How to Get an Education Loan Without Guarantor

There are two types of student loans. Loans can be classified as secured loans (loans with collateral) or unsecured loans (loans without collateral). A loan with collateral is one where the borrower gives the lender a specified amount, asset, or piece of property in exchange for the loan. In the event that the borrower is unable to repay the loan amount, this allows the borrower to obtain a loan at a low-interest rate for the long term while safeguarding the lender’s interest.  Read this article to know more about how to get a student’s education loan without a guarantor.

About Education Loan without Guarantor

Education loans without collateral, or non-collateral education loans, are obtained without giving the lender any collateral as a guarantee. In other words, applicants can submit a loan application without offering any type of security, such as a house or a plot of land. Students may borrow up to Rs. 50 lakhs for their education.

Features of an Education Loan without Guarantor

The following are some key characteristics of an education loan without a guarantor 

• Includes a broad range of courses and colleges in several nations
• The typical range of interest rates for unsecured student loans is 10.50% to 14%.
• Students may apply for this loan with a co-applicants signature.
• These loans have no grace period.

Also Read: InCred Education Loan

Types of Education Loan 

There are two types of Education loans first Secured loans and the second Unsecured Loan 

Secured Loan	Unsecured Loan
In order to obtain a loan, the borrower must pledge an item, such as a car, house, or equity, as collateral. The value of the collateral is typically used to determine the loan amount made available to the borrower.	Unsecured loans do not require any form of collateral in order to be obtained. Based on your borrower’s creditworthiness, the lender issues it to you. As a result, obtaining approval for an Unsecured Loan requires having great credit

Also Read: Secured vs Unsecured Education Loans

Bank Gives Education Loan Without Co-Applicant?

There are two different categories of lenders that offer unsecured education loans; state banks and private lenders. Here are the few banks that provide education loans without a guarantor:

• HDFC Bank
• State Bank of India (SBI)
• Punjab and Sind Bank
• IDBI Bank
• ICICI Bank
• Kotak Mahindra Bank
• Federal Bank

Eligibility Requirements 

For students to be eligible for an education loan without collateral, they must meet the following requirements:

• After all debts and costs, yearly income should exceed Rs. 4 Lakhs 
• Co-applicant’s role is very important in an education loan – He/She must have a CIBIL score of at least 700.
• Students who wish to study in the USA must have a GRE score of at least 300.
• IELTS scores for all other nations must be greater than 6 or 6.5 bands.
• The applicant’s parents must own their own residential property.

Documents Required

Education loans can pay for your airfare, tuition, living costs, textbooks, and other costs associated with studying abroad. Once you submit the completed loan application form together with all the necessary documents stated below, the lenders will quickly and easily offer you an unsecured school loan:

• KYC records
• Two pictures in passport size of the applicant and co-applicants
• Bank a summary of the past six months
• Form of Guarantor, optional
• A copy of the institute or university’s offer letter with the tuition schedule
• Certificates of completion for degree programmes, admission exams such as the TOEFL and IELTS, H.S.C and S.S.C., etc.
• Proof of the guarantor’s or co-applicants income (such as pay stubs or Form 16)

Must Read: Student Loan Forgiveness Application 2023: Process, Deadline, Status

How to Apply?

Here are a few steep that you need to follow while applying for an education loan without a Guarantor 

• Visit the Bank website and press the callback request button.
• Select the region, then click the next button. 
• Complete the form with the necessary basic information, course information, etc.
• You will receive a callback from our financial officer within 1-2 working days after submitting the inquiry.
• Your financial officer will be able to assist you in selecting the appropriate lender for you after receiving some additional information about your need for education loans.
• Your designated financial officer will send you a secure link to a site where you must upload all the necessary paperwork that the banks have listed. 
• Your financial officer will connect you with many lenders who are most suitable for your profile once all the necessary documents have been uploaded.

Also, Read: Student Loan Consolidation: Rates, Companies, Calculator, And More

Advantages of Education Loan Without Guarantor 

The advantages of student loans without guarantors are as follows:

• The student is qualified to borrow without putting up any collateral between Rs. 40 lacks and Rs. 50 lakh.
• Obtaining a loan is possible before enrolling.
• EMI payments are not necessary to make while the moratorium period is in effect.
• Higher education is subsidised in its entirety.
• Additionally, students may qualify for top-up loans.
• No penalty for early payment
• Repayment choices that are flexible
• A swift, paperless process

FAQs 

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