How To Get Education Loan Without Security?

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How To Get Education Loan Without Security
The following is the list of documents required to avail an education loan without collateral:

  1. University offer letter mentioning tuition fees.
  2. Academic documents.
  3. Employment documents.
  4. KYC documents of both applicant and co-applicant.
  5. Address proof along with electric bill.

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What kind of security is required for education loan?

Which collateral is accepted for education loan?? – In India, Lenders accept two types of collateral security for education loan;

  • Immovable Security: An immovable property refers to assets such as a house, flat, non-agricultural land.
  • Liquid security: Liquid security refers to fixed deposits, term insurance policies, and government bonds.

Banks also consider third-party collateral for education loans, Third-party collateral means collateral securities of your friends’ and relatives’, where you can also pledge their property for your education loan provided they are willing to offer their property as collateral.
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Can I get 3 lakhs education loan without collateral?

Looking for an education loan without collateral? Here’s how to avail one An education loan is the easiest way to fund your higher studies. With several sources to get an education loan, it is equally difficult to choose one that will cover the cost without the need for collateral, since several borrowers do not own collateral or it is not eligible as per the lender’s criteria.

  1. In such a case, students can opt for an education loan without collateral from Indian lenders.
  2. Here are some of the frequently asked questions answered for students hoping to get an education loan without collateral How to get an education loan up to Rs 7.5 lakh without collateral? The Government of India launched a Credit Guarantee Fund Scheme for Education Loans (CGFSEL) to help students get an education loan of up to Rs 7.5 lakh without any collateral and third-party guarantee.

The credit risk guarantee fund scheme provides a guarantee on education loans given by banks under the Model Education Loan Scheme of the Indian Banks’ Association. Read | Students can apply for the loan under this scheme if they belong to the Economically Weaker Section (EWS) category, and the family income is less than Rs 4.5 lakh.

Students are eligible under this scheme even if the loan amount they require is more than the amount stipulated in the same. Features of this scheme that students should be aware of: 1. Eligible students get a subsidy on the loan amount of up to Rs 7.5 lakh.2. The subsidy is valid during the course period and the moratorium period only.3.

Students can avail of this subsidy only once in their lifetime.4. Aspirants have to submit income proof.5. The lending institution can charge a maximum interest of 2 per cent per annum above the base rate on loans under this scheme. How to get an education loan of more than Rs 7.5 lakh? There are several lenders in the market that provide education loans without collateral to study in India and abroad.

Public banks offer loans without collateral only up to Rs 7.5 lakh. However, private banks and Non-Banking Finance Companies (NBFCs) have numerous without-collateral loan products that cover the cost of education up to Rs 75 lakh. Also read | Some salient features of loans without collateral: 1. The loans without collateral cover a wide range of courses, colleges, and countries as opposed to loans with collateral.2.

The interest rate starts from 10.5 per cent, and can go up to 14 per cent.3. Any student without collateral to pledge can apply for an education loan as long as they can arrange for a co-applicant to co-sign the loan.4. Almost all loans without collateral come without a holiday period.

  • The interest charged during the study period has to be paid by the co-applicant fully or partially depending on terms and conditions.
  • To be eligible for a loan without collateral, students should – — Arrange a co-applicant with sufficient income to take on the liability of paying the interest/partial interest amount during the study period.
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— Have a good academic record and should be attending a university on the lender’s list of pre-approved universities. These universities are shortlisted by the lender, based on the employment opportunities after graduation. Also read | Apart from this, the co-applicant needs to submit income proof, such as the ITR of the last two years, bank statements, and salary slips.

If the co-applicant is self-employed, they will have to submit further business documents, such as the P/L statements and GST registration. The process to apply for a loan without collateral is to approach a lender after performing due diligence about the lender and the loan product. Fill in the application form and submit the required documents.

Since these loans do not come with the requirement of collateral, the document list is short and so is the processing time. Finding the right loan product confuses students as the market is flooded with lenders promising to offer the best ‘without-collateral’ loan product in the market.
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Can I get 8 lakhs education loan without collateral?

SBI Education loan without collateral – 1. Eligible courses-Studies in India

  • Under Graduation courses like B.A., B.Com., B.Sc., etc.
  • Post graduation courses like Masters and Ph.D.
  • Professional courses like Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Management, Computer, etc.
  • Computer Certificate courses of reputed institutes accredited to Department of Electronics or Institutes affiliated to a university Courses like ICWA, CA, CFA, etc.
  • Courses conducted by IIM, IIT, IISc, XLRI, NEFT, etc.
  • Other courses leading to diploma, degree, etc. conducted by colleges, universities approved by UGC/Government/AICTE/AIBMS/ICMR etc.
  • Courses offered by National Institutes and other reputed private institutions.
  • Regular Degree/Diploma courses like Aeronautical, Shipping, Pilot training, etc., approved by Director General of Civil Aviation/Shipping. Under Graduation courses like B.A., B.Com., B.Sc., etc.

