As the name suggests, a career development loan is given for helping the borrower’s career prospects to improve or enhancing job skills. In the United Kingdom, this loan is supported by the government. It has tied up with various well-known banks like Barclays and the Royal Bank of Scotland.
What are the Criteria for Applying for a Career Development Loan?
A person should apply for a career development loan only if he wants to fund a vocational course he plans to take.
The applicant should be aged 18 years or above.
He should have resided in the UK for at least three years before the commencement of the course.
He should intend to work either in the UK or in any other country within the European Union.
Other information Pertaining to Career Development Loans
- A career development loan is an unsecured loan
- The loan amount could range from 300 pounds to 10,000 pounds.
- This loan covers most of the course fee, course costs like stationery and books and living expenditure. The portion of the loan which is assigned as course fee is paid directly by the bank to the institution conducting the course.
- The interest for the course period is borne by the government during the course period.
- The repayment of the loan begins only a month after the completion of the course.
- If the borrower stops the course midway, he would have to start repayment immediately.
- Since loan approval could take anywhere between six weeks to three months, it is advisable to apply much in advance of the date of course commencement.
Can a Career Development Loan Be Included In a Debt Relief Order?