Here’s How You Can 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:

ParticularsDetails
Minimum Loan AmountUSD 15,000
Maximum Loan Limit80% of the cost of the course to 100% of the cost of attendance
Origination Charge/Administration FeeUp to 5% of the loan amount
Annual Percentage Rate13% and above
Rate CategoryVariable
Repayment PeriodUp to 20 years
Moratorium PeriodCourse Duration + 6 months
Prepayment PenaltiesNil
CollateralNone
CosignerNot 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:

ParticularsDetails
Minimum Loan AmountUSD 2,001
Maximum Loan LimitUSD 100,000
Expenses Covered100% of the education expenditure
Interest Rate for Undergraduate Courses13.99% (APR- 15.01%)
Interest Rate for Graduate Programmes12.99% (APR- 13.98%)
Interest Rate CategoryFixed
Repayment Period of Principal Loan AmountUp to 10 years
Interest Payment PeriodDuring the course duration and 6 months after course completion
Prepayment PenaltyNil
CollateralNone
Co-signerNot Required

FAQs

Where can I get an education loan without income proof?

Students going for abroad studies can apply for education loans without income proof at Prodigy Finance and MPOWER Financing.

What is the Prodigy Finance student loan interest rate?

This fintech company levies an APR of 13% or above on the sanctioned loan amount.

Do banks provide education loans without income proof?

No. Nationalized and private banks do not provide study-abroad education loans without proof of income.

Need financial assistance regarding studying abroad? Reach out to Fly Finance now!

About Ankita Singh

Leave a Comment

10 Best Banks in the USA for International Students Open an International Bank Account Online in 7 Steps 3 Best Student Bank Accounts to Open when Studying Abroad ICICI Bank Education Loan to Study Abroad Baroda Yoddha Education Loan to Study Abroad Top 5 Benefits of SBI Zero Balance Account for Students Eligibility Criteria for Aditya Birla Capital Education Loan to Study Abroad Auxilo Education Loan for Army Brats: Loan Details and Interest Rates Steps Involved In Canara Bank Education Loan Processing Time IBDI Education Loan Documents Required Checklist
×

Send Money Abroad in <15 mins

×

Request a callback

×

Get an education loan at the lowest interest rate

×

Thank you! Your call request has been submitted

Our team will connect with your shortly

aero Confused which education loan is the best for you?