Eligibility to Get Education Loan Without Collateral
Studying in a foreign university is an aspiration for many meritorious students. But bearing the huge financial expenses becomes a barrier in front of this dream for many young aspirants. Even if they manage to get a suitable loan package, it is mostly an education loan with collateral. Collateral is nothing but an asset or property that the borrower has to offer to a financier to secure the loan.
Putting your asset or property at risk never feels safe. Therefore, an education loan without collateral would be the perfect solution for this problem.
Nowadays the third-party education loan financiers have made the process of getting your education loan without collateral easier with their innovative strategies. These mediators work with both nationalized as well as private banks, so you can choose your lender according to your preference.
Why is Collateral Needed for an Educational Loan?
Many financial institutions including nationalized and private banks have various kinds of lucrative educational loan packages at varied rates of interest. But up to the amount of Rs 7.5 lakh, most of them do not need collateral in exchange for the loan. Whenever the loan exceeds this amount, these financial institutions ask for an asset or an immovable property like a house, flat or land from the borrower to be kept as collateral. In case you fail to pay back your loan amount within the stipulated period, the bank will have the right to seize your property or asset.
This might sound problematic and risky for many borrowers and therefore can be a big barrier while opting for an educational loan. But if you take the help of third-party loan mediators, this problem can be easily resolved.
What do you Need for Availing an Educational Loan Without Collateral?
There are many financial institutions like Axis Bank, ICICI Bank, and other non-bank finance companies (NBFCs) that offer you an education loan without collateral. But the entire process of application and loan approval is very complicated. This is where the third-party education loan mediators will come to your help. Since most of these providers have worked with various financial institutions for a long time, they can arrange the sanction of an education loan for you without collateral. Moreover, you can get these loans at a very low rate of interest. You might be thinking that they will probably charge you high processing fees in exchange for their services, but there are no such hidden charges involved.
Therefore, once you employ these third-party mediators, you will be relieved of all the complexities that are associated with the entire procedure of loan. You can go through some of these points to know what you will need to avail an education loan without collateral:
- You have to be above 18 years of age in order to become eligible for this educational loan application.
- There must be a strong co-signer or guarantor for you who will be able to share your burden of the loan if you fail to pay up.
- Your loan approval will be facilitated if you have good creditworthiness in your bank.
- Your personal documents like PAN card, Aadhar card, passport, 10th, 12th, or higher education mark sheets will be needed at the time of document verification.
- It is important for you to have your credit report and the latest 3 months payslips and 6 months banking slips.
- You must have the TOEFL/GRE/IELTS results at the time of loan application along with your admission letter and passport size photo.
As evident, getting an education loan without collateral comes with too many requirements. However, there are ways where you can easily get an education loan without the need of collateral. For this, the best option would be to consult a third party education loan financier. They will be able to figure out your problem and provide the most effective solution.