Unsecured education loans, as the name suggests, are loans in which the applicant doesn’t need to put any collateral as security to the bank for the loan amount. The probability of such loans getting such loans depends on the co-applicant’s income, college, country, and several other factors. These loans become a saviour when the student doesn’t have any assets to pledge as a security to the lender.
Merits of Unsecured Education Loan:
Loan Amount: Up to INR 40 lakhs can be sanctioned under unsecured loans from Indian lenders. Though it depends from profile-to-profile, exceptions are possible.
Rate of Interest: Based on individual records the interest rate ranges between 10.50% p.a. -18% p.a. and it is floating in nature.
Processing charges: Depending on the amount sanctioned the processing charges can be 1% to 2% of the loan amount.
Margin amount: None! Lenders can account for up to 100% of the expenditures.
Loan Duration: This can be between 8-10 years. May be extended for special cases.
Prepayment amount to be paid: These are as per the RBI guidelines.
Repayment of loan: Repayment of the principal sum begins after 6 months of program completion or at the beginning of the job, whichever is earlier. Only simple interest to be paid till then.
Processing time: Maximum processing time is 2-5 days. (only if the documents submitted are in order). Also, it depends on the lender. For instance, an Auxilo education loan can be approved within 2-3 working days after the documentation.
No Margin amount: – lenders education loan provides 100% handling of costs apart from training fees counting lodging, travel expenses, and safety deposit or refund amount. So, it is possible to finance education and related costs without spending a dime.
Quick sanction if urgent: In case of a short deadline the loan can get approved by remitting the fee and procuring a VISA. lenders will get a special team on board and sanction the loan before time.
Customized Loan Solutions: Things like loan duration, payment during the moratorium, approval from lenders can be customized as per the borrower.
Digital Process: Lenders’ online document upload facility saves energy, time, and labour. It ensures the borrower is away from the ordeal of handling loads of paperwork.
Online Management Post Disbursement: Post loan disbursal, education loans can be managed online. Whether it is a detailed list of all transactions, rate of interest, and EMI repayments. It maintains a coherent record and ensures transparency.
Documents Required:
- From an applicant
- Aadhar, PAN card
- Academic records like SSC, HSC, Graduation, etc.
- Valid passport
- From a co-applicant
- Aadhar and PAN card
- Documents showing income like pay-slips, Form 16/ITR,
- Bank Statements for last 6 months
Choose your loan product smartly. You can also take help from any education loan counsellor to get the best advice and help in getting an abroad education loan. Companies like GyanDhan can help you from the application to the disbursement of the loan amount. Do not wait any longer! Contact them and get funds to fulfil your study abroad dreams.
