In the world of education money, there’s a new way that makes going to college easier. Now, you don’t need fancy stuff like collateral or someone else to sign with you. This blog talks about how you can get a loan for a school that doesn’t follow the usual rules. In India, banks and companies usually ask for collateral or someone else to sign with you. But there are lenders from other countries who can give you up to 100,000 USD without needing these things. Let’s learn how to get a abroad education loan without collateral and co applicant.
Mechanism of Loan Through International Lender
Getting an education loan without collateral and a co-applicant mainly depends on the specific college, country, and the student’s academic history. Lenders offering such loans have a set list of approved institutes and courses for which they provide financial support. The choice of college and course can impact various loan terms, including the loan amount, interest rate, repayment conditions, and more. It’s essential to note that international lenders disburse funds in foreign currency, primarily in USD. Currently, 1 USD equals 83.349 INR.
Lending options without collateral and co-applicant
In the universe of education financing, two prominent lenders stand out for offering non-collateral education loans without the need for a co-applicant: MPOWER Financing and Prodigy Finance.
MPOWER Financing, established as a public-benefit corporation in 2014, caters to international students pursuing two-year undergraduate and graduate courses at their approved colleges. The loan details include a maximum amount of up to 100,000 USD, with interest rates fixed at 12.99% for graduate programs and 13.99% for undergraduate programs. The processing fee is set at 5%, and a convenient moratorium period extends from the course years, plus an additional 6 months. Repayment spans a comfortable 10-year period.
Prodigy Finance, a UK-based fintech platform, focuses on lending education loans for graduate courses at select universities or colleges. Features of Prodigy Finance education loans cover up to 100% of study costs, with interest rates ranging from 12% to 14%. The processing fee is 5%, and the repayment tenure provides flexibility, extending up to 20 years.
Document for Submission
For both lenders, the absence of a co-applicant is a notable feature, simplifying the application process. Required documents include a resume or CV, home address proof, entrance test scores, admission letter, academic records, estimated cost of attendance, passport, secondary photo ID from home country, and supporting documents of external funding.
Benefits of MPOWER & Prodigy
The benefits of opting for education loans without a co-applicant are significant. These loans provide a streamlined process, with quick approval within a week, minimal paperwork, and the convenience of online document submission. The absence of collateral or a co-signer eliminates hurdles that traditional loans often pose. Moreover, the loan amount is directly credited to the college, easing the financial burden on students. The university profile plays a pivotal role in determining interest rates and loan amounts. Additionally, loans through established international lenders offer a secure and legal financing option.
In conclusion, understanding the process and terms is crucial before proceeding with international lenders. Prospective students are advised to explore the list of institutes and courses approved by these lenders to align their choices with criteria that suit both the student and the lender.