2. Student Loan Eligibility

  • Prolific Academic Records
  • Avoid backlogs in academic records
  • Gap years/ Gap in your course duration
  • Work experience if any
  • Degree level

3. Eligible expenses Students are eligible to take an education loan for all the below mentioned expenses

  • Tuition fees
  • Living expenses
  • Food expenses
  • Travel expenses
  • Examination fee/Laboratory fee/Library fee
  • Expenses for books, uniform, laptop, and other equipment

4. Documents required 4.1 Basic documents for Applicant (student) and co-applicant and/or Guarantor

  1. Proof of identity –PAN Card (and Passport of the student)
  2. Proof of Residence – Voter ID Card/ Passport/ Electricity Bill/ Telephone Bill/ Ration card/ Bank account statement/ Aadhar. (2 different proofs if current and permanent residence is different)
  3. Bank account statement for the last 6 months (Personal/ Salary). For co-applicant, it should show the salary credits if salaried or 1 yr business transactions if self-employed.4. Personal Asset & Liability Statement

4.2 Applicant academic documents

  1. Education marksheets and certificates- 10th, 12th, Degree
  2. Proof of admission for the course (should be evidencing total duration of the course)
  3. Fee structure (i-20 for US if available)
  4. IELTS/GMAT/GRE Scorecard.
  5. University Ranking print-out

4.3 Co-applicant Income documents 4.3(a) If Salaried

  1. Latest Salary slips (for last 3 months)
  2. Form 16 of last 2 yrs.
  3. Employers ID card
  4. ITR of last 2 yrs

4.3(b) If Self-employed

  1. ITR of last 3 yrs
  2. Last 3 yrs Balance sheet and Profit & Loss account (only if self-employed)
  3. Proof of Business address

5. Collateral or security Upto 7.5 Lakhs, Parents or Guardian is required as a co-borrower but no collateral security or third party guarantee is required. For loans above 7.5 lakhs, collateral is necessary and Parents or Guardian is required as a co-borrower.6. Loan margin Upto Rs 4 Lakhs – No loan margin Above 4 lakhs -5% for studies in India, 15% for studies in Abroad 7. Rate of interest

Interest rates For Male For Females
Loans above 4 Lakhs 9.30% 8.80%
Loans between 4 Lakhs to 7.5 Lakhs 9.30% 8.80%
Loans above 7.5 lakhs 9.30% 8.80%

Note: 0.50% concession is given in interest rate for female candidates and also students can avail of 0.50% concession by utilizing SBI Rinn Raksha Scheme.8. Repayment Period The tenure of an Education loan in SBI consists of the duration of the study, grace period after the study, and the repayment period.
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Can I take student loan by myself?

Can I get Education loan without Co-applicant? ‘Yes, you can get an education loan but without a financial co-applicant not without a primary co-applicant!
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What happens if one Cannot pay education loan?

FAQs – How to repay an education loan? – Education loan repayment is not an extensive process. You can contact your bank manager or lender, who will note your account details and start your repayment on an auto deduction mode. How do I get education loan? – You can get education loan from banks and digital lenders.

Some of the banks offer lowest education loan interest rates, You also have education loan for CA students as directed by ICAI. What happens if you cannot pay an education loan? – If you cannot repay your education loan, you will get notices and warnings from your lender. If you fail to comply with them, you will be declared a defaulter.

It will be then tough for you to secure any other kind of loan for a considerable time. What happens if I don’t pay my education loan in India? – If you do not pay your education loan in India, the lender will start sending notices to you and your guarantor, if there is one. Or Click Here to Apply for Instant Personal Loan from the PaySense Website.
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Can I get 25 lakhs education loan without collateral?

Basic Criteria for Educational Loan One of the most vital questions that you may wonder about is the amount of the educational loan. In general, you can get up to 4 lakhs of educational loan for higher studies without any collateral. Under education loan scheme, you can get a maximum of 15 lakhs for studies in India and more 25 lakhs for abroad studies.

  • When you take education loan up to 4 lakhs, only the student and the parent have to sign the document and no collateral are necessary.
  • However, if your loan amount is between 4 lakhs and 7.5 lakhs, you will have to provide third party guarantee to the bank.
  • If the loan is above 7.5 lakhs, you will have to furnish the bank with collateral documents.

These are documents of any securities like NSC which the bank can sell to recover the amount if you fail to pay. How to apply for an educational loan for higher studies? In order to apply for an educational loan, you will have to prepare a number of documents beforehand.

