Are you a student who wants to study abroad? Have you been waiting for years to get admission to your dream university but don’t have money? Are you tired of the enormous costs and don’t want to burden your family?
Then a personal loan for students is the right one for you. It will help you study abroad and solve your education expense problems. Let us learn more about this topic. Please read this blog post to know more.
Why apply for an Education Loan and personal loan for students?
Choosing a nation is a major factor in finding the total cost of studying abroad. This includes tuition and living expenses. For example, the average cost of an MS degree in the United States is between Rs 65,000 and Rs 70,000. Therefore, a large percentage of Indian students apply for Personal Loan For Study Abroad. They are from middle-income families. Education abroad is a huge thing for them. These dreams become a reality with loans.
Types of Education Loans and Personal Loans for Students
Before finding unsecured Personal Loans for students, discuss the two main types of Student Loan For Abroad Studies.
Collateral Education Loan
The borrower of a collateral personal loan for study abroad is expected to provide some form of security.
This can be in the form of property, gold, insurance policies, land, fixed deposits, etc.
Non-Collateral Education Loan
A non-collateral personal loan for students doesn’t need collateral. Unsecured international student loans need enough income.
Let us see the application process goes for a personal loan for students without collateral.
- Verify everything, including the interest rate on an Indian government personal loan for students. Also, check the repayment terms and the length of time you have to finish paying it back.
Eligibility and Documents Required for Abroad Education Loan Without Collateral Loan
You must first find out whether you are eligible for a personal loan for students. Any financial institution extending student loans will follow the standards laid out in this document.
- The candidate needs to be a legal resident of India.
- The applicant must be at least 18 years old, or else his or her parents will have to co-sign the loan.
- The candidate must have strong academic achievement.
- The applicant must have been accepted to study at a reputable overseas educational establishment.
Types of Education Loans
Based on Location
Domestic Education Loan
This form of loan is available to students who plan to study in India. If the borrower is accepted into an Indian university and fulfills all other criteria, the loan is disbursed.
Overseas Education Loan
These loans make it possible for students to study abroad at their chosen schools. Students who meet the requirements are eligible to apply for a loan to support the costs of studying abroad.
Based on Course
Undergraduate students can receive this loan to help cover the costs of attending college. Earning a bachelor’s degree takes between three and four years and can be focused on in a variety of ways. Individuals are better able to find entry-level employment. Also, they begin contributing to financial stability if they have at least an undergraduate degree.
Various college seniors in India are considering enrolling in a postgraduate program. These last for two years. Earning a graduate-level degree is preferred to acquire in-depth expertise in the field.
Career Development Loans
After gaining a few years of experience in the corporate world, professionals decide to take a step back from their careers. This is to further their education and get skills.
Loan Against Property, Deposits, and Securities
You can secure the money by pledging movable assets.
Like: real estate (farmland, houses, apartments, etc.), bank accounts (fixed deposit certificates, recurring deposits, gold deposits), debt instruments (bonds, debentures, equity shares), other financial instruments (equity shares)
Ensure that your collateral is in order for the loan. Banks do a lot of hassle for the collateral. Keep all documents ready for your movable asset.
A guarantee letter from a current or former employee of the bank can be a great asset.
Features and Benefits
- Foreign students can borrow up to Rs. 1 crore, while Indian students can borrow up to Rs. 50 lakh.
- In some cases, you can get a loan for 100% of the cost.
- Disbursements made in a foreign currency may be eligible for preferential exchange rates.
- Upon course completion, borrowers are eligible for a payback period of up to 12 years.
- The student and his or her parents should co-sign on the loan.
Process to apply for educational loan without collateral
Now we’ll talk about how to go about getting a no-collateral student loan to pay for your studies abroad:
- Identify the best option for you. Among the many confidential, no-collateral student loans offered abroad.
- Verify everything from the interest rate on an Indian government education loan. To the length of time, you have to pay it back before you can start making payments.
- Start by going to the loan’s official website.
- Please complete the application form.
- To submit the necessary paperwork, please scan and upload scans.
- Wait for a decision
What are some reasons for the rejection of a study abroad loan without collateral?
Rejection can happen for a variety of reasons.
- Applying to an undergraduate institution (UG) is better. This is due to the shorter length of the PG program.
- When a co-monthly applicant’s payments are more than they can afford
- We look at their age and their FOIR
- Fixed obligation to income ratio.
This article aimed to examine Personal Loans For Students to study abroad comprehensively. Whether an education loan is the best choice for you or not should be checked. Before investing, look for the best loan terms. It is possible to keep your Personal Loan for students always. Visit Piramal Finance for more information.