Career development loans are meant for those people who want to improve their job prospects by undergoing a vocational course. In the United Kingdom, the government has tied up with certain prestigious banks like Barclays and Royal Bank of Scotland. People who borrow from these banks can start making their loan payments after finishing the course.
Though career development loans are meant for people who want to build a career, it may not be suitable for everybody.
The advantage of career development loans is that the borrower does not have to pay anything during the course period. Loan repayment starts only a month after he finishes the course. This is especially beneficial for those who are still students and cannot afford to pay when studying.
The credit score to qualify for a career development loan is lesser than what is required for normal unsecured loans. So people who have low credit scores can opt for the former as that is the only credit source available to them.
While lenders of normal unsecured loans would grant only the amount actually required for the course or a part of it, career development loans provide money even for course related expenses like books, stationery and living expenditure.
Career development loans are not a good deal for people who can afford to make loan payments even during the course period. This is because
Whether career development loans are a good deal or not, depend on the financial situation of the borrower.