The process goes as follows: Once you have determined to study at an institution and completed the process of admission, then you will have to concentrate on taking out an educational loan. Here are the documents which you should keep ready: You will have to provide a proof of admission to the selected recognized institution.

Proof of your consistently high academic performance along with the last mark sheet will need to be produced. The cut-off marks generally differ from general students to reserved students. You need to produce a schedule of fees. Depending on the amount that you are applying for, you will need to produce income statement, statement of assets and liabilities etc.

  • If you are going to study abroad, you need to produce your passport with a valid visa also.
  • Your education loan will cover a number of things in addition to your tuition fees.
  • These include hostel fees, exam fees, library fees, purchasing books, travel and other expenses for educational projects.
  • After all the documents have been submitted and verified, you will have to appear for an interview.

It is best to know as much as possible about the course and the institutions that you have chosen. It takes around 15 days for an educational loan to be sanctioned. Once it has been sanctioned, you will get a promissory note which you will have to sign.

  • In most cases, banks pay the institution directly and or to you.
  • You should check the repayment clause.
  • In most cases, repayment starts six months after the end of the course or as soon as you get a job – whichever comes earlier.
  • Interest rates on educational loans depend on a number of factors.
  • In general, they vary between 10% and 15% rates of interest.

You can claim tax deduction on the interest of the education loan. However, no deduction can be claimed on the principal. : Basic Criteria for Educational Loan
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Can I get 15 lakhs education loan without collateral?

Collateral Required for Education Loan 10 lakh for programs in India and Rs.20 lakh for programs abroad. According to the rules, collateral security is not needed for loans up to Rs.4 lakh.
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Can I get 3 lakhs education loan without collateral?

Looking for an education loan without collateral? Here’s how to avail one An education loan is the easiest way to fund your higher studies. With several sources to get an education loan, it is equally difficult to choose one that will cover the cost without the need for collateral, since several borrowers do not own collateral or it is not eligible as per the lender’s criteria.

  1. In such a case, students can opt for an education loan without collateral from Indian lenders.
  2. Here are some of the frequently asked questions answered for students hoping to get an education loan without collateral How to get an education loan up to Rs 7.5 lakh without collateral? The Government of India launched a Credit Guarantee Fund Scheme for Education Loans (CGFSEL) to help students get an education loan of up to Rs 7.5 lakh without any collateral and third-party guarantee.

The credit risk guarantee fund scheme provides a guarantee on education loans given by banks under the Model Education Loan Scheme of the Indian Banks’ Association. Read | Students can apply for the loan under this scheme if they belong to the Economically Weaker Section (EWS) category, and the family income is less than Rs 4.5 lakh.

Students are eligible under this scheme even if the loan amount they require is more than the amount stipulated in the same. Features of this scheme that students should be aware of: 1. Eligible students get a subsidy on the loan amount of up to Rs 7.5 lakh.2. The subsidy is valid during the course period and the moratorium period only.3.

Students can avail of this subsidy only once in their lifetime.4. Aspirants have to submit income proof.5. The lending institution can charge a maximum interest of 2 per cent per annum above the base rate on loans under this scheme. How to get an education loan of more than Rs 7.5 lakh? There are several lenders in the market that provide education loans without collateral to study in India and abroad.

Public banks offer loans without collateral only up to Rs 7.5 lakh. However, private banks and Non-Banking Finance Companies (NBFCs) have numerous without-collateral loan products that cover the cost of education up to Rs 75 lakh. Also read | Some salient features of loans without collateral: 1. The loans without collateral cover a wide range of courses, colleges, and countries as opposed to loans with collateral.2.

The interest rate starts from 10.5 per cent, and can go up to 14 per cent.3. Any student without collateral to pledge can apply for an education loan as long as they can arrange for a co-applicant to co-sign the loan.4. Almost all loans without collateral come without a holiday period.

The interest charged during the study period has to be paid by the co-applicant fully or partially depending on terms and conditions. To be eligible for a loan without collateral, students should – — Arrange a co-applicant with sufficient income to take on the liability of paying the interest/partial interest amount during the study period.

— Have a good academic record and should be attending a university on the lender’s list of pre-approved universities. These universities are shortlisted by the lender, based on the employment opportunities after graduation. Also read | Apart from this, the co-applicant needs to submit income proof, such as the ITR of the last two years, bank statements, and salary slips.

  1. If the co-applicant is self-employed, they will have to submit further business documents, such as the P/L statements and GST registration.
  2. The process to apply for a loan without collateral is to approach a lender after performing due diligence about the lender and the loan product.
  3. Fill in the application form and submit the required documents.

Since these loans do not come with the requirement of collateral, the document list is short and so is the processing time. Finding the right loan product confuses students as the market is flooded with lenders promising to offer the best ‘without-collateral’ loan product in the market.
View complete answer