickly.
FAQs
Q1: Can I get a loan as a student without a job?
Yes, with a co-applicant (parent or guardian) or by pledging gold assets.
Q2: Which loan is easiest to get quickly?
Gold loans are the fastest, followed by personal loans from fintech platforms like Vizzve.
Q3: Can I use a personal loan for paying education fees?
Yes. Personal loans can be used for any purpose, including education-related expenses.
Q4: Which loan has a tax benefit?
Only education loans offer tax deductions under Section 80E.
Published on : 28th July
Published by : SMITA
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