Personal loan for furthering your career

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Mon, 08 May 2006

A new type of personal loan is now available to people wishing to fund studies that will help them further their career.

Run by the Department for Education and Skills, the Career Development Loan scheme offers personal loans to help people take vocational courses.

Up to two years of studying can be funded with personal loans of between Ł300 and Ł8,000. Borrowers then start paying back the personal loan on a monthly basis once they have completed the course.

Three high street banks – Barclays, the Co-operative Bank and the Royal Bank of Scotland – offer these personal loans as part of the Career Development Loan scheme.

A spokesperson for the Co-operative Bank explains that the government pays the interest on the personal loan during the duration of the course.

"It allows you to enhance and change the direction of your career," the representative adds.

Meanwhile, students taking out loans to fund their studies at a young age are becoming increasingly financially aware, according to Samantha Owens of financial website Moneyfacts.

Ms Owens, the head of research at the portal, says it has become cheap to borrow and people are therefore becoming more used to being in debt.

She adds that young people are more financially aware so they are repaying their student loans and other debt.

"The fact that they had to get into debt made them more financially aware," Ms Owens concludes.

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