How To Apply For Student Loans – To be able to get the best education loan for studying abroad, you need to follow the terms and conditions set out by the rule provider, make yourself eligible enough to receive loans, and more importantly, you need to know how to apply for student loans.
How To Apply For Student Loans
While every establishment has application processes specific to them, below are simple steps on how to apply for student loans.
1. Compare And Explore Study Abroad Loans
Compare each study abroad loan option presented to you, so that you can ultimately find the best education loan for abroad studies for you. Most loan websites have a comparison tool you can use to do this or they have a team of advisors that can match you to the right loans that suit your profile.
2. Review Terms And Conditions
Review the terms and conditions of any lender you matched with regarding your loan, then compare each one and pick the one that is good for you.
Depending on the stipulated process, an application for a loan can be made in person or online, during which you and or your co-applicant / co-signer will be required to submit the required documents online.
How To Apply For Abroad Education Loan Without Collateral
Collaterals are assets like personal real estate, home equity, personal vehicles, Paychecks, cash or savings accounts, investment accounts, paper investments, fine art, jewelry, or collectibles, that you pledge to the lender while applying for an education loan to study abroad.
A collateral is asked for so that in case you’re not able to pay back the loan, the bank or organizations can reclaim those possessions in place of the money given to you.
It is difficult to get a non-collateral education loan for abroad studies, but not entirely impossible, as you can always opt for an unsecured education loan, which gives loans to you without asking for collateral.
However, these education loans for studying abroad without collateral, are only given based on your and your co-signer’s future income and creditworthiness.
If you and your co-signer have a good credit history, as well as the academic and professional experience to do well after the master’s course you applied for, then this type of loan can be given.
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Requirements For Applying For Student Loans Abroad
Every establishment has specific documents which they ask for as requirements to give you a loan for higher education abroad.
However, below are some basic documents you might require for a student loan:
- Filled application form
- Passport photographs of you and your co-applicant.
- The ID of you and the co-applicant (ID can be a PAN card, driving license, Voter ID card, Aadhar (for Indian applicants), Card, or Passport.
- Resident proof of you and the co-applicant.
- Academic documents – Mark sheet and certificates
- Results for GRE, GMAT, TOEFL, IELTS, etc.
- Admission letter from the university or college.
- Last six months’ bank statements of your co-applicant
- Income proof of your co-applicant
- Collateral (if applicable) – flat, home, or non-agriculture land. The following documents are required – property title deed, building approved plan, and NOC for a mortgage from the builder or society.
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Organizations That Offer Education Loans Without Collateral
Nationalized banks, private banks, NBFCs, and international lenders are the type of organizations that often offer education loans without collateral for abroad studies.
All you need to do is to identify such organizations and banks like the ones we have mentioned below and apply for one.
1. Leap Finance (https://leapfinance.com/)
Leap Finance is an Indian international loan provider, that sanctions an instant collateral-free education loan for abroad studies which you can avail of after 3 days of applying for the loan on their online platform.
2. Axis Bank (https://www.axisbank.com/)
Axis Bank offers up to INR 40 Lakhs without collateral, for its study abroad loan. Interest rates vary from 11.25% to 13% depending upon the applicant’s profile.
3. InCred (https://www.incred.com/)
InCred is an NBFC that offers overseas education loans without collateral of up to INR 40 lakhs, an exception, however, can be made for this amount. Interest rates for InCred are from 11.75% to 16% depending on the loan amount.
4. Avanse (https://www.avanse.com/)
Avanse provides both secured and unsecured loans, their foreign education loan without collateral is facilitated via the latter. The loans start from INR 1 lakh to INR 40 lakhs, which can be increased depending on your profile.
5. Auxilo (https://www.auxilo.com/)
Auxilo offers education loans abroad without collateral, and they also provide loans for studies in India. You do not influence the minimum amount you can borrow, however for their unsecured loans, the maximum amount is INR 40 lakhs; case-level exceptions can be made.
As we told you in the beginning, getting a loan for abroad studies isn’t impossible or inaccessible, and as long as you meet the right organizations and follow the right directions, you are well on your way to getting a loan to fund your study in your dream country.