Many young Indians hope to complete their higher education at foreign universities. They wish to widen their horizons and boost their job offers with an international degree. One common hurdle they face while attempting to achieve this dream is a lack of finances. Apart from paying for their tuition, students must also have enough money for other expenses such as accommodation, living expenses, study materials, and other educational costs. An education loan for abroad studies can help in these situations. Students may apply for a loan to help pay for college and living costs. Let’s look at how education loans can help students achieve their academic goals.

The Two Types of Education Loans

  • Secured Loan: Education Loan With Collateral
    For this loan, you can provide the lender with an asset, perhaps property, as security against the loan amount. Depending on the collateral, you may be eligible for a few benefits. Your education loan journey will be easier if you offer security against your education loan.
  • Unsecured loan: Education Loan Without Collateral
    You can opt for an unsecured loan if you don’t want to offer any collateral. Before applying, check whether your preferred lender offers unsecured student loans. In such situations, good academic and entrance exam scores, secure financial backing from your family, and the reputed university and recognised course of your choice will work in your favour.

What Conditions Should I Fulfil for an Education Loan for Abroad Studies Without Collateral?
Most lenders will decide whether to provide an unsecured education loan based on the following criteria:

Applicant’s Academic Profile
Students who have consistently performed well over the years are far more likely to get approved for unsecured loans. The academic profile helps lenders assess whether a student can find employment in the future and repay the loan as per the agreed terms.

Co-Applicant’s Credit Score
When applying for an education loan, you must provide the details of a co-applicant. The individual should be a parent, relative or guardian with a healthy financial background. The lender will check their credit score before approving your application. If your co-applicant has a good credit rating, you will likely get your education loan.

As a student-centric organisation, Avanse Financial Services takes a different approach to educational lending. We prioritise your employability potential over the co-applicant’s financial background. We’ll look at your academic and entrance exam scores and the pedigree of the educational institution you hope to join to determine your employability potential.

The Degree
Lenders view some degrees as more reliable than others. You will likely get your education loan approved if the lender approves of the degree. Pursuing courses that align with your existing skills will work in your favour.

The Country
When it comes to education, the world is your oyster. You can choose to study in an Ivy League college in America, an Oxbridge college in the United Kingdom, or a business school in the Philippines. However, your chosen destination will have some bearing on whether you will get an education loan for abroad studies without collateral or not. Many lenders will likely approve applications from students heading to well-known learning centres in popular study abroad destinations such as America, England, Australia or Ireland.

The University
Most lenders have partnerships with various colleges and universities across the globe, so it is easier to provide education loans for these educational institutions. Therefore, it’s always a good idea to check if any lender has an existing relationship with your preferred university. It could fast-track your education loan without collateral application.

Is an Education Loan for Abroad Studies Right for Me?
Finances should never stop you from achieving your goals. An unsecured education loan allows you to maintain financial independence while helping you gain a foreign education. Before applying, you should check the eligibility criteria and ensure you meet them to avoid unnecessary delays. If you’d like to apply for an education loan or learn more, visit the Avanse Financial Services website.

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