Education loan is the most convenient way to pursue higher education without having to worry about your financial status. Students can, even if they are unable to afford it at present, finish their education with the help of an education loan. A loan for education helps educated people live up to their true potential by taking their future earning potential into account.
Many students aspire to get into their dream college or pursue higher education from a reputed institute. In this costly world, a situation made worse by high education inflation, many of your parents may find it challenging to support your education as the economy suffers in the present situation.
82% of the 38,108 students surveyed by a professor from the Indian Institute of Technology-Bombay (IIT-B) said they anticipated having trouble paying for their education, while 27% said their chances of continuing education in the academic year 2020-21 were either low or very low.
Of the respondents, 73% said they would need to provide for their families financially. The survey aimed to understand students’ perception of four issues — economic hardship on students, online education, reopening of colleges and new academic year, and students’ perception of their degree courses.
This illustrates multiple benefits associated with Education Loans, making them the apt choice for funding your education. Whether you wish to take a management degree or engineering, an education loan could be the answer. Varthana offers India’s best education loan without collateral.
What is an Education Loan without Collateral?
A loan without collateral is where the borrower is not required to pledge specific valuables or property as security to the lender against the borrowed amount. Instead, they have to meet certain criteria set by the lending institution like course, university etc.
Even if your parents have financial constraints, 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 collaterals.
Benefits of taking an Education Loan without Collateral
Let’s check out a few benefits of considering an education loan without collateral for funding your studies:
Continue your education without financial stress
A post-graduate degree from a prestigious institution can serve as a solid foundation for a thriving career and life but given the high costs and rising expenses, it may be difficult for you to fund your own higher education. This is where an education loan can help. Use it wisely to achieve your goals without financial stress. Not only are education loans available for higher education, but they are also available for graduate-level studies.
Education loan covers almost everything
Education loans are easily accessible to a majority of the population due to their availability from multiple sources. These loans cover both academic and non-academic fees such as tuition fees and living expenses including hostel fees, exam fees, library charges, lab fees etc. The loan also covers the cost of books and travel.
It is Cost-effective
Education loans typically have lower interest rates than other types of loans. Find loans with the best interest rates to make repayment easier, as well as preferential rates for top-ranked universities and institutes. To make loan repayment as simple as possible, lenders provide a variety of collateral and co-borrower options.
Get a loan easily
Usually, collateral is not required for a loan up to Rs 5 lakh. In some cases, if you get admission into a reputed institution, like one of the IIMs, banks may not ask for collateral even for loans of higher amounts. If the collateral is required, it can be in the form of property or a fixed deposit, among other things.
Lenders typically charge for the transaction processing and the loan can take up to two weeks to process. Depending on the fee structure and requirements, lenders may disburse the loan amount at once or in installments, either to the borrower or directly to the institution.
Achieve your dream of studying at a premier University
Dream big and choose a customized loan! People of all classes can get an education loan irrespective of their source of income. If you are seeking admission to a prestigious university, you will probably need to take out a loan. While the score is essential for admission to any reputed university, it can also help you when applying for an education loan.
Helps build financial discipline
An education loan can help you build financial discipline. Timely and regular repayment of the loan is also a way of building a good credit score, which can help you or your parent get a better deal if you need to take out formal credit later on in life, such as a credit card, auto loan, home loan, etc
What do you need to be eligible for an education loan without collateral?
Most loan providers require that the applicant be a resident of India, and students pursuing full-time courses must have a co-applicant with good credit. Furthermore, some banks have criteria based on age, the field of study, and institution type.
Considering that an education loan is one of the first major financial decisions that a person makes, one that will last for nearly six to seven years into their working lives, as a borrower, you must be aware of the course fees, documents required, scholarships, interest on any important aspects of the loan, and any processing fee associated with the loan. Students paying for their own higher education is the best possible preparation for life as an adult.