Tips for improving your chances of getting a non-collateral loan for education

Tips for improving your chances of getting a non-collateral loan for education

Home - Education loan - Tips for improving your chances of getting a non-collateral loan for education
non collateral education loan

Millions of students are now opting for non-collateral education loans as a convenient way to finance higher education, especially if they don’t have the financial resources to pay for college or university costs upfront. It is convenient because this type of loan does not require any type of collateral, such as a house or car, to be used as security for the loan. 

According to data from the Reserve Bank of India, as of March 2021, the total amount of non-collateral education loans disbursed in India was approximately Rs. 10,853 crore and the number of non-collateral education loans disbursed was approximately 2.73 million.

Students today want to attend a college with a strong reputation for academic excellence. This can be a major factor in deciding their future career prospects and opportunities. Attending a highly ranked or prestigious college can be seen as a status symbol and a way to differentiate themselves from others in the job market.

The cost of attending a dream college is higher, and the expenses of tuition, hostel and others can quickly add up, making it difficult for many students to afford the costs of attending a prestigious university.

There are several ways to help you offset the costs of attending a dream college. One of the safest options is to apply for a non-collateral education loan, which can help cover some of the expenses of tuition and other costs. Education loans can provide a way for students to finance their education and achieve their dreams of attending a prestigious university.

Also Read: 5 Best Tips To Get The Best Education Loan Interest Rate In India

Benefits of taking a non-collateral education loan

Here are some reasons why non collateral education loans may be a good option:

1. They allow you to focus on your studies:

With a non collateral education loan, you can focus on your studies without worrying about how you’ll pay for your education.

2. They can help you afford higher education:

Higher education can be expensive, and education loans can help you cover the costs of tuition, fees, books, and other expenses.

3. They often have favorable terms:

Education loans may have lower interest rates and more flexible repayment terms than other types of loans.

4. They may offer additional benefits:

Some education loans come with additional benefits, such as deferment options (allowing you to temporarily postpone repayment) and forgiveness programs (allowing you to have a portion of your loan forgiven if you meet certain criteria).

Even if your parents have financial constraints, non-collateral education loans allow you to study in India for a course of your choosing. Several banks and non-bank financial institutions (NBFCs) offer education loans up to a certain amount without requiring collateral or security. This is beneficial for students like you who may be limited in their ability to provide such collateral.

Increase your chances of getting a non-collateral loan for education easily. Here’s how:

1. Use a co-signer:

If you have a family member, guardian or a relative with a strong credit score and financial history, they may be willing to co-sign on the loan with you. This can help you secure the loan and may even result in a lower interest rate.

2. Build up your credit score:

A high credit score is one of the biggest factors lenders consider when evaluating an education loan application. Make sure your co-applicant’s credit score is as neat as possible because the primary borrower (you) does not have a strong credit history or neither meet the lender’s credit requirements.

3. Demonstrate financial need:

If you can show that you have a genuine financial need for the loan, you may be more likely to receive it. This can include providing proof of low income, unexpected financial hardship, or other financial challenges.

4. Show a solid repayment plan:

Again, the lenders want to know that the co-applicant has a plan in place for paying back the loan. Make sure to have a clear budget that shows how you or your co-applicant will use the loan and how it will be paid back.

5. Consider alternative lenders:

Traditional banks may have strict lending criteria, but there are many alternative lenders, like NBFCs or other financial institutions, that may be more willing to work with you. Look into online lenders, peer-to-peer lending platforms, and other alternative options to find a lender that fits your needs.

6. Shop around:

Don’t just settle for the first lender you come across. Compare rates and terms from multiple lenders to find the best deal for your needs.

Now that you know all about how to get a non-collateral loan for education easily, you should be aware that these loans can be used to pay for tuition, housing, books, and other education-related expenses. Varthana’s non-collateral education loans are a convenient and affordable option for students looking to finance their higher education. Overall, an education loan from Varthana is a safe option for funding dream colleges because it allows you to borrow the money you need to pay for your education without putting too much financial strain on yourself or your family. Apply now if you don’t want to miss out on your dream college.

Share:

Leave A Comment