Are Career Development Loans a Good Deal?

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.

Are Career Development Loans A Good Deal?

Though career development loans are meant for people who want to build a career, it may not be suitable for everybody.

These loans are a Good Deal in the Following Situations

  • When One Doesn’t Want To Pay When Studying

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.

  • When One Has A Low Credit Score

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.

  • If One Wants Funds For Other Course Related Expenses

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

  • The rate of interest for career development loans is high.
  • The borrower may not want to bear the burden of the entire loan after finishing the course and may want to start repayment right away.

Whether career development loans are a good deal or not, depend on the financial situation of the borrower.