Tips for Career Development Loans

Career development loans are loans which are granted by financial institutions for improving one’s job prospects and moving ahead with one’s career.  Though these loans are available in many countries, they are popular in the United Kingdom as such loans are supported by the UK government.

Some Tips for Career Development Loans

A person who wants to borrow a career development loan should keep in mind the following points:

  • Loan Coverage

This loan is available only for a vocational course.  For instance, it cannot be used for a foundation course or for looking for a job.  It would cover a large percentage of the course fee, any associated costs like books and living expenditure.

  • Place of Residence

The applicant should be a resident of the UK and should have stayed there for a minimum period of three years before getting the loan.

  • Work Location

A person should apply for a career development loan only if he intends to work in the UK or in the European Union.

  • Apply to Designated Banks

The UK government has tied up with a few banks for these loans.  A person can apply to any of them.

  • Time Taken For Approval

A bank will take some time to approve such loans.  This could range from six weeks to three months.  So a person who wishes to take such a loan should not keep it till the last minute and apply well in advance of the commencement of the course.

  • Minimum Age

Only a person who is 18 years of age or above can apply for this loan.

  • Payments only After Course Completion

The borrower need not worry about the payment of either principal or interest until he completes his course.  The interest for the course duration period will be borne by the government.  He can start with his loan payments a month after course completion.

  • Loan Amount

He can apply for a loan ranging from 300 pounds to 10,000 pounds. He should only borrow how much he actually needs as he will find it difficult to repay huge amounts.
Following these tips for career development loans will surely help to utilize these loans well.