An education loan is a perfect tool for pursuing academic aspirations without relying on your parents. With several costs associated with education, embarking on an academic quest can be challenging. Hence, students turn to education loans to finance their studies independently. For an NBFC education loan, do you need an education loan co-applicant, or can you get an education loan without a co-signer? Let’s discover together.
Key highlights:
- Why Students Prefer Education Loans
- Education Loan Without Co-signer – Possibilities
- Who Can Be a Co-Applicant?
- What You Must Know About Education Loan Co-Applicant
- Co-Signer Education Loan Documents
Why Students Prefer Education Loans
You can take pride in earning a self-made badge when you complete your education by applying for a student loan. Furthermore, you can access quality education and never have to settle for a lesser-known university or course. So, with an education loan, you can secure a seat at your dream university. Many financial institutions, including NBFCs, offer education-focused financing solutions that enable students to achieve their academic goals.
Also, there will be no need to utilise your family savings or liquidate your assets when you opt for a student loan. These savings can immensely help you during contingencies, such as health emergencies. Moreover, please remember that it is crucial to repay the student loan responsibly. This will help you build a healthy credit score, which can unlock several benefits when you opt for other financial products, such as a car loan, home loan, or credit card.
Education Loan Without Co-signer – Possibilities
New-age NBFCs, such as Avanse Financial Services, will require a co-applicant when you apply for a student loan. Please remember that student loans are typically the first type of credit that students borrow. Therefore, an education loan co-applicant will play a crucial role. Let’s understand this in detail.
Who Can Be a Co-Applicant?
A co-signer for an education loan can be a parent, legal guardian, sibling or other blood relative. Furthermore, your co-applicant should have a bank account in India that allows them to sign cheques. Your co-borrower will be your primary debtor.
What You Must Know About Education Loan Co-Applicant
When you apply for a student loan, your student profile is thoroughly checked to determine your employability score. Hence, parameters such as entrance exam scores, academic scores, the pedigree of your university, and continuity in your education, to name a few, will be examined. Additionally, the co-applicant’s financial background will also be examined. Therefore, applying for an education loan without co-signer is not recommended.
In the event of default, it will also be the parent’s responsibility to repay the student loan. Students are often first-time borrowers and do not have a credit history. Therefore, NBFCs analyse their employability scores and their co-applicant’s financial background. By doing so, the risk associated with offering education loans to students with no credit history is mitigated. At Avanse, we prioritise the student’s profile over the co-signer’s financial history.
Also Read: How to Choose the Best Student Loans for College Based on Your Needs
Co-Signer Education Loan Documents
Please note that your co-applicant will also need to share the documents. Your chosen lender will need to thoroughly check all the documents as part of the evaluation process. Here are some of the essential documents you need to be ready with:
For co-applicant:
- 2 colour passport-sized photos
- Photo ID
- Residence proof
- Date of birth proof
- Signature verification
- Income proof
- Collateral documents (only for a secured student loan)
- 8-month bank statement
- Relationship proof
For students:
- 2 colour passport-sized photos
- Photo ID
- Residence proof
- Date of birth proof
- Signature verification
- Academic documents
- Proof of admission
- Fee structure
At Avanse Financial Services, we offer an education loan for studying abroad and in India. We offer student loans that cover the holistic cost of education, including tuition fees, travelling expenses, accommodation costs, living expenses, the cost of learning devices, and other education-related expenses. You can also benefit from 100% finance, quick sanctions and flexible repayment options. You can use our education loan EMI calculator to estimate your EMIs. If you have any queries, please don’t hesitate to share them with us. We will be glad to partner with you on your academic journey.
