Pursuing higher education overseas can be financially challenging, and not every student can cover tuition fees and living costs. While traditional student loans often need security such as FDs, property, and other assets, not everyone can provide such collateral. This is where an education loan without collateral and co-applicant comes into the scene, offering financial assistance depending on academic merit and the institution’s reputation instead of pledged assets.
Such loans let you follow your aspirations without the burden of securing a loan against assets. Even though the interest rate is slightly high, some lenders offer flexible rates and grace periods to ease the financial burden. Unsecured loans let you pursue your academic goals without financial boundaries. But here the question arises: How do you get such a loan? Do not worry. Here’s a comprehensive guide about security-free study loans that will answer all your queries.
You need to fulfill certain eligibility criteria when you apply for a non-cosigner education loan because lenders look at your repayment capacity to alleviate the risk of default. The eligibility requirements and factors that lenders consider before granting a co-signer and collateral-free education loan are as follows:
Unsecured loans are usually available for pursuing academics in famous destinations like the following:
Lenders providing collateral-free loans usually prefer learners enrolled in post-graduate courses, MBA, and professional certifications because it lets them minimise the risk of default.
The following documents need to be submitted to get a study loan without a co-signer and pledging security:
Do you wish to pursue higher studies abroad? Are you searching for how to get a student loan without security and co-signer? Getting an education loan without collateral and co-applicant needs a structural approach. Below is a step-by-step guide to help you with the whole procedure:
Start by researching banks, NBFCs, and other financial establishments in India that offer collateral-free loan without a co-signer. Carefully go through the website of each lender and choose the one that caters to your needs and preferences.
Make a list of the loan providers that you find suitable. Assess each of their loan options depending on rates of interest, repayment terms, loan amount limits, processing charges, and other features. Search for lenders that have a history of sanctioning unsecured loans without a co-signer for candidates with strong academic records.
Once you select your loan provider, gather all the relevant documents, including KYC, admission letter, income documents, and so on.
Go to your loan provider’s official website and locate the application form. Fill in your details correctly and attach the relevant documents properly. Online collateral-free loan application is swift and convenient.
After filling out the application form and attaching the documents, recheck everything carefully. Go through all the details you have mentioned in the form to ensure accuracy and check the attached documents. After rechecking everything, your application.
After your lender receives your submission, the application will be thoroughly assessed. Your loan provider will review your profile and paperwork. This includes validating the authenticity of your academic credentials and other relevant information.
Once your lender reviews your application, the loan amount will be disbursed. The processing time varies from lender to lender, but you will get a reply within specific period. In most cases, the loan amount will be paid directly to your university. You need to contact the university financial centre to get money for your living expenses.
Listed below are some points that you should remember when applying for a student loan without a co-signer and collateral:
A collateral-free education loan to pursue higher studies overseas is a boon for students because they do not need to pledge their assets. Regardless of your financial background, you can access study loans, helping you focus on your career. The financial risk for families is also substantially decreased. However, selecting one bank or NBFC takes time and effort. Before applying for an education loan without collateral and co-applicant, it is advisable to compare the interest rates and repayment terms, and the lender needs to find a loan or a bank that caters to your goals.
