A career development loan is a type of loan taken out to get training in connection with a potential career or to gain advancement in a career path. This term is usually used in the United Kingdom (UK). Numerous courses can be taken using money from a career development loan, but the course must be professional in nature. The exact size of the loan can be negotiated but under certain conditions the loan can cover the full cost of the course. Paying back the loan can be very difficult so many people choose not to take out these loans if they are to risk not being able to repay them.
Education can be expensive but is often worth the cost in the long run. A career development loan can help a person achieve education to achieve a desirable career level. Theoretical The loan is used to pay for a course that will lead to a job that is lucrative enough to help pay off the loan. When something goes wrong and a job cannot be found, paying off the loan can be extremely difficult.
Generally, a career development loan will have no interest in the duration of the course and in a short period afterwards. When this period is up, the person who took out the loan is responsible for paying interest on the loan and paying it off in the manner originally agreed. These restrictions will always be described by the bank giving the loan before all the money is exchanged.
Only certain people qualify for a career development loan. Applicants must be over the age of 18 and live in the UK. It is often the intention of the applicant to work in the European Union, but it would be difficult to punish a person for taking a job elsewhere when no other option is available. Various agencies and banks can help determine whether a person is eligible for a loan. It is even possible to find out more about eligibility over the phone.
Not only should a person qualify, but the desired course must qualify as well. Only education leading to a career is considered acceptable. The loan can be used to pay not only to cover course expenses, but also to books, rent and other expenses associated with staying in school and getting important education.
Whether to draw a career development loan is a good idea in a financial sense depending on the circumstances. When the loan is to be repaid, a person may be in serious trouble if he or she still cannot find a job. If the qualifications paid by the loan do not lead to employment then the loan was mainly wasted and both time and money will be lost. In addition, interest on a career path can be quite high, so it may not be worth the risk.