All AnswersIs there any chances to get education loan without collateral and co applicant because I don't have this two?
Asked by Naveen kumar Elumalai over 2 years ago
Study Abroad Expert
There are two types of loans for those of who don’t know.
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. Yes. you heard me right
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 any help with the loan application process, I suggest you directly get in touch with experts here. They will help you with all the information and also assist you in the entire loan process for FREE.
Hope this helps!
Yes, it is possible to obtain an education loan without collateral or a co-applicant, but it may be more challenging. Some lenders offer education loans without collateral, but the interest rates may be higher. The availability of such loans depends on the lender and the borrower's creditworthiness.
For instance, Mpower Finance and Prodigy Finance are foreign lenders that provide education loans without collateral for studying abroad, particularly in the USA and Canada. These lenders do not require a co-applicant, making it an option for those who do not have one.
However, having a co-applicant generally increases the chances of getting a loan approved, as it provides security for the lender. If the borrower cannot repay the loan, the co-applicant is responsible for repayment.
If you don't have a co-applicant or collateral, you can explore options like foreign lenders or alternative lending platforms that may have more flexible requirements. It is essential to research and compare different lenders and loan options to find the best fit for your needs.