Education Loan Without Cosigner for Abroad Studies

    Updated on: 11 Sep 2023

    How can you get education loan without cosigner

    International student loanWhat is the loan approval process when you don’t have a cosigner?  s without cosigners break the conventional norms of education loan lending. While banks and Non-Banking Financial Companies (NBFCs) in India mandate collateral or cosigner even for a loan amount of INR 50,000, international lenders funds up to INR 75 Lakhs to students without these two.

    Education loans without collateral or co-applicant depend majorly on the target college, country, and student’s past academic records. In this blog, we will traverse through the features and options of study loans without a cosigner.

    What are the available choices for students not having a coapplicant/cosigner?

    There are international financial institutions like MPOWER Financing and Prodigy Finance that will provide you with education loans without collateral or cosigner. The norms for international lenders are different when compared with public sector banks or private sector banks. 

    The rate of interest is usually high as it is calculated in USD and gets converted to INR. Even a slight change in interest rate can make a big difference in interest amount, and it can make a significant impact on the financial condition of the students. You can use the EMI calculator to see the monthly repayment for the loan amount you need and see whether it is affordable or not. 

    Here are the comparative charts for a holistic analysis of the lending process, prevailing rates, and other aspects.

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    Student loans by Prodigy Finance

    Prodigy Finance is an international fin-tech platform based in the UK lending education loans for graduate courses at select universities or colleges. To apply for an education loan, a student must secure admission to any of the colleges listed by Prodigy Finance. See the List of colleges supported by Prodigy Finance.

    The following table presents the features of Prodigy Finance education loans:

    Maximum loan amount

    Up to 1 Lakh USD

    Interest rate (APR)

    11.5 - 14 % USD

    Admin fee

    5% of the loan amount

    Processing time

    7 - 10 working days

    Moratorium period

    Course years + 6 months

    Margin money

    15 - 30 % of overall expenses

    Repayment tenure

    7 - 20 years

    Student loans by MPOWER Financing

    MPOWER Financing is a public-benefit corporation in the marketplace since 2014 providing education loans to international students. MPOWER Financing offers education loans for two years undergraduate and graduate courses at the colleges they have listed. See the list of Colleges supported by MPOWER Financing.

    The table below shows MPOWER Financing education loan details:

    Maximum loan amount

    Up to 1 Lakh USD

    Interest rate

    12 - 14 % USD

    Processing fee

    5% of the loan amount

    Processing time

    7 - 10 working days

    Moratorium period

    Course years + 6 months

    Margin money


    Repayment tenure

    10 years

    What is the loan approval process when you don’t have a cosigner? 

    The process of loan approval with major public sector and private sector banks can be a bit taxing for commoners if they don’t have a cosigner. Worry not, there are international lenders who ensure a student gets the loan without much trouble. 

    • You can check your education loan eligibility and clear the air about the possibility of getting a loan.
    • If you are eligible for the loan, you have to fill out a form giving the details regarding the institution, credit history, etc.
    • If eligible, a conditional loan offer is provided immediately that helps you in getting an assurance of the loan. 
    • Then you must upload all the authentic documents on the website facilitating the loan. 
    • The verification process is finished in the shortest possible period, and you are informed about completing the verification process. 
    • After the verification is completed, the financial institution will sanction the loan. 
    • Once you get the admission letter from the university, the financial institution providing the loan will directly transfer the amount to the college.


    Calculate your Education Loan EMI Click Here

    What are the documents required for education loans without a cosigner?

    Typically, your education loan application is backed up by documents on yours and cosigners identity and the collateral validity. Since international lendeders do not require the cosigner’s details, the documents you need to submit include your eligibility. 

    The documents for international student loans for which no co-applicant is needed are listed below:

    Documents required for Prodigy Finance student loans:

    • Student’s identity and address proof
    • School admission proof
    • Credit report
    • Job offer (if employed)
    • Savings or family contribution proof to fund studies (if any)
    • Other sponsorship/ scholarship confirmation document

    Documents required for MPOWER Financing student loans:

    • Resume or CV
    • Home address proof
    • Entrance test scores (GRE, GMAT, IELTS, TOEFL, etc.)
    • Admission letter
    • Previous academic records
    • Estimated cost of attendance
    • Passport
    • Secondary photo ID from home country
    • Supporting documents of external funding
    • Visa documents


    What are the benefits of an education loan without a cosigner? 

    Several students are meritorious but don’t have the financial capability to go to an abroad university. Education loans have limited reach, and the need for collateral also inhibits students from realizing their potential and going for education abroad. 

    The loan processing is usually easy if you have collateral, but it becomes cumbersome when it comes to getting a loan without having a cosigner or an asset to back your loan. Even for a cosigner, the criteria are very stringent, and has to be a close relative. There are no such hurdles for student loans without a cosigner, plus there are some added advantages: 

    • Loans are sanctioned within a week. 
    • There is no need for a cosigner or collateral.
    • There is minimal paperwork, and the documentation has to be uploaded online for the verification process. 
    • There is no need to visit the branches that help a lot of time and energy. 
    • The documents to be submitted are way less when compared to directly approaching the lenders for a loan. 
    • The loan amount is credited to the college, and this doesn’t put a burden on the students of managing huge sums of money in their bank accounts.
    • The university profile plays a crucial role in deciding the interest rate and the loan amount for meritorious students. 
    • The loans are authorized through fully established legal channels that completely rule out the possibility of getting duped. 
    • You can also request a visa support document to obtain an I-20 from the university if needed.


    Since their establishment, international student loans have helped many students without collateral or cosigner who couldn’t apply for education loans. You can also be one among them if you get admission to a listed institution and course of study. 

    However, be mindful that the interest rate is higher for international student loans since it is calculated in USD. You must plan your education loan repayment well in advance to avoid future troubles regarding the repayment within the available loan tenure. 

    Make sure you understand the process and the terms and conditions of the loan. Once you do, here is an easy way for a seamless loan application - check your education loan eligibility now.

    Read also:

    Frequently asked questions

    Is it a good option to take an international student loan without a cosigner? 

    International student loans being good or bad depends on your situations and perceptions. They are best options when the applicant has high academic merit but no collateral or cosigner. One major issue with student loans from international lenders is their high interest rates compared to the loan options in India. 

    Can I get international student loans to study anywhere abroad?

    Education loans by international lenders are provided for selected courses and universities. If your university or course is ineligible it will be difficult to get an education loan from them. However, Prodigy Finance gives the option of a request to add your college to their list, but still suggesting other lender options in such cases as adding a new college is not a guarantee for loans and is a time-taking process. 

    What if I couldn’t repay the international student loan? 

    Failure in repaying the international education loan should be avoided as it may lead to serious legal consequences. But it is an extreme case and normally the lenders are open to negotiations and talks when you face difficulties in loan repayment. In fact, the lenders keep a list of eligible colleges because they consider the student has better job prospects once they are graduated from any of those institutes. 

    Which bank gives education loan without co applicant?

    In India, public and private sector banks mandate that students must have a co-applicant when they apply for an education loan.

    Is a co-applicant mandatory for an education loan? 

    Typically, an education loan is granted only when a co-applicant is also there to guarantee the loan.

    First published date: 09 Aug 2021

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About author

Aman Jain
Aman Jain graduated from IIT Kanpur, and currently functions as the VP of Marketing & Operations. He is deeply passionate about creating equality in higher education and has directly interacted with 2000+ students in his year-long journey.

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