If your current job is getting boring and you want a change, or if you think you could do more in your current job, you might want to look into getting a career development loan. Career loans can help you get more training for your job by helping you pay for it. Here are some things you should know about development loans if you want to move up in your career and invest in learning.
What are loans for career growth?
Career Development Loans, or CDLs, are part of a government programme that started in 1988 to help people continue their education so they can get better at their jobs. People who are employed, self-employed, or out of work can get them as long as they meet the requirements.
How do I sign up?
When you apply for a CDL, you have to meet the same requirements as when you apply for any other loan. You might be able to get a CDL if you are taking a vocational course that lasts no more than two years, or three years if part of the course is hands-on training. A small number of high street banks offer CDLs. You don't have to be a customer of those banks to get the loan, but you may need to open an account with them.
Deferred repayment
The main benefit of career development loans is that they are "deferred loans," which means that you can pay them off later. This is like a student loan in that you don't have to pay anything back until the end of the loan term, which is usually just a little bit longer than the length of the course you are taking. During the loan term, the Department for Education and Skills (DfES) pays the interest. When the loan is over, you pay it back with a fixed rate of interest. Even though the rate can be different from one lender to the next, because they are part of a government programme, they tend to have lower rates than other personal loans.
How much money can I get?
In general, you can borrow between GBP300 and GBP8000. The CDL can be used to pay up to 80% of course fees and 100% of other costs, such as travel and materials. But if you are unemployed, the loan may be enough to pay for all of your course costs.
Putting money into your future
CDLs are a great way to put money into your future career and get the skills you need to move up. Even though you have to pay back the loan with interest, you won't have to pay anything while you're taking the course. The money you pay back should be made up for by the extra money you make with your new skills. But, just like with any other loan, you should make sure it's the right choice for you and that you'll be able to pay it back once the course is over.
