I'm a student. I'm interested in pursuing MBA finance which requires 4 to 5 year work experience. So, am I eligible for a no collateral/no cosigner loan post my work experience and a good gmat score?
Asked by Angelica over 1 year ago
You need to first know that there are two types of loans:
Collateral loan and Non-Collateral Loan.
In the first one, you are supposed to provide the bank with a property that you own and show it as collateral.
Basically, it is an assurance to the bank that if in any case you are not able to pay off the loan amount after the designated period of time, then the bank is free to use that collateral property of yours to reimburse the loan amount and pay off your debt.
Financial co-applicant because the family’s financial condition is not that good. This is the case where a Non-collateral loan comes in. Here you can designate a person as your Financial Co-applicant. This means that if in any case, you are not able to pay your loan amount back to the bank within the given time duration then that person would be held accountable to pay off your debt. Please note that your financial co-applicant is required to be someone from your family and someone who has a stable income.
Now, in many cases, students do not even have a family property or a financial co-applicant.
Even in that case, you can get a loan of upto 40 lakhs.
You just need to show that you have a work experience of certain years or your last drawn salary was above a certain figure. Now what I mean by ‘certain’ here is that the number is not fixed. It varies across banks.
But the important point to note here is that YES you can get a loan without any collateral and without any financial co-applicant.
If you need assistance for your loan, you should directly get in touch with Study Abroad Experts here. They have been helping and assisting students for scholarships, loans and visa for aa long time now for FREE.
Hope this helps!
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