A fresh era has dawned in the realm of funding education, eliminating the complexities tied to needing collateral or a co-applicant for pursuing higher studies. This article delves into the simplicity and empowering aspects of education loans that break away from conventional practices. Unlike Indian banks and NBFCs, which require collateral or a co-signer, international lenders distinguish themselves by offering funding up to 100,000 USD without these obligatory conditions. Let’s explore the steps to obtain student loans without co-signer.
What is a Co-signer?
A co-signer is a person who agrees to take on the responsibility of repaying a loan if the primary borrower fails to do so. Essentially, they act as a guarantor, providing an additional layer of assurance to the lender. In the context of education loans, a co-signer may be required by some financial institutions to ensure the repayment of the loan in case the student borrower is unable to fulfill their financial obligations. This extra support reduces the risk for the lender, making it more likely for the loan to be approved.
Lenders Providing Loan Without Co-signer
Two prominent lenders take the spotlight in the realm of education loans: MPOWER Financing and Prodigy Finance. Now, let’s examine each of them individually, starting with MPOWER Financing.
Prodigy Finance, a financial technology platform based in the UK, specializes in providing education loans for graduate programs at designated universities or colleges. To secure a loan through Prodigy Finance, students must first receive admission to one of the educational institutions partnered with the platform.
The education loan offered by Prodigy Finance comes with comprehensive coverage, encompassing all your study expenses, providing a maximum of 100% coverage. The interest rate is variable, fluctuating between 12% to 14%, and it operates on a floating rate system, meaning it can change. An administration fee, equivalent to 5% of the loan amount, is applicable. The loan processing is efficiently handled within 7-10 working days, especially when facilitated through GyanDhan. During the moratorium period, which begins during your course years and extends an additional 6 months, you enjoy a payment break. Notably, no initial contribution, known as margin money, is required. Furthermore, the repayment tenure offers flexibility, stretching up to a maximum of 20 years.
Operating as a public-benefit corporation since 2014, MPOWER Financing has been dedicated to extending education loans to students globally. Their loan offerings encompass both two-year undergraduate and graduate programs at the colleges they have enlisted.
MPOWER Financing offers a maximum loan amount of up to USD 100,000 per year, with an annual limit set at USD 50,000. The interest rates are fixed at 12.99% – 15.99%. Opting for an added convenience, there’s a 0.25% interest rate discount if you choose to set up auto-pay. A processing fee of 5% is applicable on each disbursement, and the processing time typically takes 7-10 working days, especially when utilizing the services of GyanDhan. The moratorium period allows for a payment break starting from your course years, plus an additional 6 months. Importantly, no upfront contribution, known as margin money, is required. The repayment tenure is relaxed, providing a 10-year period for repayment.
Advantages of Education Loan without Co-signer
Numerous deserving students encounter financial obstacles when aspiring to pursue education abroad, often constrained by the limitations of traditional education loans that impede their potential. While securing a loan is straightforward with collateral, the process becomes intricate when aiming to obtain one without a co-applicant or asset backing. Even with a co-applicant, stringent criteria and the necessity for a close relative can present challenges. International lenders providing student loans address these obstacles and offer additional advantages.
Obtaining an education loan for international studies has become a more accessible and streamlined process, particularly with lenders like MPOWER Financing and Prodigy Finance. Within just a week, loans can be approved, and remarkably, there’s no need for a cosigner or collateral, making the financial support more attainable for deserving students. The convenience extends to minimal online paperwork, eliminating the necessity to visit physical branches, thereby saving valuable time and energy.
Additionally, the documentation requirements are notably reduced when compared to the traditional approach of dealing with lenders directly. This not only simplifies the application process but also ensures that students can focus more on their academic pursuits rather than navigating through extensive paperwork.
One notable benefit is that the approved loan amount is credited directly to the college, providing a direct and efficient means of financial support. This approach alleviates the immediate financial burden on students, allowing them to concentrate on their studies without undue financial stress.
The interest rate and loan amount are influenced by the university profile, providing an opportunity for meritorious students to benefit from favorable terms. Furthermore, the entire loan authorization process operates through established legal channels, ensuring transparency and minimizing the risk of deception.
For those requiring visa support, these lenders offer the necessary documents for the I-20 application, simplifying the visa application process if required. In essence, these streamlined processes and added benefits contribute to a more accessible and student-friendly approach to education financing for international studies.
Now that you are aware of the possibility of obtaining an education loan without collateral and a co-applicant, you can strategically plan your journey for education abroad. It is essential to comprehend the process and the terms and conditions of the loan before proceeding with international lenders. Consider reviewing the list of institutes and courses offered by these lenders to target a university that aligns best with your criteria and the lender’s requirements.