Summary: This article helps you navigate the world of unsecured loans, what it is, who provides them, how to qualify for them, and how to increase your odds of getting an education loan for abroad studies without collateral.
Are there international education loans that require no collateral?
Quick answer- Yes!
Certain banks and education-loan-focused NBFCs offer collateral-free education loans to students. This means, no need for providing security like property/house attached with the loan as collateral. Instead of using borrower’s assets as security, banks approve unsecured loans by determining the borrower’s creditworthiness, and ability to replay the simple interest during the course of study.
However, there’s a catch!
For education loans, the co-applicant of the loan (usually the applicant’s parent or close relative) must have a good CIBIL score and should be able to show proof of income. The income range for the co-applicant is decided in such a way so that the simple interest payment during the course of study can be covered.
Proof of income could be salary slips (in case the co-applicant is employed) or Income Tax Returns and Bank statements in case the co-applicant is running his/her own business.
One definite advantage of an unsecured loan is that the loan tends to be processed faster. With Cynapse, if you have all the documents in order, such a loan could be processed within a few days instead of weeks and months.
Secured Loan vs Unsecured Loan
Here are some positives and negatives of taking an un-secured or secured education loan:
Are you interested in availing education loan for abroad studies without collateral?
If you are interested in knowing more about availing of an unsecured loan, it’s as simple as sending a Hi on Cynapse’s Whatsapp number. You can know more here: https://cynapse.co.in/student-education-loan-on-whatsapp/