Recurring deposit is a facility that is provided by banks in order to deposit small sums of money over time that actually gets large enough later on. It is a debt relieving investment tool, hence very beneficial. The advantage of this mainly is that the interest rates are nearly 8 to 9% and the money can be added on periodically. The paperwork required is also minimal and incase of the sudden demise of the primary owner it can be easily passed on to the nominee.
Loans can be taken against these deposits and they are also not eligible for tax deductions. Any number of installments can be given in advance to it too. These are also flexible in terms of deposit as customers can then pay any amount above demarcated minimum every period. This is a very easy and reliable way of growing wealth in the bank and it is one of the safest too.
There are different types of loans available. Among these the two most important loans are personal loans and education or student loans. The post below jots down the differences between personal & education loans.
First of all, the personal loans are multi purpose loans which imply that you can use it for any of your needs. But in case of education loans, you can use the advance only for education purposes. You have to state the name of the college or university to get approval for the loan.
Then, another important difference is that in case of personal loans, the repayment has to be made from the next month. But in case of student loans, you will start to repay after you get a job. Besides, one of the most significant differences is that the education loans, being underwritten by government always features a lower rate of interest in comparison to personal loans.