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If you are determined to repay your student loan as soon as you can then you must be exploring all the options available to you. One of those options, you wish was to for a personal loan to pay off the student loan in question.
But the sad news is that most money lenders do not allow paying off student loans using a personal loan. And even if some of them do, we’d recommend you to think twice before taking that plunge. This is because personal loans in the UAE come with shorter repayment periods and higher interest rates. However, personal loans are great when you need instant cash for starting a business, renovating a house, buying equipment for your business or even to fund your kid’s stay away for higher education etc.
As mentioned earlier, using personal loan to pay off student loan isn’t the best financial decision. However, personal loan in UAE has a set of its own advantages and if this is your last resort, you can consider it for the following reasons.
Taking a personal loan in the UAE to repay your student loan can be a little risky. It’s like opting for one liability to get rid of another. You may get a different repayment term or interest rate, but it is still a debt. You will still need to continue making monthly payments until you pay off the entire personal loan amount.
Instead, you can try refinancing or consolidating your student loan. It is a better way to manage your student loan debt. Through consolidating your student loan, you might get a lower interest rate or an extended repayment term.
Here are the reasons you must consider refinancing your student loan.
Now that you know the drawbacks of taking a personal loan in the UAE, you must consider refinancing your existing student loan. And if you do, there are various lenders available in the UAE to help you out.
Do your own research and find out the suitable benefits with reasonable interest rates online. Get in touch with us if you need help. Our experts will take you through plenty of potential finance options and help you through the process.