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Are you planning to fund your overseas education with the help of an unsecured education loan? If that’s the case, you have landed at the right place as here we are going to talk about certain checkpoints that should be kept in mind at the time of applying for an unsecured education loan. But first, let us briefly understand the term unsecured education loan.
Unsecured Education Loan: A type of education loan that doesn’t require any type of collateral against the loan amount. The loan is approved by the financial institution based on the credit worthiness of the borrower and the co-applicant.
Things to be taken into consideration
Here are few parameters that should be taken into consideration for a loan for higher education abroad:
- Unsecured education loan is available for the programs in the study areas like science, technology, mathematics, engineering, and management-related programs.
- When it comes to secured education loan, the annual income and the CIBIL score of the co-applicant plays an important role.
- If students are applying for loan at the NBFC, they should know that the NBFC funds the program only for the third and fourth years. So, students should ensure that they are all covered to pay for their tuition fees in the first and second years.
- The co-applicant should have a house in his/her name.
- The co-applicant CIBIL score should be above 700 with strong credit history.
- The co-applicant should not be more than 28 years of age.
- The co-applicant should not have any type of loan on himself/herself.
- The co-applicant’s residence should come under a serviceable area.
Academic Criteria to apply for Unsecured Loans
Applicant must fulfil the following pre-requisite to apply for an unsecured education loan:
- Applicant should have a decent academic record with percentile in the first class.
- Ideally, applicants should not have any backlogs however up to 8 backlogs are accepted depending on the qualification.
- Applicant must score more than 300 and 90 in GRE and TOEFL respectively.
There should not be an academic gap ITR Conditions to Fulfil
- Parents’ annual income should be more than 35,000 per month.
- Combine annual income of both the parents should be more than 5,00,000.
- In case of any household business, that should be registered.
- Loan can’t be sanctioned if the parents’ source of income is via agriculture or rent.
So, this was a brief about unsecured education loans. We hope that through this article, we were able to resolve your queries and help you out.
An unsecured Education Loan is surely a great option to fund one’s overseas education as it has multiple benefits like less paper work and a lot more.
If you wish to explore more funding options for your higher education, do get in touch with our loan experts and apply study loan for abroad studies. We help students right from choosing the right loan option according to their requirements and profile to the loan disbursement process. Book a free consultation today!