Co Applicant Eligibility Criteria For Unsecured Education Loans
An education loan without collateral is one of the most sought after sources of higher education funding in India. One of the biggest highlights of any unsecured education loan scheme is the fact that borrowers are not required to pledge collateral security in order to get an education loan without collateral. However, the absence of collateral security is one of the major factors behind why most NBFCs and private banks are stringent about the co applicant eligibility criteria for an education loan without collateral in India.
If you go through the policies of unsecured education loan services in India, you will find that most of them put a lot of stress on the co applicant eligibility criteria. It is common knowledge that unsecured education loans do not involve any collateral security. Hence, setting the certain co applicant eligibility criteria is the only way in which lenders providing unsecured education loan services can ensure the reliability of borrowers. This article will give you detailed information about the co applicant eligibility criteria set by the two major categories of lenders which lend an NBFC education loan for higher studies. This will help you plan your higher education loan process in an effective manner.
Co Applicant Eligibility Criteria of Private Banks
Private banks are considered to be one of the most reliable sources of an unsecured education loan for students who wish to fund their higher education abroad with the help of one. ICICI Bank and Axis Bank are two of the most prominent private banks which provide an education loan without collateral for abroad studies. Let’s take a look at the co applicant eligibility criteria set by each of these banks for an education loan without collateral.
The Axis Bank Co Applicant Eligibility Criteria For Unsecured Education Loans
Axis Bank offers a lot of benefits to borrowers of its unsecured education loans. Some of these benefits include a maximum education loan amount of INR 75 Lakhs and a repayment period of 15 years. Let us take a look at the co applicant eligibility criteria which individuals need to fulfil in order to be eligible for an Axis Bank education loan.
Axis Bank education loan eligibility criteria for co-applicants (for secured education loans):
- The co-applicant should be a citizen and a resident of India.
- The co-applicant must have a stable source of income and should be a regular tax-payer.
- The co-applicant should have a CIBIL score of 700 and above to qualify for an Axis Bank education loan for abroad studies
Documentation To be submitted by co applicants for an Axis Bank Education loan
- KYC documents
- Bank statement/ Passbook statement of the last 6 months.
- Duly filled guarantor form (optional)
- Relevant ITR documents
ICICI Bank Co applicant Eligibility Criteria
ICICI Bank is one of the topmost banks which has some really lucrative education loan schemes. One of the biggest highlights of an ICICI Bank education loan scheme is its versatility. The bank offers higher education funding in the form of both, secured, as well as unsecured education loans to students who come from all walks of life. One such provision is that borrowers who have a work experience of more than 3 years are eligible to avail an ICICI education loan without having to name any financial co applicants. However, those who require a regular ICICI education loan are required to fulfill the following co applicant eligibility criteria.
- Co-applicants can be individuals who are the immediate family of the candidate. For e.g, mother, father, siblings and parents-in-law only can be named as co-applicants. Any individual who is not related to the candidate in the above way cannot be named as a co-applicant for ICICI Bank education loan schemes.
- Financial co-applicants are required to present their ITR documents of the previous 3 years. A co-applicant’s ITR is a compulsory requirement stated by the bank.
- Co-applicants having a steady source of income are preferred. If this is not the case then candidates may fill the ICICI Bank education loan application form here to avail help regarding the same.
- If the candidate has had a work experience of 3 years and is applying for an ICICI Bank education loan for abroad studies to study in an A3 institute, they need not name a financial co-applicant to avail a secured education loan through ICICI Bank. This provision is only available for secured education loans for A3 universities.
- The remaining ICICI Bank education loan eligibility criteria are applicable to students availing an ICICI Bank education loan for A1 and A2 universities.
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Co Applicant Eligibility Criteria of NBFCs
NBFCs or Non Banking Finance Companies are one of the second most prominent sources of a loan without collateral for education abroad. Some of the top NBFCs which offer a hassle free unsecured education loan experience to borrowers are Avanse, Auxilo and Incred. One of the mandatory requirements placed by all NBFCs for their borrowers is to adhere to the co applicant eligibility criteria set by them for this very same purpose.
Auxilo Co applicant Eligibility Criteria For Abroad Education Loans
Auxilo is one of the very few NBFCs which offers an education loan without collateral in India. The Auxilo education loan scheme is designed to cater to the various needs of higher education aspirants. Let us take a look at some of the co applicant eligibility criteria for loan without collateral for education abroad set by Auxilo.
Some of the basic Auxilo education loan requirements that co-applicants need to fulfil in order to qualify for an Auxilo education loan are:
- The co-applicant should have a steady source of income.
- Only close family members (Parents, own siblings) can be named as financial co-applicants.
- The co-applicant should be a regular tax-payer. ITR documents of the previous two years are crucial to the unsecured education loan process.
- Retired family members cannot be named as co-applicants.
