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Can we get Education Loan Without Co Applicant?
Abroad Education Loan | Updated
When you decide to apply for an education loan and go to a lender, did you face the question- “Who will be your co-applicant?”. The questions that popped into your head might have been - “Who is a co-applicant?”, “Who can be a co-applicant for my loan?” among others.
This article will answer those questions and address an important question - “Will I get an education loan without a co-applicant?”
Before attempting to answer that question, it is essential to know the definitions of two loan terms: Co-applicant and Financial Co-applicant.
Co-applicant: Co-applicant is the person who is liable to pay the student loan if they do not. They are supposed to join the student in sharing the responsibility of repaying the loan.
Financial Co-applicant: A Financial co-applicant is a person who acts as an additional security to the borrower if the co-applicants’ financial profile is not very good.
We can simplify this by taking an analogical example.
You are going out on a freezing, snowy day. You're wearing a body warmer and then a thick furry jacket on top of it. Your body warmer will be the co-applicant and the furry jacket will be the financial co-applicant.
You can go out without a jacket sometimes when it is not so cold but you will need to wear a body warmer to protect yourself. Similarly, for getting an educational loan, you MUST HAVE a co-applicant. Few banks and NBFCs waive off the financial co-applicant in some exceptional cases but never the co-applicant.
Oftentimes these two terms are confused with each other. You might think an education loan can be obtained without a co-applicant. But it is not possible to do so. Having a co-applicant helps you have a better chance of getting a loan.
Now addressing the most awaited question - “Will I get an education loan without a co-applicant?
The answer is no. You cannot. Why is a co-applicant important in an education loan?
Loan lenders seek security for the amount of money they lend. And that security is in the form of a co-applicant. Usually, the primary borrower will be the student. The student takes the loan money and goes for their higher education. They are not financially stable and finding a job will take significant time. Due to these reasons, if the main borrower cannot pay back the loan, then the co-applicant will have to pay it back.
If the co-applicant cannot repay the loan, the financial co-applicant comes into play to clear off the loan.
This is why having a co-applicant is a compulsory thing in taking an education loan.
Getting an education loan is impossible without a co-applicant. Few lenders waive off the financial co-applicant in some exceptional cases but never the co-applicant. |
But, what if you fall under these conditions:
- Do not have a co-applicant.
- Have a co-applicant with a very low income and a bad credit score.
- Do not have a financial co-applicant to back up the co-applicant.
- There is no collateral you can pledge to get a collateral loan in which the co-applicants’ profile is not that important.
- You cannot bear the burden of the loan yourself
In the above situations, getting an education loan would be nearly impossible.
Is there no solution? There is!
There are lenders who give education loans without the requirement of a co-applicant. Who are they and what are their loan products?
Let us get into their details right away.
Foreign lenders for education loan
Until now, you only knew you could take a loan from public and private banks in our country. But did you know you can borrow money for your abroad education from foreign lenders as well?
The two lenders we will talk about here are:
Foreign lenders do not ask you for a co-applicant to lend you money for your abroad education. Do you not have a co-applicant for your education loan? Foreign lenders come to your rescue. |
Mpower Finance:
Mpower Finance was established in 2014 with its headquarters in Washington, USA. They fund students globally to study in the United States of America and Canada. They give out loans in USD.
Loan parameters | Details |
Who can apply for the loan? |
|
Maximum loan amount | 50 thousand USD |
Rate of interest | Undergraduate: 13.99% Masters courses: 11.99% in USD |
Processing fee | 5% in USD |
Moratorium | Course duration + 6 months |
Repayment tenure | 10 years |
Prodigy Finance:
Prodigy Finance is a UK-based company that gives out loans to students worldwide. The following are the loan product details:
Loan parameters | Details |
Who can apply for the loan? |
|
Maximum loan amount | 100% Financing |
Rate of interest | 9 to 10.5% in USD |
Processing fee | 2.5% in USD |
Moratorium | Course duration + 6 months |
Repayment tenure | 15 years |
Our team will always be there to help you with getting a loan without a co-applicant. Contact our expert financial officers who will help you with the loan.
Hope this article makes you understand how important a co-applicant is in an education loan and answers your question “Will I get an education loan without a co-applicant?”
Whenever you are ready, request a callback and we guide you with your loan completely free of cost.
Rakesh Rayapa
Dammannagari Harish
Hello Rakesh Rayapa,
Generally, In that case, you can show a legal guardian proof and make him/her your primary co-applicant. I believe your financial officer, S Oviya, is in contact with you. Please reach out to her regarding any query you may have, as she is the one who will assist you in resolving the education loan-related queries.
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