Some of the advantages and benefits of abroad education loan without collateral are as below:-
- Study loan without collateral is basically for the students who may not have significant assets but they have strong academic profile, good credentials and potential.
- Study loan in this case do not require collateral, students and his/her family do not have any risk of losing assets in case they are not able to repay the loan.
- As this student loan without collateral is based on academic performance, this can motivate students to maintain high academics and good performance
- Loan approval process in student loan without collateral is fast as compared to secured loans, making funds available more quickly and efficiently, because in secured loan require asset valuation.
- Many lenders offer flexible repayment options like low-interest rates, making loan repayment to students, organizable and more manageable once they finish their course and start working.
How to choose Education Loans to Study Abroad Without Collateral?
- Your main priority should be finding education loans with lower interest rates and the necessary funding. Public Sector Banks > Private Banks > NBFC > International Lenders.
- First priority for unsecured loan should be public banks as they offer very good interest rates. But the loan amount they provide is low for unsecured education loans.
- Second priority should be Private banks because they can provide loan upto 50 Lakhs INR and that too with good interest rates.
- Students looking unsecured loan above 50 Lakhs INR then you can go for NBFCs. However their interest rate may be higher than private banks but they can provide student loan up to 70 Lakhs INR.
- International lenders can be a last option if you do not have any proper co-applicant. International lenders provide upto 100,000 USD but their interest rate will be higher as compared to any private bank or NBFC’s