Auxilo education loan documents required from co-applicants:
- Any of the basic KYC documents (Aadhar card, PAN card, driving license)
- Income proof documents
- If the co-applicant is a salaried professional, then the salary slips of the previous three months, along with their ITR documents of the previous 2 years are to be submitted.
- If the co-applicant is self-employed, then their bank account statement of the previous 3 months, along with their relevant ITR documents of the previous 2 years are to be submitted.
The points mentioned above cover the benefits offered by Auxilo for students who apply through WeMakeScholars for an education loan without collateral. If you wish to avail similar benefits, do get in touch with our financial officers today.
Avanse Co Applicant Eligibility For an Education Loan Without Collateral
Avanse is one among the select few NBFCs that grant unsecured education loans to students in need. The benefits of applying for an Avanse education loan include being able to apply for an education loan that helps fund unconventional courses like Arts & Humanities, pilot training and licence courses, etc. One of the biggest plus points of applying for an Avanse education loan through WeMakeScholars is that applicants get to avail a 0.5% off on their education loan interest rate. The co applicant eligibility criteria set by Avanse for borrowers of unsecured education loans for abroad are as listed below.
Avanse education loan requirements to be fulfilled by co-applicants.
- The co-applicant should be a close relative of the candidate.
- Parents and siblings are the most preferred co-applicants.
- In rare cases, where both the parents as well as siblings of a candidate are unemployed or do not meet all the criteria, other co-applicants are accepted.
- A candidate’s in-laws (if married) and immediate relatives from the candidate’s maternal or paternal side can be considered as co-applicants for unsecured education loans from Avanse Financial Services
- Spouses are not eligible to be co-applicants as per the Avanse education loan terms and conditions.
- The co-applicants must have a steady source of income. They can either be salaried professionals or self-employed.
- Co-applicants having a good CIBIL score are mostly preferred for an Avanse education loan for abroad studies.
Avanse Education Loan documents to be submitted by Co-applicants:
- Bank account statement for the previous 6 months.
- If the co-applicant is a salaried professional, then they will be required to present the payslips of the previous 3 months to their lending authorities at Avanse.
- Documents that can be presented as proof of residence (Aadhar card, Driving license, etc.)
- PAN card and Aadhar card.
- If the co-applicant is self-employed then they will be required to present a document that can be submitted as proof of business.
In order to avail a hassle-free education loan process, request a callback from the WeMakeScholars team today. Let us move ahead and take a look at co applicant eligibility criteria of one of the most sought after unsecured education loan providers in India – Incred.
Incred Education Loan Co applicant Eligibility Criteria
Incred finance is one of the up and coming names in the NBFC industry. Borrowing an Incred education loan is an easy process, due to the easy and efficient way in which each Incred education loan application is handled. Candidates can expect their education loans to be approved in the fastest, most efficient way.
Incred lends both secured as well as unsecured education loans to students who are looking to fund their higher studies with the help of student loans. An Incred education loan for abroad studies ensures that candidates face no obstacles in their studies abroad, with respect to their financial requirements. With an Incred education loan, you can rest assured that you will get your funds well on time without any delays.
Incred Education Loan Requirements for co-applicants
No education loan can commence without the presence of a co-applicant, especially for unsecured education loans. Since these loans do not require candidates to pledge security of any kind against their education loans, it is all the more necessary to name a co-applicant to avail of any Incred education loan. Incred finance pays close attention to certain factors of the co-applicants financial profile for this very reason.
Individuals who meet the following Incred education loan requirements only can be named as co-applicants for an Incred education loan.
- The co-applicant should be related to the student by blood. Preferable co-applicants are parents, siblings and in rarest of the rare cases, immediate relatives can also be considered.
- The co-applicant should have a steady source of income. They can either be self-employed or salaried professionals. In either case, the co-applicant must have a concrete financial profile.
- The co-applicant should have filed their ITR of at least two years prior to applying for an Incred education loan. Relevant documents showing proof of the same have to be submitted to Incred finance at the time of applying for an Incred unsecured education loan.
- The co-applicant should have a good CIBIL score, preferably 700 and above, in order to apply for an Incred unsecured education loan.
Incred education loan documents related to co-applicants’ financial records:
- If the co-applicant is a salaried professional, then salary slips issued in the past 3 months have to be provided for the purpose of processing the unsecured education loan application.
- If the co-applicant is self-employed, their bank account statement of the previous 6 months has to be provided.
- ITR documents of the previous 3 years to be provided by the co-applicant, regardless of whether they are self-employed or salaried professionals.
Having a thorough understanding of the co-applicant eligibility criteria is an added plus if you plan on funding your higher education with the help of an education loan without collateral. If you require a thorough rundown of the complete details, do get in touch with the WeMakeScholars financial team at the earliest opportunity. We come to the conclusion of this article with this point. Keep reading our blog to remain updated with the latest trends of the education loan market.
Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it’s free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, China, France among others