Many students are happy after the facility of paying the education fees through credit cards is provided. This facility is quite beneficial as it allows the students to pay their fee hassle free, however on the other hand it is being informed that while paying through credit card EMIs the student will not get time till the end of the course or the moratorium period to start paying back.
In case of the education loan student is usually provided with a moratorium period, but with the credit cards the repayments begin immediately. It has been noticed that the interest rates on the credit card loans is bit more in comparison to the education loan and personal loan. The range of interest rates for education loans is 18-19%.
A personal loan can be availed at 13.50-20%. Compared with this, a credit card loan can cost 18-24%. These rates vary across the lenders. Though paying the education fee through the credit card EMIs is an easy and hassle free process but paying back the credit card loan in EMIs means incurring the heaviest interest rate compared with other types of loans.