education loan without collateral for abroad
What is a Non-collateral Loan?
Any loan you can get without collateral is called non-collateral loan or unsecured loan. Your academic score, future income, co-applicant profile and some other parameters are analyzed and based on that, the bank gives the education loan without collateral for abroad.
Which bank can give non collateral education loan for abroad
There are three types of education loans are available. They are government banks, private banks and NBFC. Government banks can give you unsecured loans up to 7.5 lakhs only. In case your education loan total expenses are upto 10 lakhs, you can apply to Government Bank. But the staff in government banks may trouble you a lot for the 7.5 lakhs education loan process. Many students have reported this issue.
So, some consultancies are also helping for education loans from 7.5 lakhs from government bank. If you prepare your loan file and arrange a list of required documents and submit it in the branch as told by the consultancy team which you approached, there will be more chances of getting sanctioned for non collateral education loan for abroad in government banks.
If you apply from some companies those who tie up with banks you have a higher chance of getting an unsecured education loan of up to 75 lakhs. An average of 40-50 lakhs unsecured loans have been sanctioned But it depends on your profile. 50 lakhs may not be available to everyone but private banks or NBFC can give you such a huge amount. If you opt for US country for your education loan, you can get 75 lakhs loan amount without collateral.
You can get up to 25 lakhs for Canada, 25 lakhs for UK, 20 lakhs for Germany, Island and if it is a top university according to the global ranking, you can try up to 40 lakhs.
collateral free education loan is available on which basis
Bank people mainly consider 2 things when you take a non-collateral loan. The first, they check which country you are going to, which university you are going to and how good the university is. They will look at your overall academic profile and also they look at what are the chances of you getting jobs.
If you do not get jobs after all these points then they will come to the second factor. they will look that someone in your family can pay off the loan. That means they will be decided by looking at the financial profile and financial history of a co-applicant.
Student Profile
Your academics are very important in the student profile i.e. Tenth, Inter, Degree Marks. when you are going to U.S. then your GRE score matters a lot. If your GRE score is more than 300 then you are safe. So, you have more chances of getting a non-collateral loan. If it is not 300 we can try but if it is less than 290 it is very difficult to get unsecured loans. Which course you are taking matters a lot when you are taking a loan. If you are going to study stem courses i.e. Science, Technology, Engineering, Mathematics, the bank loan will give comparatively easy. If you are going to study business or law then finding a loan can be a bit tough.
Apart from this, if you want to take other courses like arts, tourism, fashion designing, etc. it will be very difficult for you to take a loan without collateral. If the financial profile of the co-applicant in these courses is very good, they can try for non-collateral education loans.
But there is no guarantee. Unsecured loans are mainly available to postgraduate students. In case you want to study bachelors it is a bit difficult to find. But if students apply from bank tie up companies, there are more chances of getting loan.
Co- applicant profile
When you are taking a loan, those who share your loan responsibility with you on the loan application are called co-applicants. Banks consider three factors of your co-applicant as main while giving loan without collateral. First, their income. It does not matter whether they are salaried or self-employed.
Their income should be more than 20,000 thousand minimum and there should be income group to support it. Salary slips if your co-applicant is an employee or else business details should be there. The second is income tax returns should be at least two years and the third is CIBIL score should be at least 670.
Considering the points we have mentioned you should search and check the co-applicant for yourself accordingly. Commonly, students' parents i.e. mother or father or siblings means brother or sister, in case of marriage, their spouse is put as co-applicant. Banks also accept them as common.
In case if you don't have a good co-applicant among them, some bank will accept aunt, uncle as your co-applicant.
But in this condition we cannot guarantee that the bank will give you a education loan without collateral for abroad. But there are no such requirements in collateral loan.
This means that the financial profile of the co-applicant is not seen much. And another important thing is that if the students have more work experience of three years and have a good income profile, they can avoid the factor of needing a strong financial co-applicant.
The interest rate in unsecured education loans starts from 10.75 percent and in some cases it can go up to 13-14 percent. If you go to a good university and country, your interest rate will be low. If your co-applicant's profile is not as good as yours, the interest rate will be higher.
After checking your entire profile, they will tell you the final interest rate. If you apply directly for a non-collateral loan, you will be charged a higher interest rate.
How long does it take to get a abroad education loan without collateral?
Banks after verifying all the documents, they will ask if any more documents are required for the abroad education loan without collateral in maximum three to four days or else the loan will be sanctioned.
In general, if the documents are correct within six to seven days of uploading the documents the loan is sanctioned. And one more important thing unsecured loans are not given to students of some places like North East, Jammu and Kashmir. If any of their relatives are in a big city, they can try for their loan.
Listen to this carefully as it will be essential for you while taking an education loan. Let us take an example and talk. Let's assume your non collateral loan eligibility is 40 lakhs. But you need a loan of 60 lakhs. So, in this case there is only one option that is partially secured loan. In this case, if you arrange collateral of 20 lakhs, then you can get a sanction of 60 lakhs. But remember, select government bank if you have collateral. But in this case, if you arrange 20 lakhs collateral and go to government banks, they will sanction you a maximum loan of 20 lakhs. For 60 lakhs loan you can opt private banks or NBFC with partially secured loan. I hope you got some useful infirmation from this article.
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