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Difference between normal bank loan & Professional and Career Development loan? Watch

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    I don't see the difference if you still have to pay interest back at a pretty high rate of 9.9% for the PCD loan after you finish. I thought the loan was interest free.
    Thanks.
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    Iirc the PCD loan is interest free for the first month after you graduate, and then after it gets added on. I'm not too sure though.
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    There's very little difference between the eligibility, T&Cs etc., apart from having a delayed start to repayments and being at least partly underwritten by government because they are a greater risk to the banks than an ordinary bank loan (unsecured and with a greater risk of default). That's why only two banks offer them - none of the others wanted to. Banks don't offer "normal" loans to fund study, for precisely that reason.

    It's highly unlikely that you could get an unsecured bank loan for £10,000. Or maybe you could if you could make repayments whilst still studying and you didn't mind paying Wonga-level interest rates. See private student loan companies for the unpleasant details. Then make sure you don't go near them!
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    (Original post by EDUC4TION)
    I don't see the difference if you still have to pay interest back at a pretty high rate of 9.9% for the PCD loan after you finish. I thought the loan was interest free.
    Thanks.
    I think the only difference is that PCDL are available to students, normal loans aren't usually.
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    Ok thanks guys.
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    (Original post by EDUC4TION)
    Ok thanks guys.
    To clarify what I said, you would normally need a regular full time salary to take out a bank loan
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    (Original post by jelly1000)
    To clarify what I said, you would normally need a regular full time salary to take out a bank loan
    Yupp understood. Not the case in my situation as I won't be working as I want to carry onto a full time post grad course. I guess I will borrow half from a PCD loan and the other half from parents.
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    (Original post by EDUC4TION)
    Yupp understood. Not the case in my situation as I won't be working as I want to carry onto a full time post grad course. I guess I will borrow half from a PCD loan and the other half from parents.
    Yes afraid PCD and someones savings are the only real options unless you are very fortunate to get a scholarship (they are like golddust at masters level).
    Just remember with the PCD you are credit checked still so having no credit history or a bad credit history can count against you. And they don't always give you the amount you requested either.
 
 
 
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Updated: May 11, 2015
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