Private Education Loan without collateral- What is it?
A Non-Collateral education Loan is a loan that does not require the applicant or co-applicant to place any collateral or security. Nevertheless, other factors like the co-applicant's income and the candidate's earning potential are taken into account.
The Co-applicant can be parents, siblings, parent’s siblings. Cousins are also accepted in rare cases. Spouses are not eligible as a co-applicant.
Who provides Private Education Loan without collateral?
Private Education Loan without collateral is usually offered by Non-Banking Financial Company commonly referred to as NBFCs.
The NBFCs operating primarily in the education loan segment in India are Avanse, Incred, HDFC Credila and Auxilo. We at WeMakeScholars work with all the above NBFCs except Credila. There are certain benefits you can be eligible for when you apply to these NBFCs via WeMakeScholars, rather than applying on your own directly.
NBFCs only operate in the major Indian cities. Hence, it is required that either applicant or co-applicant must be a resident of one of the major cities. The public banks also offer non collateral education loan, but it is only up to a loan amount of maximum Rs. 7.5 lacs. Also, their application process is very tedious and time-taking.
Which Countries and Courses are Eligible for a Private Education Loan Without Collateral?
The NBFCs primarily offer an education loan for students pursuing any of the STEM courses i.e Science, Technology, Engineering and Mathematics courses at the host country. They offering to fund to a non-STEM course is rare.
Host countries eligible for private education loan includes the top 5 destinations where students opt to study abroad- US, Canada, Germany, Ireland, and Australia. Well ranked and top universities in other countries are also eligible on a case to case basis.
This episode of Loanflix will introduce you to certain hacks which would prove to be useful in the long run. If you have any other questions regarding abroad education loan or any other related topic, feel free to request a call back from the WeMakeScholars support team for clarifications. We are very active online and would love to answer your comments.
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