Offering 85 Lakhs without Collateral: Tata Capital Education Loan

With the rising cost of education abroad, education loans are a lifeline for students with high academic aspirations. Particularly for students who cannot go for collateral loans, non-collateral loans are the best options. Tata Capital is providing collateral-free education loans of up to 85 lakhs to students for overseas education.

In this blog, we will explore everything about the Tata Capital education loan without collateral, including its features and benefits.

What are Education loans without collateral?

Education loans without collateral are those loans that do not require any collateral to be pledged as security. These loans are an alternative option for students who cannot take a collateral loan.

Many lenders are offering education loans without collateral. However, Tata Capital, a subsidiary of Tata Sons Limited, is one of the private lenders funding abroad education, supporting students to pursue their higher education in India and abroad.

Overview of Tata Capital Education Loan without Collateral

Tata Capital has introduced education loans to enable students to pursue graduation and post-graduation from the listed and recognized institutes in India and abroad. Under this initiative, Tata Capital is offering education loans without collateral, in which students do not have to pledge any assets as collateral.

Students can get a loan amount of up to 85 lakhs to cover their tuition fees, accommodation, and other educational expenses. Tata Capital is providing these loans at competitive interest rates so that the burden on students and families can be reduced.

However, these non-collateral loans are primarily issued based on two conditions of the co-applicant

• Salaried Co-Applicant
• Self-Employed Co-Applicant

Salaried co-applicant: A salaried co-applicant is an individual who is employed on a salaried basis and joins with the primary co-applicant, i.e, the student, sharing equal responsibility of sharing the loan. This is done to enhance the eligibility of the student, which eventually reduces the risk to the lender.

Self-employed co-applicant: Self-employed co-applicant refers to the individual who works for themselves, but not as an employee for the company. Typically holding a business, a freelancer, or having some other form of income, etc., they share the responsibility of repaying the loan along with the applicant, i.e, the student.

Key features of the Tata Capital Education Loan

High loan Amount: Students can get a substantial education loan amount up to 85 lakhs that covers all the educational expenses, including tuition fees, living expenses, and travel costs etc.

Rate of Interest: The rate of interest at which the Tata Capital education loan is offered ranges from 11% to 13.5%.  This may vary, subject to the terms of the lender.

Zero Margin: The attractive feature of this loan is zero margin; unlike other lenders, students do not have to spend from their pockets. 100% of the education expenses are covered for premier universities. For other institutes, students have to pay 15% of the total amount.

Processing Fees: Tata Capital charges a processing fee of up to 2% plus GST on education loans

Loan Tenure: The Loan tenure is up to 13 years. Students get a moratorium period of up to 12 months along with the course duration.

Benefits of the Tata Capital Education loan without collateral

Benefits of the Tata Capital Education Loan Without Collateral:

No collateral Requirement: Students do not have to worry about providing collateral such as...

• Immovable assets like flats, houses, non-agricultural lands, etc.
• Liquid assets like fixed deposits, insurance policies, or government bonds.

Generous Loan Amount: Tata Capital Education Loan is offering up to 200 lakhs for secured education loans and 85 lakhs for unsecured education loans to study in India and abroad. The loan amount covers...

• Tuition fees
• Accommodation
• Travel expenses
• Other education-related miscellaneous expenses, such as a laptop, computers, etc.

Competitive Interest Rates: Students can enjoy education loans at competitive interest rates that make borrowing affordable and manageable. The interest rate starts from 11% to 13.5%. This range depends on the various factors mentioned by the lender and the university chosen by the student.

Flexible Repayment options: Tata Capital Education Loans provides flexible repayment options where students can repay the loan after the completion of the course. Students get a moratorium period during the course duration, plus up to 12 months as a grace period. However, after this period, in case of delayed payments, the student has to pay 3% per month on the overdue amount.

Quick-Hassle Free Process: The Tata Capital non-collateral loans application process is quick and simple. Since students do not have to pledge any collateral, the time required for verification is much less compared to secured loans.  The applicants' and co-applicants' details, including repayment capacity, are verified during the process, which is typically an online process. After being approved, a sanction letter is issued with the loan amount, interest rate, and repayment schedule.

Eligibility Criteria for the Tata Capital Education Loan without collateral

Below is the eligibility criterion required to secure the Tata Capital Education Loan without collateral.

• Nationality: Both the Applicant and Co-Applicant must be Indian citizens.
• Age:  The applicant's age should ideally range from 18-35  years.
• University: The university to which the student is going should be a recognised and listed, and accredited institute in India or abroad.
• Co-Applicant: Lenders require a co-applicant who equally shares the responsibility of repaying the loan. Therefore, a co-applicant with a healthy financial background is mandatory. Parents, siblings, spouse, grandparents, and maternal/paternal uncles are eligible to be co-applicants.
• Admission Confirmation: The applicant must be able to produce an admit card of a recognised university as proof of admission.

However, the above details may vary from case to case.

Documents required for Tata Capital Education Loans without Collateral

The Documents required for the Tata Capital Education loan without collateral are given below.

1. Identity Proof: Both the applicant and the co-applicant’s proof of identity, such as an Aadhar card, PAN card, or passport.
2. Photographs: Two photographs each, the applicant and co-applicant are required to submit during the application process.
3. Address Proof: Aadhaar card, voter ID, or utility bills as proof of address of both the applicant and co-applicant.
4. Academic Document: The student has to submit academic documents such as the 10th grade, intermediate, graduation, and entrance exam scores, if given.
5. Loan Application Documents: A duly filled and signed loan application form needs to be submitted by the applicant.
6. Income Proof: Income proof documents such as salary slips, income tax return, profit and loss, balance sheet, and a copy of bank statements for the last 6 months.

How to Apply for Tata Capital Education Loans Through WeMakeScholars

• Step 1: Visit the Wemakescholars website and fill out the application form, and request a call back.
• Step 2: A dedicated financial officer will reach out to you and walk you through the details and requirements of the loan process, and provide all the details required by the financial officer.
• Step 3: Your Financial officer will then analyze your profile and send you the document uploading link.
• Step 4: Submit all the required documents using the document uploading link. Your financial officer will take care of the rest of the loan process and will update you on the loan process.

Conclusion

In this blog, we have explored the Tata Capital Education Loans without collateral, along with the Key features and benefits. We also discussed the eligibility criteria and documents required to be produced during the process. 

However, expert guidance is always a game changer in making important decisions. We at Wemakescholars have dedicated and experienced financial officers who can support and guide you throughout the loan process. Reach out to us to get the right advice and thank your future self later.