A new chapter has opened in the domain of education financing, ushering in an era where the pursuit of higher studies is no longer encumbered by the intricacies of collateral requirements or the necessity for a co-applicant. This blog explores the straightforward and empowering nature of education loans that deviate from traditional norms. In contrast to Indian banks and NBFCs that demand collateral or a cosigner, international lenders stand out by providing funding of up to 100,000 USD without these prerequisites. Let’s delve into the process of securing an education loan without co applicant.
Different lenders for education without co-applicant
Two main lenders stand out when it comes to providing education loans: MPOWER Financing and Prodigy Finance. Now, let’s take a closer look at each of them, one at a time.
Education loans without co-applicant by Prodigy Finance
Prodigy Finance is a financial technology platform from the UK that offers education loans for graduate programs at specific universities or colleges. To get a loan, students need to first get accepted into one of the colleges listed by Prodigy Finance.
Here are the key details about Prodigy Finance education loans:
- Maximum Loan Amount: Covers all your study costs, up to 100%.
- Interest Rate: Can vary, ranging from 12% to 14%.
- Interest Rate Type: It’s a floating rate, meaning it can change.
- Admin Fee (Processing Fee): You’ll pay 5% of the loan amount as a processing fee.
- Processing Time: They process your loan quickly, usually within 7-10 working days, especially when working through GyanDhan.
- Moratorium Period: You get a break starting from your course years, plus an extra 6 months.
- Margin Money: You don’t need to contribute any initial money.
- Repayment Tenure: You have flexibility, with repayment terms stretching up to 20 years.
Education loans without co-applicant by MPOWER Financing
MPOWER Financing, operating as a public-benefit corporation since 2014, has been offering education loans to students from around the world. They provide loans for both two-year undergraduate and graduate programs at the colleges they’ve listed.
Here are the details for MPOWER Financing education loans:
- Maximum Loan Amount: You can get up to $100,000 USD per year, with an annual limit of $50,000 USD.
- Interest Rate:
- 12.99% for graduate programs.
- 13.99% for undergraduate programs.
- Interest Rate Type: It’s a fixed rate, meaning it stays the same.
- Interest Rate Incentive: If you set up auto-pay, you get a 0.25% discount.
- Processing Fee: They charge 5% on each disbursement (money sent).
- Processing Time: It usually takes 7-10 working days for processing, especially if you go through GyanDhan.
- Moratorium Period: You get a break starting from your course years, plus an extra 6 months.
- Margin Money: You don’t need to put any money upfront.
- Repayment Tenure: You have a relaxed 10-year period to pay it back.
How do international lenders operate education loans?
Securing an education loan without a co-applicant hinges largely on the chosen college, country, and the student’s academic history. Lenders offering loans without a co-applicant have a set of approved institutes and courses. The specific institute and course selected can impact loan details such as the loan amount, interest rate, repayment terms, and other variables. You can see the list of MPOWER Financing approved institutions here.
Documents required for education loan without co-applicant
Typically, your education loan application is backed up by documents on your and co-applicant identity and the collateral validity. Since international lenders do not require a co-applicant, the documents you need to submit include your eligibility.
The documents for education loans without collateral and co-applicant are listed below:
- Resume or CV
- Home address proof
- Entrance test scores (GRE, GMAT, IELTS, TOEFL, etc.)
- Admission letter
- Previous academic records
- Estimated cost of attendance
- Passport
- Secondary photo ID from home country
- Supporting documents of external funding
- Visa documents
- Student’s identity and address proof
- School admission proof
- Credit report
- Job offer (if employed)
- Savings or family contribution proof to fund studies (if any)
- Other sponsorship/scholarship confirmation document
Benefits of education loan without co-applicant
Many deserving students face financial barriers to pursue education abroad, as traditional education loans often come with limitations, hindering their potential. While obtaining a loan is straightforward with collateral, the process becomes complicated when seeking one just without a co-applicant or asset backing. Even with a co-applicant, stringent criteria and the necessity for a close relative pose challenges. International lenders offering student loans eliminate these hurdles and bring added benefits.
- Loans sanctioned within a week, no cosigner or collateral needed.
- Minimal online paperwork, no need to visit branches, saving time and energy.
- Fewer documents required compared to approaching lenders directly.
- Loan amount credited directly to the college, easing financial burden on students.
- University profile influences interest rate and loan amount for meritorious students.
- Loans authorized through established legal channels, ensuring no risk of deception.
- Visa support document available for I-20 application if required.
Now that you know that there is a way to get an education loan without collateral and co-appincat you can plan your abroad education journey effectively. Make sure you understand the process and the terms and conditions of the loan before proceeding with international lenders. It is recommended that you look at the list of institutes and courses by these lenders so that you can target the university that aligns best with your and the lender’s criteria.
