Dreaming of studying abroad but worried about funds? You’re not alone. With the cost of international education increasing by nearly 25% in the last five years, many students struggle to arrange finances.
According to the RBI, more than 20% of Indian students now rely on education loans to pursue higher studies abroad. A student loan for study abroad bridges this financial gap, helping students achieve their global ambitions without the burden of upfront payments.
Who is Eligible for a Non-Collateral Education Loan?
Theoretically, if you want to apply and get a student loan in order to go and study abroad, then the first thing you need to do is find out and understand the criteria needed to obtain a non-collateral education loan for studies abroad. Such loans vary from secured ones insofar as they depend mostly on the student’s academic achievements, the prestige of the university, and the borrower’s capacity to make the payments rather than the property or assets.
Eligibility Criteria:
- AcademicPerformance: Normally, a minimum of 60% marks in the previous studies is required.
- University Recognition: It should be approved by reputable global or national bodies.
- Co-applicant’s Income: While no security is required, the co-applicant’s financial stability is considered by the lenders.
- Confirmed Admission: A confirmation of admission in a foreign accredited university is a must.
- Preferred Countries: The USA, UK, Canada, and Australiahave been the most popular destinations.
A good academic background along with a good financial profile will facilitate the approval of an education loan for abroad studies without collateral.
Why Choose a Non-Collateral Education Loan?
Opting for a non-collateral education loan for abroad offers numerous benefits:
- It is not necessary to provide the property or fixed assets as security.
- The time for processing and disbursing is also very short.
- The loan amount can cover any combination of the four major expenses, i.e. tuition, travel, and living costs.
- Repayment of the loan can be made in a number of different ways, with the added benefit of a moratorium period.
In case you want a simple procedure and dependable assistance, a loan avanse without collateral is the most common option among Indian students.
Key Factors Affecting Loan Approval
While assessing the student loan for overseas study, the financial institution takes into account:
- Course Employability: Programs that lead directly to a job have more chances of getting approved.
- Co-applicant’s Credit Score: A high score is a guarantee of easy granting.
- Country and Living Costs: The deciding factor for the sum of the loan given.
It is a great advantage for students to know these aspects as they can get ready in a better way and their loan application will be more robust in case they want to take an avanse education loan without collateral.
Documents Required
If you want to take out an education loan for studying abroad without giving a collateral, you need to have the following documents ready:
- University admission or offer letter
- Academic records and mark sheets
- KYC and income proof of the co-applicant
- Course fee details
Preparing all the documents beforehand is the key to a speedy processing of a non-collateral education loan for abroad.
Conclusion
A student loan for studying abroad without collateral gives the power to students to obtain a global education without facing any financial barriers. Your dream of studying abroad can come true with academic excellence and a well-prepared profile.
Need some help? EduLoans facilitates students in finding the best education loan for abroad studies without collateral by providing easy-to-understand comparisons and complete support.
Wherever you want to go, the USA, Canada, or the UK, EduLoans.org makes it easy for you to get the necessary funding. Their knowledgeable staff helps you in getting avanse abroad education loan and other best options so that you can go abroad to study with confidence and at a reasonable cost.
Yes, but the amount of the loan or the interest rate may be different depending on your creditworthiness.
Yes, most lenders include in the loan the costs of tuition, travel, and accommodation.
Usually, 7–10 working days if all the documents are in order.
Yes, most lenders allow early repayment without a significant penalty or with no penalty at all.
Yes, a parent or guardian is normally required, even for a non-collateral education loan for studying abroad.