Have you considered going back to school, but you can’t afford the costs associated with this activity? Whether for a degree, a master’s degree or other training, there is a wide offer of credit to study at various financial institutions.
In this article we present the offer of personal credit for teaching purposes in Portugal, in 2019, in order to facilitate your choice and fulfill your dream of returning to university.
What are the advantages of a credit to study?
The credit to study has a panoply of benefits that are worth knowing. Firstly, the fact that it has more competitive interest rates compared to traditional consumer credit stands out, which makes the total loan cost (MTIC) lower, allowing consumers to pay a lower monthly installment.
Depending on the offer of each financial institution, it is possible to have access to a grace period of capital, ie you can choose to pay lower monthly payments for a certain period of time during which you will only pay interest. However, choosing a grace period implies that after these months the consumer will have to pay a significantly higher monthly fee.
Other banks allow study credit to only begin to be amortized upon completion of the course, allowing students greater financial flexibility during their studies.
In addition, this type of financing covers very flexible repayment terms, usually up to 10 years. Also the amounts of credit to study are for all consumer needs, ranging from one thousand dollars to 75 thousand dollars, according to the financial institution.
What is required to apply for this type of loan?
In order for the customer to be able to see his credit for studying approved, he must meet a set of requirements required by banks, namely:
- Be of legal age;
- Submit a declaration of enrollment in a Polytechnic Institute or University, may be in Portugal or abroad;
- Not having your name on the Rose Bank Black List.
However, some extra documents may be required in specific situations: for example, in order to be able to access an interest rate subsidy (APR) due to good academic performance, financial institutions ask for proof of student grades.
What credit study solutions are there?
Take Phillipp, a computer engineer with a net monthly income of $ 1,200, who wants to pursue a master’s degree in management to achieve the desired position in an IT consultant.
He will need 15,000 dollars to pay for the course, which costs 7,000 dollars, and to cover other expenses, such as accommodation and school supplies.
In this sense, Phillipp chose to compare the credit market solutions to study, defining the payment term in 60 months. Realized, however, that not many financial institutions offer this type of financing.
We looked at four financial institutions that offer study credit and allow you to perform online simulation on their websites.
Among the offers presented is General Deposit Box with the product Accreditation, which, in addition to being the option with a lower monthly fee and lower total cost of credit, provides a shortage capital during the course attendance and up to one year. year after its completion.
The Agricultural Credit Bank Education option has a very competitive Annual Effective Annual Rate (APR) and provides a funding amount of up to 50 thousand dollars in Portugal and Erasmus and up to 60 thousand dollars abroad.
As for Corfidis Formation credit, despite having a slightly higher APR than the previous options, it is exempt from opening commission and has no penalty for early repayment.
Lastly, Sanbuwan’s offer, Formation Credit, is the least competitive with an APR of 11%, however it offers the possibility of capital shortage up to four years.
In this analysis of the various solutions, it is important to pay attention not only to the interest rate, but also to the flexibility granted by each institution regarding, for example, spread subsidies, in order to minimize the final cost of credit. .
In addition, students should also look for other available options, such as grants from the state or private institutions.