If you are planning to opt for an education loan to achieve your study abroad dream, you must understand various aspects before applying for one. You must select from two types of student loans, secured (with collateral) and unsecured (without collateral). Let’s understand the meaning of these terms and the procedure of non-collateral student loans better. So, let’s dive in.
Types of student loans
So, let’s understand the process for non-collateral education loans
Thorough research before opting for an education loan for study abroad
You must carry out thorough research to find various aspects of study loans. Although interest rates are important, you must not forget other factors. In an attempt to search for an education loan with a low-interest rate, you may end up with the wrong loan provider or a fraud app. Therefore, consider the following aspects when opting for a student loan.
Eligibility criteria for unsecured study abroad loan
Checking the eligibility criteria of your loan provider will be part of the research. Please check the lender-specific eligibility criteria. Here are the basic eligibility criteria that you meet to apply for a student loan.
Documents required for non-collateral education loan
Ensure all your documents are in place to eliminate any chances of delay or rejection of a student loan.
Here is the list of important documents that you will need
Once you have finalised your education loan provider, you can initiate the application process. Financial institutions have revolutionised the education loan application process in this tech-centric world. Therefore, student-centric lenders such as Avanse Financial Services have moved the process completely online.
So, follow these easy steps to apply for an education loan
Will I have to arrange margin money for a non-collateral education loan?
Margin money is like a down payment. So, margin money is the contribution you have to arrange to fund your education. Depending on the lender, you may or may not have to organise the margin money.
For instance, at Avanse Financial Services, we provide 100% finance so that you can focus on your education better. We provide loans for students that cover the holistic cost of education, including tuition fees, accommodation costs, living expenses, travelling expenses, the cost of learning devices and other education-related expenses.
What will be the parameters based on which my application for an unsecured education loan will be evaluated?
Your lender will examine aspects such as:
So, with this information, you can start your student loan planning. If you need assistance, please remember all you have to do is connect with us. We will be glad to assist you on your academic journey. We wish you all the best!
We always aim to offer you competitive interest rates on your Avanse Education loan.
The rate of interest on your loan is calculated as: Interest Rate = Avanse Base Rate + Spread.
Our current Base Rate is 14.25% (WEF 01.05.2023).
The Spread is floating and is based on analysis of overall credit and course profiling.
This rate is subject to the terms and conditions of Avanse Financial Services Ltd.