Private education loan without collateral - How to get one?

Private education loan without collateral - How to get one?

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Event Description

This episode of our Loanflix web-series is on "Private education loan without collateral". This episode will cover many factors related to private education loan without collateral. Below is an outline of the points that are discussed in the episode.

 

What is a Unsecured loan/ private education loan without collateral?

An education loan granted by private banks or NBFCs (Non-Banking Financial Corporations) is called a private education loan without collateral.

 

What is the eligibility criteria for a private education loan without collateral?

Although there are multiple parameters taken into consideration for Private education loan without collateral, the two most important ones are below: 

  • Academics- 10th,12th scores, degree certificate, test scores (GRE/SAT/GMAT/IELTS/TOEFL)
  • Co-applicants' income profile (Salary, ITR, financial history).

 

Who can be co-applicants?

Always, immediate family including parents or siblings are the preferred co-applicants. In case they are not available, you may name your blood relatives as co-applicants (if accepted by the lender).

 

Who can provide an unsecured education loan?

A private education loan without collateral is provided by private banks and NBFCs. The major NBFCs in India are:

 

Which factors are considered for a co-applicant?

  • Salary/ Income:  The Co-applicant should have a decent income with clear proofs (eg. Salary slips, ITR).  If they are self-employed, all documents related to the business is required.
  • Income Tax Returns: ITR of a minimum of two years is mandatory. Apart from these, a co-applicants CIBIL score is also considered to check his financial history. 

 

How much amount is approved for education loans without collateral?

If the student is planning to pursue his/her higher education in the US, NBFCs approve loans of up to Rs. 50 Lakhs. However, the average amount approved by them is Rs. 35-40 lakhs.

The maximum loan amount approved for countries like Germany, is Rs. 20 lakhs. For Australia and Ireland, it is about Rs. 15 lakhs, and for Canada, the amount is up to Rs. 25-30 Lakhs. For the rest of the world, one can get an unsecured education loan only if they are going to a reputed university, and the limit is Rs. 30-35 lakhs.

 

What is the Rate of Interest for education loan without collateral?

The rate of interest provided for an unsecured education loan from NBFCs vary from country to country. It starts from 11% and can go up to 14.5%. 

 

For which countries do NBFCs provide unsecured education loans?

The list of eligible countries includes the US, Canada, Germany, Ireland, Australia. For other countries, only candidates who have applied to top universities are considered for an unsecured loan.

 

What is the processing time taken by NBFCs?

The average time taken is seven to fifteen days for NBFCs.

 

Which education streams are considered for an unsecured loan?

Fields that belong to the STEM category are given preference by NBFCs for an unsecured education loan.

 

We hope that the above points have given many of you a rough idea on what is to be expected when applying for a private education loan without collateral. For more information, do watch the 3rd episode video below.

Also, stay tuned for our next episode on  'Documents requirement for abroad education loan with collateral', where our experts will be talking about the list of documents that are required for a secure abroad education loan. If you missed our previous episode on "Collateral education loans", do watch the episode here.

Date And Time

Timezone : (GMT+05:30) Chennai

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Speakers

Damini Mahajan

Damini Mahajan
CoFounder & CEO, WeMakeScholars 

Damini is the Cofounder & CEO of WeMakeScholars.com. It’s a BITS start up supported and funded under the IT Ministry, Govt. of India. The organisation’s motive is to offer unbiased collateral/non-collateral based education loan support to students who are planning for studying abroad. As this initiative is under the digital India campaign, it's at free of cost. WMS works with 14+ banks (public/pvt) in India and help you get the best edu loan matching your profile.

Prior to launching WeMakeScholars, Damini had done her masters from the University of Sheffield, UK. Her education was funded under the Developing Solutions Masters Scholarship which covered her full tuition fee ($ 38,000). Damini is also a gold medalist in her Bachelors and also won the outstanding student award from the Vice president of India. 

She was the speaker at TiECon 2016 at Silicon valley, San Francisco in the social entrepreneurship segment. She was also covered in the Asian Entrepreneur magazine in the “Women on Top in Tech”, a global series of Women Founders, CEOs & Leaders in Tech. 

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