To reduce financial burden, a student can opt for an education loan without income proof provided by private lenders like Prodigy Finance and MPOWER Financing. Additionally, nationalised banks and private banks also offer student loans without proof of income. This development opens doors for study abroad students who might not have a steady income source.
Traditionally, income proof has been a mandatory requirement for securing education loans. However, understanding the needs of students from different financial backgrounds, financial institutions and lending organizations have begun to explore alternative options.
One viable option for students without income proof is to seek the assistance of a co-signer. A co-applicant, typically a parent, guardian, or close relative, with a stable income and good credit history, can join the loan application as a guarantor.
Another potential avenue is exploring collateral alternatives. In this scenario, students may pledge assets such as property, investments, or fixed deposits as collateral security against the loan. Collateral provides security to the lender, increasing the chances of loan approval.
Private Lenders of Education Loan Without Income Proof
Here are some of the top private lenders of education loan without income proof:
MPOWER Financing
A financial technology firm called MPOWER Financing offers school loans to international and Deferred Action for Childhood Arrivals (DACA) students who are enrolled in universities in the US and Canada. They specialise in providing loans to students who may not be able to access conventional sources of funding due to their immigrant status or lack of credit history by providing loans without requiring proof of income. MPOWER evaluates applicants’ creditworthiness by taking into account elements other than typical credit/CIBIL scores, such as academic achievement and job potential.
Prodigy Finance
This fintech business provides loans to students abroad from more than 150 different countries. Prodigy Finance, a company with its headquarters in London and branch offices in Chennai (India), Cape Town (South Africa), and New York (USA), offers education loans to students pursuing graduate degrees in fields like public policy, engineering, law, and business at more than 800 universities, colleges, and schools without requesting proof of their income. The loans are determined by the student’s potential for employment rather than the applicant’s or co-signers credit histories.
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