Education loans without collateral might be a life-saving alternative for Indian students who want to study abroad. Education overseas may be expensive, and many students and their family members do not have the financial means to pay for it. On the other hand, students can fund their studies with the aid of education loans without putting their assets in danger.
Read the full article below compiled by the experts at admissify to get all the details.
Unsecured Education Loans
Unsecured education loans are an excellent choice for students who do not have any assets to use as security. These loans are granted depending on the student’s creditworthiness and financial situation. Although the loan amount is often lower than that of secured loans, interest rates may be higher and the payback period may be shorter.
For students who want to study abroad, several banks and financial organizations in India provide unsecured education loans. The best study abroad consultants in Delhi note that Axis Bank, HDFC Bank, and ICICI Bank are among the main suppliers. These loans provide low-interest rates, flexible payback alternatives, and simple application procedures
Non-banking financial companies
Alternative finance providers include NBFCs (non-banking financial companies) such as Incred and Auxilo. These companies provide students with an abroad study loan of up to 40 lakhs with a rate of interest ranging from 10 to 18%.
The best study abroad consultants in Guwahati highlight that there are also certain international lenders available, such as Leap Finance, Prodigy Finance, and others, that assist applicants by providing an overseas school loan without the security of up to 80% of the entire expenditures. Also, note that Interest rates are seen to be in the 10-16% range.
Student Credit Cards
Student credit cards might also be useful for students who want to study abroad without providing collateral. These credit cards, which may be used to pay for tuition, travel expenditures, and other educational expenses, have lower interest rates and credit limits than conventional credit cards.
Student credit cards can help students establish a strong credit history, which will be useful when seeking loans or other financial goods in the future. However, the best study abroad consultant advises that students must use these credit cards carefully and make periodic payments, as missed payments can have a detrimental influence on their credit ratings.
Eligibility for seeking an educational loan
The loan providers often look for specific details as mentioned below to grant a loan without collateral for study abroad.
- A minimum score of 60% in high school to assure the employability potential of the student post studies
- Financial co-applicant’s income
- Degree program and the specialization that the applicant wishes to pursue
- Country that the applicant aspires to go to
- University ranking that the applicant wishes to enroll in
Finally, education loans without collateral for overseas studies are an excellent choice for Indian students seeking to fund their studies. It is advised by the best study abroad consultants that Students should carefully study the terms and conditions of these loans before deciding which choice best meets their financial requirements and ambitions.
If you are still confused then you can contact the experts at Admissify who can assist you to finalize the best-suited option to finance your studies abroad.
To read more informative articles like this and clarify your doubts before starting your study abroad journey, visit the webpage of Admissify.
