Education loans without collateral and co-signer can easily be availed these days from banks and NBFCs. Financial institutions help you secure funds for higher education abroad if you cannot pledge an asset or do not have a co-applicant.
International lenders like Prodigy Finance and MPower Financing offer no collateral and no co-signer education loans up to INR 75 lakhs or more based upon the requirement. However, they have higher interest rates due to the high risk with the lenders. Let’s explore the major features and details that can help you secure these loans successfully.
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Can I Get Education Loans without a Co-Signer and Collateral in India?
Banks and financial institutions in India usually require a co-signer before lending funds for higher education abroad. A co-signer is a person who takes full responsibility for the loan amount that you take from the bank. They may be a family member or a close friend with a good credit score who must be willing to help you.
On the other hand, education loans without collateral offer funds without mortgaging an asset. Public banks provide collateral-free loans up to INR 7.5 lakhs. With private banks, you can avail of funds up to INR 1 crore, but you may still be required to apply with a co-signer.
This means that Indian banks and NBFCs do not offer a combination of no collateral and no cosigner education loans in India. However, Indian students can easily get education loans without collateral and co-signer with international lenders.
Also Read: Check out this blog to know the details of what happens to education loan if the borrower dies.
No Collateral No Cosigner Education Loan Providers
You can apply for no collateral no co-signer education loans with international lenders like Prodigy Finance and MPower Financing. They neither require a co-signer to take the loan responsibility nor the collateral/ security. You also get access to multiple benefits like free-of-cost visa assistance and unconditional loan offer letters.
| List of Lender | Details |
| Prodigy Finance | -Postgraduate No Collateral No Cosigner loans available -Loans ranging from USD 10,001 to 100% costs of education -Interest rates 11.50% p.a onwards |
| MPower Financing | -No Collateral No Cosigner education loans to study in the US or Canada -Quick conditional loan offer -Offers free visa support, pre-qualified US credit card and bank account |
| Quoran Federal Credit Union | -Loans up to USD 75,000 for eligible students -Choose repayment terms of 20 or 25 years -No need for a co-signer or collateral |
| Fly Finance | -Connects you with international lenders for no collateral no co-signer education loans -Negotiates on your behalf and gets you the most attractive interest rates -Loans processed within 24 hours- Zero service fees |
Prodigy Finance
Prodigy Finance is a UK-based financial technology company that provides education loans for international students studying for graduate degrees.
International students, including students from India, can apply for a Prodigy Finance education loan without collateral and co-signer under their Prodigy Finance Fall Campaign 2024. Fulfiling the eligibility criteria is important-
- You must be admitted to a school/ university and program supported by Prodigy Finance.
- You must study post-graduate courses abroad.
- You must reside in one of the countries supported by Prodigy Finance. India is on the list, so aspiring Indian students can easily apply for these loans.
The loan amount ranges from USD 10,001 to up to 100% costs of your education abroad. The interest rates range from 11.50% to 14% p.a and you can repay the loans for up to 20 years. Head to their official website to apply online.
MPower Financing
MPower Financing is another international lender that offers no collateral no co-signer education loans to study in the US and Canada. International students, refugees, asylum seekers, and DACA recipients are eligible to apply for the loan.
The loan limit ranges from USD 2,001 to USD 100,000 at fixed rates of interest. A discount of 0.25% is offered to students to opt for automatic payments on loan repayments.
- International students planning to be admitted to one of 400+ approved US schools or universities are eligible for no collateral no co-signer education loans from MPower Financing.
- The MPower Financing education loan to study abroad covers 100% expenses of education abroad, including living expenses.
- You get access to multiple benefits like free visa support, a pre-qualified US credit card and bank account, a job search tool, a resume builder and an F-1 eligible job directory.
Quorum Federal Credit Union
Quorum Federal Credit Union is a US-based cooperative bank in Harrison, New York. They offer a wide range of banking services, including no collateral no co-signer education loans to international students planning to study in a recognized university in the US.
The loan amount is up to USD 75,000 for eligible students which covers various educational expenses, including tuition, books, and living costs. The interest rates range from 11.25% to 12.25% APR.
- You can apply without being a member initially. However, you must become a member of the Quorum Federal Credit Union to receive funds.
- You must be enrolled in an approved degree program at a recognized institution in the US.
- You need to complete the application form through their official website.
Fly Finance
Fly Finance is a service platform in India that can help you with no collateral no co-signer education loans to study abroad. The maximum loan amount depends on your requirements and expenses, which will cover the 100% costs of education abroad.
They are partnered with international lenders, including Prodigy Finance and MPower Financing to help you with education loans without collateral and co-signers at competitive interest rates.
- You get a dedicated loan expert to understand your loan requirements.
- You get the best interest rates starting from as low as 9.25% p.a. and loans processed in as little as 24 hours.
- Loan services are offered at zero service cost.
Also Read: Planning to pursue law? Know all about education loans for master’s in Law in the UK and check out the top banks, features, and interest rates.
Benefits of Education Loan Without Collateral and Co-signer
One of the biggest benefits of applying for no collateral no co-signer education loans is that they provide you with funds if you do not have family members willing to act as co-signers. You can also focus on studies without the added pressure of securing collateral. Other benefits include-
- Lesser documentation work
- No branch visits required
- The loan amount is directly disbursed to the university
- Access to free visa support, credit cards from the best international banks, and an unconditional loan offer
Despite these benefits, make sure to weigh the disadvantages as well. The interest rates for these loans tend to be higher, often calculated in USD, which can lead to significant fluctuations in repayment amounts due to currency conversion.
Eligibility Criteria & Documents Required
To qualify for no collateral no co-signer education loans, you must demonstrate strong academic performance and secure admission to an eligible institution. Specific eligibility criteria may vary by lender but generally include fulfilment of various conditions-
- You must secure admission to a recognized university abroad.
- You must have a solid academic record.
- Some lenders may also consider work experience, particularly for larger loan amounts.
Here are the key documents required for education loans without a cosigner or collateral, primarily from international lenders-
- Passport copy or other ID proof
- Proof of residential address (utility bill, rental agreement, etc.)
- Credit report
- Proof of savings (if required)
- University admission offer letter
- Proof of enrollment in an eligible course at a listed institution
- Budget on how you plan to split the cost of your course
- Current annual gross income (if employed)
- The sum of existing liabilities and liquid assets
- Proof of any scholarships granted by the school
- Bank statements indicating savings for the initial study period
This was all about no collateral no co-signer education loans to study abroad. MPower Financing and Prodigy Finance are two of the major lenders offering student loans. They focus more on the student’s academic profile and future earning potential rather than collateral or co-signers.
FAQs
Yes, it is possible to get education loans without a co-applicant or collateral, primarily through international lenders like MPOWER Financing and Prodigy Finance.
Co-signer takes full responsibility for the loan amount that you take from the bank. Indian banks require a co-signer for education loans, however, you can apply for no-signer education loans with international lenders.
International lenders like Prodigy Finance and MPoer FInancing offer education loans without requiring collateral or a co-signer for eligible students.
You must be enrolled in an eligible course at a recognized institution abroad. The course, country and university should fall in the supported list issued by the lender. You must also have a good academic record.
Documents required usually include a passport, admission letter, proof of address, academic transcripts, and sometimes proof of savings or income.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
