How to Get Non Collateral Education Loan In India
A non collateral education loan has proved to be a boon to those candidates who have been unable to secure collateral education loans to study abroad through government banks. A Non collateral education loan is mostly preferred by students due to the faster processing time and the easy process which involves less paperwork. This article discusses the various steps involved in the non collateral education loan process.
The 31st episode of Loanflix will also give you an in-depth explanation of the process. In this episode, the education loan expert at WeMakeScholars, Ms Damini Mahajan, explains how candidates can go about the entire non collateral education loan process without many hurdles. You may watch the same in the link given below.
Step 1: Shortlisting the NBFCs for an Education Loan Without Collateral
This is perhaps, one of the most confusing phases of the entire unsecured education loan process. With the rise in the number of NBFCs offering education loan without collateral in India at equally competitive terms and conditions, choosing the right lender has become a tedious task for many candidates. It is extremely essential to weigh in the pros and cons of the lending regulations of any lender before deciding to borrow an education loan without collateral from one.
One of the key factors of choosing the right lender is to plan in advance. This is exactly when WeMakeScholars helps you. Our financial team helps you compare the non collateral education loan terms and conditions of all the major lenders in India. As our team is well-experienced in dealing with thousands of education loan applications every year, our team will explain the terms in a simple manner and this can help you choose the right lender who can help cater to your financial requirements. Here’s a brief explanation of the exact process that takes place
Step 2: Connecting With the Non Collateral Education Loan Lender
Most of the NBFCs have their own websites, where students can fill some of their basic details and they receive a callback from them. This facility is indeed a boon as candidates are physically not required to visit these NBFCs in order to know their non collateral education loan scheme details. The downside of this system, however, is that you cannot really make out whether the caller is genuine or not. Unless and until you approach these NBFCs through trusted sources, it is never safe to disclose sensitive details to these callers.
With the increase in the number of bank-fraud cases, it is very difficult to find out whether the call you have been receiving is genuine or not.
When you apply for a non collateral education loan via WeMakeScholars, all your communication with NBFCs is done through a single, safe source. The amount of reliability provided by our team to our students is evident from the various testimonials written by them on almost all the social media platforms like Facebook, Quora, Google, etc. If you are looking to borrow your unsecured education loan through a reliable channel, do approach our team at the earliest and avail the various benefits.
Step 3: Sharing The Documents
Once all the terms and conditions have been orally relayed to you by your respective NBFC, you will be required to submit the relevant documents for your education loan without collateral. As NBFCs are privately run financial companies, their employee strength varies from time to time. When you come to think about it, the thought of strangers possessing your education loan-related documents is nothing less than a nightmare.
The WeMakeScholars team has developed a special portal through which you can safely upload all the digital copies of your education loan documents. The major benefit of uploading your document copies through our portal is that the security of your documents is guaranteed as the portal can only be accessed by the concerned authorities from your respective NBFC.
So what are you waiting for? Apply with us today and enjoy the various benefits of an unsecured education loan without having to worry about the safety of your education loan documents.
Step 4: Credit Verification Call
A candidate’s CIBIL score is extremely crucial to the unsecured education loan process in India. Most of the NBFCs are extremely careful about this factor of a candidate’s profile. Hence, post the successful submission of all the education loan documents for a non collateral education loan on the WeMakeScholars portal, your profile will be loaded into the lending NBFCs’ system. All your details are forwarded to the lending NBFC’s credit team. Post this, you shall receive a call from this team for reconfirmation of details.
If they need to cross-verify any detail about your profile, you will be asked about the same during this call with the credit team. Post this process, you will receive a confirmation regarding the status of your application for unsecured education loan.
Step 5: Provisional Approval of Education Loan Without Collateral
Once the credit team confirms the details of your financial records, candidates receive a call regarding the status of their education loan application. If confirmed, the following terms regarding your education loan will be communicated to you verbally by your loan officer at the lending NBFC.
- Rate of Interest of your unsecured education loan.
- The total unsecured education loan amount being offered.
- Processing fees to be paid by candidates to their lending NBFC.
- The interest payment to be done by the candidate every month. NBFCs offer partial interest payment or full interest payment, depending on your profile.
- Your loan insurance expenses.
If you are not comfortable with the details of any of the above terms, you can immediately get in touch with the financial officer assigned to you by our team. The financial team of WeMakeScholars is forever committed to making the education loan process easier for students. If you feel that the processing fees or the rate of interest being asked for is too much, we can negotiate these terms on your behalf and ensure that these terms are justified according to your financial capacity. So, request a callback today and get to enjoy a smooth education loan process.
Step 6: Paying the Processing Fee
The final stage in the unsecured education loan process is paying the processing fee. Do keep in mind that when you apply separately to NBFCs, the final terms are only communicated to you verbally. Nothing is given to you in writing. When you apply through WeMakeScholars, your financial officer will ensure that the lending NBFC gives written confirmation of terms like the interest rate, loan amount, final processing fees to be paid to the lender, etc.
You need to pay the processing fee in order to get your unsecured education loan sanctioned on time. Post the payment of processing fees, the sanction letter will be granted to you.
Step 7: Loan Agreement and Disbursement
Once the unsecured education loan has been sanctioned, the loan agreement will be prepared and given to you. Post signing the loan agreement, the loan amount will be disbursed according to your payment preference. The loan can either be credited to your personal savings account or through any payment mode preferred by you. This is the last and final step of the process for unsecured education loans in India.
Before you decide to begin with the process for non collateral education loan in India, you need to keep in mind that NBFCs are privately run financial companies and hence, one cannot expect the same level of security that government banks provide. But sometimes, when students have no valuable collateral to pledge, an unsecured education loan is the only way to fund your higher studies abroad.
When you apply to NBFCs via WeMakeScholars, you get a 0.5% to 1% reduction in your interest rate. Also, you can set all your worries aside and trust our process as we ensure our students’ safety first when it comes to education loans.
None of the NBFCs agrees to negotiate their interest rates when students directly approach them. It is only possible when you apply through us because of the rapport shared by us with the NBFCs. Apart from this benefit, our team is also able to provide the better end of any unsecured education loan scheme due to our deep knowledge about how unsecured education loans work. So the next time when you think of borrowing an education loan without security in India, think of us and apply through us in order to enjoy a hassle-free process.
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 at 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