How a Co-Signer Increases Your Study Abroad Loan?

Higher education in a different country demands lots of paperwork and resources. This ensures that you have plenty of funds to support your education. But the currency rates and lifestyle changes can impact your budget. In this circumstance, an education loan acts as financial aid, which helps you fund your higher education in your dream country. Yet, many students are unaware of the benefits that can be avail by adding a co-applicant in the loan application.

Well, after reading this blog, it won’t be a mystery because we are going to cover everything that a student should know. 

What is the Co-applicant?

A co-applicant is an individual who takes responsibility for the education loan with you. Their credit score and income play a significant role in the loan application. For instance, if you are unable to repay the education loan, then they are obligated to repay the education loan. 

These repayment terms make the co-applicant a dicey choice. Still, including a co-applicant in your education loan can turn the tables in your favor. You might get a great deal and save lakhs on the education loan.

Read More:

• 
  Get an Education Loan With a Low CIBIL Score
• 
  How Student Loans Work?

How Does a Co-applicant Help During an Education Loan?

When you are adding a co-applicant to an education loan, you are adding a security to your loan application. Here are some benefits that you can take advantage of:

Security:

When you are applying for an education loan, you don’t have an income. This equation is risky as your future is uncertain and future is unpredictable. Therefore, the co-applicant adds security, making you a more reliable borrower in the eyes of the lender.

Loan Amount:

Banks, NBFCs, and international lenders increase the loan amount when a financially stable co-signer is involved. This is crucial when applying to countries with higher living and tuition costs, such as the US, UK, or Australia.

Interest Rates:

The presence of a co-signer lowers the lender’s risk, which often results in more favorable interest rates, longer repayment periods, and flexible repayment options.

Visa Application:

In many countries, having proof of a sanctioned education loan covering tuition and living expenses enhances your visa approval prospects. A co-signer loan with a higher approved limit ticks this box perfectly.

These are general terms that are affected when you add a co-applicant to the loan application. However, Prodigy Finance is known for offering no-collateral, no co-signer loans to international students. They have now launched an innovative co-applicant loan option. Let’s discuss Prodigy Finance Co-signer Education Loan features before giving a verdict.

Introducing Prodigy Finance's Co-Signer Loan

Prodigy Finance is known for its no-collateral and no co-signer education loan, but not anymore. You can take advantage of the co-signer education loan, knowing about it in detail will help you better:

Higher Loan Amounts:

With a co-signer, their credit score helps you get a higher loan amount, helps you cover 100% of the tuition fees, but also living expenses, travel, and other related costs. 

Better Approval:

Prodigy Finance provides the loan based on future potential. Yet, an education loan in this circumstance is a risky proposition. Thus, a co-applicant strengthens the loan application and makes the approval process faster.

Flexible Repayment Options:

Prodigy Finance has an obligation of USD 100 every month during the moratorium period. Many students consider it a bother; however, adding a co-signer education loan and paying this amount can help you maintain the principal amount. Thus, it decreases the overall repayment burden after completing the studies.

Global Credibility:

Studying abroad comes with a vision of settling there; however, Prodigy Finance, being an international lender, can help students build a credit score, aiding in future financial help. 

Who Can Be a Co-Signer? 

Prodigy Finance also has some conditions related to the co-signer. A co-signer should be:

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  an Indian citizen or a permanent resident of India. 

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  financially stable with a good credit profile.
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  and willing to support your dream.

Most commonly, students choose parents, siblings, or close relatives.

How a Co-Signer Impacts Loan Terms?

When you are adding security to the education loan, the interest rate decreases. This often translates into a reduced interest rate.

You can save 1% yearly on the education loan, which could help you save lakhs during the repayment. To know the exact difference between the two. Use the EMI Calculator and know the real maths behind your interest rate. 

Conclusion

If you are planning to study abroad and looking for extra funding, then Prodigy Finance can be a great option. And if you are still unsure, then don’t look anywhere and take help from GyanDhan experts by using the Loan Eligibility Tool. We will help you evaluate the profile, know the lenders, and even negotiate the interest rate.

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