How to Get an Education Loan Without Income Proof?

It can be challenging to obtain an international education loan without income proof as most lenders require some form of income verification to ensure that the borrower is capable of repaying the loan. However, some student loan options are available for study-abroad students. Microfinancing companies and fintech firms like Prodigy Finance and MPOWER Financing offer financial assistance without any proof of income to help students seeking to pursue higher education but are unable to get loans from banks and non-banking financial companies (NBFCs). These loan providers lay their faith in the earning potential of students and do not consider their credit scores.

Education Loan without Income Proof in India

Getting a loan without income proof in India can be difficult as most banks and financial institutions require borrowers to provide income documents to prove their ability to repay the loan. However, there are a few options available for those who do not have income proof, such as:

Secured loans: Secured loans are backed by collateral, such as property or gold. If you have a valuable asset, you can use it as collateral to secure a loan even if you don’t have income proof.
Co-signer: If you have a family member or friend with a stable income, they can co-sign the loan with you. This means that they will be equally responsible for repaying the loan if you cannot make payments.
Fintech Companies: These institutions provide small loans to people who do not have access to traditional banking services. They usually do not require income proof and may be more flexible in their lending criteria.
Peer-to-peer lending: Peer-to-peer lending platforms bring together beneficiaries with individual lenders who are ready to lend funds. These lenders may be more willing to lend to borrowers without income proof, but they may charge higher interest rates.

However, it is imperative to note that obtaining a loan without income proof can be risky, as it may lead to default and further financial difficulties. It’s always a good idea to explore other options first, such as finding a job or starting a business, before resorting to taking on debt.

Also Read: SBI Education Loan for Studying Abroad without Collateral

Providers of Education Loan without Income Proof

Some of the leading providers of education loans without income proof are microfinance institutions like MPOWER Financing and Prodigy Finance.

Prodigy Finance

This fintech company offers loans to international students from more than 150 nationalities. Headquartered in London and with branch offices in Chennai (India), Cape Town (South Africa), and New York (USA), Prodigy Finance provides education loans without income proof to students who are pursuing graduate degrees in domains like Public Policy, Engineering, Law, and Business in over 800 universities/colleges/school. The loans are based on the earning potential of students and not on the credit history of candidates or co-signers.

Tabulated below are the details of Prodigy Finance for students planning to study abroad at some of the top universities in the world:

Particulars	Details
Minimum Loan Amount	USD 15,000
Maximum Loan Limit	80% of the cost of the course to 100% of the cost of attendance
Origination Charge/Administration Fee	Up to 5% of the loan amount
Annual Percentage Rate	13% and above
Rate Category	Variable
Repayment Period	Up to 20 years
Moratorium Period	Course Duration + 6 months
Prepayment Penalties	Nil
Collateral	None
Cosigner	Not Required

Must Read: Top Private Student Loans for Abroad Education

MPOWER Financing

MPOWER Financing is a financial technology company that provides education loans to international and Deferred Action for Childhood Arrivals (DACA) students studying in the United States and Canada. They specialize in offering loan without income proof to students who may not have access to traditional forms of financing due to their immigration status or lack of credit history. MPOWER considers factors beyond traditional credit/CIBIL scores, such as academic success and career potential, to assess the creditworthiness of applicants.

The table below contains key details of MPOWER international education loans:

Particulars	Details
Minimum Loan Amount	USD 2,001
Maximum Loan Limit	USD 100,000
Expenses Covered	100% of the education expenditure
Interest Rate for Undergraduate Courses	13.99% (APR- 15.01%)
Interest Rate for Graduate Programmes	12.99% (APR- 13.98%)
Interest Rate Category	Fixed
Repayment Period of Principal Loan Amount	Up to 10 years
Interest Payment Period	During the course duration and 6 months after course completion
Prepayment Penalty	Nil
Collateral	None
Co-signer	Not Required