Why are the NBFCs Best in Non Collateral Loan for Studies Abroad?


Unsecured Overseas Education Loan

 “I want to graduate from a foreign university!” – this dream is highly mushrooming among students in India with the increased possibilities to study abroad. But this dream often gets a break on the way instead of accomplishing it straight away just because of the costs and expenses involved.

Here is a way how the road to accomplishing the dream to study abroad can be smoothened. Students can apply for scholarships for their studies if they do not want to spend anything from their pockets, nor take loans from some bank nor ask for financial assistance from someone. Education loans are the main source of finance for overseas studies. In India, the education loan is mainly divided into two separate kinds of overseas education loan - Secured and Unsecured Loans. The type of loan is selected based on the applicant’s decision of pledging the collateral or not.

Through this article let us understand in brief the unsecured loan for studies abroad and the benefits of it.

Unsecured Loan

As the name suggests, this abroad education loan can be availed without collateral, that means the candidate need not pledge anything as collateral security.

NBFCs (Non-Banking Financial Companies) are the best financial institutions for to borrow these kinds of non-collateral loans.

This article will cover all the essential points related to borrowing an abroad education loan without collateral from NBFCs.

Benefits of applying loan from NBFCs:

·         Swifter and Simple Disbursement: The disbursement process of a non-collateral education loan from NBFCs is faster as the applicant need not pledge collateral security of any kind. Thus, a lot of time is saved since legal opinion from a lawyer and getting the property evaluated by a competent authority are skipped. The best part is that the disbursement of a non-collateral education loan from NBFCs is sanctioned within a weeks’ time.

·         Less Paperwork: the amount of paperwork is comparatively less as there is no collateral. Since the student need to pledge anything paperwork related to that from both the student and NBFCs is omitted. Therefore, this speeds up the entire process.

·         No Loan Margin: Being a non-collateral education loan, there is no loan margin set for education loan applicants by NBFCs as generally 100% requirement is met by the banks.

Eligibility Criteria for Unsecured Loan (students and co-applicants)

The NBFCs practice a strict eligibility assessment criterion since they majorly provide abroad education loans without asking for any security from their candidates. The criteria might seem to be more stringent in comparison to those of public banks.

Some of the basic eligibility criteria laid down by NBFCs are:

For Students:

·         Age of the students – 18 years and above

·         Offer Letter from the abroad university

The students’ academic profile must fit eligibility criteria set by the lending NBFC

1.       High school marks (10th & 12th)

2.       GRE, TOEFL, GMAT, SAT grades

For Co-applicants:

The co-applicant’s profile is examined thoroughly when candidates apply to NBFCs for an education loan for abroad studies without security. The most important document is the financial profile of co-applicant when it comes to unsecured education loans from NBFCs. Some of the mandatory conditions set by NBFCs in India for co-applicants are:

·         Fixed source of income is mandatory for the co-applicant

·         Financial documents such as

1.       ITR

2.       salary slips

3.       bank account

Apart from the above criteria, NBFCs are also strict about certain other factors of a co-applicant’s profile. This varies from one NBFC to the other.

To conclude, we would like to recommend that before you apply for education loan for higher studies abroad thoroughly research the current education loan market before approaching any lenders for an unsecured study abroad education loan.

Read more:

Study Abroad Loan: Knowledge Guide

Comments

Post a Comment

Popular posts from this blog

Different ways Students can Carry Money Abroad

Image
Students going abroad need money for their travel, accommodation, food, educational expenses and so on throughout their educational stay. In this case, international debit/ credit cards are not advisable in the first place. The new smart ways to complete foreign transactions are forex cards and wire transfers. This can be useful for anybody travelling abroad for any reason, travel, work, leisure or study. Spend smart with Forex Cards: Ease of Global Use: Forex Cards are easy to use as they are prepaid cards. This enables the user to swipe the card at airports, food counters, hotels and wherever required instead of using cash currencies or international credit/ debit cards. Safe for Transactions: Forex Cards come with a chip and PIN, that make it secure for use. Forex Cards are helpful for students specially as it is safer to use and carry. Students staying in hostel or dormitories are often under the threat of stealth. Travelling to new places is also a risk for
Read more

State Bank of India Offering Study Abroad Loan

Image
  When it comes to pursuing higher studies abroad, one of the major concerns is how to finance the foreign degree. Majority of the aspirants then turn to availing an education loan. In India, there are many public banks, private banks like State Bank of India, Bank of Baroda, Axis Bank, ICICI Bank and NBFCs like HDFC Credila and Incred that offer a loan to the Indian students. In this blog, we are going to take a closer look at various aspects of overseas education loan offered by State Bank of India. So, let’s get straight into it!  State Bank of India, one of the prominent financial lenders in India is the first choice of study overseas aspirants when it comes to availing an overseas education loan for foreign studies. Alike all other financial institutions, SBI also offers two types of education loans i.e., Secured Education Loan and Unsecured Education Loan. SBI being a government bank, there are various advantages of offering a foreign education loan from the aforesaid bank. Read
Read more

Are you Aware of Kinds of Education Loan?

Image
Almost all students and parents prefer to take an education loan to fulfil the financial requirements when it comes to studies abroad. The studies abroad education loan covers course fee, exam fee, cost spent on study material, accommodation charges, insurance, travel expenses and other miscellaneous expenditures as well. Also, it is crucial that parents and students comprehend the technicalities involved in the education loan process, its pros and cons before taking such a big decision. In this article, we will try to understand the kinds of overseas education loan that a student can get from the banks. There are two types, one is the secured education loan and another one is an unsecured education loan. Let’s look at the details one by one. Secured Education Loan - If you are planning to take a loan of 35-45 lakhs for your master’s program or 75 lakhs and above for your under-graduation, then applying for a secured overseas education loan is the right decision.
Read more