Studying abroad comes along with a long list of expenses. Funding these expenses can become a financial hurdle for students. Among the number of funding options available taking an education loan is a good funding option to overcome this hurdle.
However, taking an education loan is a process that involves various aspects and loan eligibility. One important aspect is the co-applicant’s profile. If you are wondering why a co-applicant is so important while taking an education loan for higher studies abroad? Well, the answer to this is that the co-applicant is the person who will be responsible for loan repayment if the applicant fails to repay the loan amount.
In most cases, the loan co-applicant is usually the parent of the applicant. So, the parent’s profile is of prime importance while applying for a loan. While considering taking a loan, not every parent has a strong financial profile to be eligible for being a financial co-applicant. In such a scenario, taking an overseas education loan without parental income can still be possible. This article will give you all the necessary information pertaining to an overseas education loan without parental income.
Keep Reading to know more about this!
In an overseas education loan, Co-applicants are of two types: Primary Co-applicant and Financial Co-applicant. If the parent has no income options, they can be a primary co-applicant but then another person will be required to be a financial co-applicant.
Having a financial co-applicant is the most suitable alternative if there is no parental income to prove. To meet the loan application requirements, Parents, Parents-in-law, Siblings, Parents Siblings, Spouse, and First cousins will be accepted as financial co-applicants by most financial institutions.
Now that you are aware of the concept of no parental income and the alternative option for this situation, let us proceed to comprehend the details of the financial institutions that provide education loans without parental income. Read carefully so that you can choose the most appropriate financial institution for yourself.
A leading nationalized bank and one of the largest providers of secured overseas education loans in India, SBI provides overseas education based on the project cost of the loan. With this bank, you can get a secured loan of up to Rs 1.5 cr and more if the cost of education is more than Rs ? 1.5 cr and the security pledged is more than the cost of education.
In such a situation, the applicant will be granted an overseas education loan based on collateral security. The loan will be sanctioned with an average income of the co-applicant.
One of India’s largest government-owned banks, UBI has recently launched “Special Union Education Loan Schemes for Premier Institute Abroad Studies.” Under this scheme, the applicant will be eligible for overseas education loans without Parental Income if the applicant is studying in any of the top 159 premier institutes listed by the bank.
The applicant can get a collateral-free loan of up to Rs 40.00 lakhs and a collateral loan for above Rs 40.00 lakhs. No income criteria are required for this scheme.
India’s leading private sector bank, ICICI bank provides education loans without parental income. This bank solely provides education loans based on the student's academic profile, job profile, and salary package.
On the basis of previous work experience and the student’s ITR proof, the student can easily get a loan amount of up to Rs 50.00 lakhs. Only the basic documents of the parent will be required during the loan application process.
A leading Non-Banking Financial Company (NBFC), Avanse Financial Services Limited is a renowned name for providing unsecured overseas education loans up to Rs 50 lakhs. This loan is sanctioned based on the GRE score of the student for the USA. So, the student is eligible for unsecured overseas education loans if the GRE score is above 300+.
No parental income proof is required but the applicant will need to submit 6 months’ bank statement proof while applying for the education loan. 100% funding is offered with Avanse.
International lenders are the best funding option for countries like USA and Canada. These financial institutions provide unsecured or collateral free education loans for abroad for applicants as per their profile and eligibility. If there is no proof of parental income, then the applicant can enlist any third person’s documents and ITR for the loan application. A 100% funding option is given by international lenders.
Some of the leading International Lenders in India are given below.
• MPower Finance
• Prodigy Finance
• Leap Finance
Now that you know the financial institutions that provide overseas education loans without Parental Income, you can shortlist any of these loan providers to get an education loan.
So, even after skipping an important document, you can still get a successful loan sanction for your overseas education.
Furthermore, if you want to get guidance from an experienced education loan advisor, then you are at the right place. We at ÉLAN assist students to find the right financial institution and help with the entire documentation and application process.
Get the best services at ÉLAN with zero service charges. Reach out to us and start your loan application process today!