Get an Education Loan Without Co-signer

International student loans 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 fund up to INR 75 Lakhs to students without collateral and co applicant for education loan.

Education loan without co applicant and collateral depends majorly on the target college, country, and student’s past academic records. In this blog, we will traverse through the features and options of no cosigner student loans.

No Collateral No Cosigner Education Loan Providers

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 of education loan without collateral and co applicant.

Education Loan Without Co Applicant 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 without collateral and co applicant, 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:

Education Loan Without Co Applicant by MPOWER Financing:

MPOWER Financing has been a public benefit corporation in the marketplace since 2014 providing education loans to international students. MPOWER Financing offers education loan without collateral and co applicant for two-year 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:

Education Loan Without Co Applicant by Quorum Federal Credit Union:

Quorum Federal Credit Union offers non cosigner student loans to international students. They provide loan amounts of up to USD 75,000 with a repayment tenure of 20 years. The repayment term is 20 years if the principal balance at repayment is USD 40,000 or less, and 25 years if the principal balance at repayment is more than USD 40,000. Quorum Federal Credit Union provides competitive fixed and variable interest rates with no prepayment penalties. 

Eligibility Criteria for Non-Cosigner Loans

Students have to fulfill specific eligibility criteria when they consider applying for non cosigner student loans and collateral free education loans since lenders also look for the repayment ability of the borrower to mitigate the risk of default. Below are some of the factors that lenders take into account while advancing non cosigner student loans.

Minimum Academic Qualifications:

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  Students must have a strong academic background.
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  Students must be enrolled in a recognized university or institution.
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  International lenders also prefer students pursuing STEM and management courses.

Specific Countries and Courses Covered:

Loans are generally available for studying in popular destinations such as:

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  USA
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  Canada
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  UK
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  Australia
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  Germany

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  Lenders prefer students who are enrolled in masters programs, MBA, and professional certifications as it allows them to reduce the risk of default. 

Required Documentation:

Students must submit the following documents:

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  Proof of admission (offer letter from the university).
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  Academic transcripts and test scores (e.g., GRE, GMAT, TOEFL, IELTS).
• 
  Valid passport and visa.
• 
  Statement of purpose (SOP).

Thinking about studying abroad but worried about collateral for an education loan? Watch our video to discover how you can secure funding without collateral or a co-applicant!

Steps to Apply for a Non-Cosigner Loan

Students often look for “How to get a loan without a co signer” if they are willing to pursue their higher education. This section will provide you with a step-by-step guide to help you with the process.

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  Start the process by first assessing your eligibility. Visit GyanDhan and check your loan eligibility.
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  An Education Loan Counselor (ELC) from GyanDhan will connect with you and guide you through the loan process. Based on your profile, they will provide you with a customized checklist of documents. 

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  Collect all the required documents mentioned in the checklist and ensure that all the documents are accurate and up to date as per the requested checklist.
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  Once the verification of your loan application has been completed, you will receive a loan approval notification with the amount approved.
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  After approval of your loan application, the loan amount will be disbursed directly to the institution or as per the agreed terms of the loan.

Common Pitfalls to Avoid

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  You must ensure that you have filled out the application accurately. Always double-check for any missing information or documents.
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  Always submit the application well before the deadlines so that there is enough time for processing. Late submissions can affect your admission and visa timelines.
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  Ensure that you have carefully gone through the terms and conditions of the loan, including interest rate, repayment terms, and any other costs that can impact your finances. 

Documents Required for Education Loans Without a Cosigner

Generally, your education loan application is backed up by documents on your and the cosigner’s identity and the collateral validity. Since international lenders 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:

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

Documents required for MPOWER Financing student loans:

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

Pros and Cons of Non-Cosigner Loans

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. 

Pros of Traditional Loans:

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 have to be a close relative. There are no such hurdles for student loans without a cosigner, plus there are some added advantages:

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

Potential Risks and Challenges:

Below are some of the challenges that you might face when you are going for non-cosigner student loans.

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  Student loans without cosigners come with comparatively higher interest rates since the risk is higher for the lenders. This gap in interest rates can lead to a big difference in the overall repayment amount.
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  Due to the unavailability of collateral and co-signer, not all students qualify for this type of loan as lenders look for the future earning potential, student’s academic record, university, and course of enrollment. 
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  Lenders who provide education loan without co applicant may limit the maximum loan amounts, which can fall short of covering the total cost of education, leading students to seek other sources of funding.
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  Some lenders may impose strict repayment schedules or higher penalties for missed payments. 
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  Lenders who provide education loan without co applicant are limited, leaving fewer options for students to choose from.

Since their establishment, international student loans have helped many students without collateral or cosigners 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. With GyanDhan you can easily apply for no collateral no cosigner education loan in the comfort of your home. GyanDhan evaluates your profile and offers you a broad range of no collateral no cosigner education loan options. Once you do, here is an easy way for a seamless loan application - check your education loan eligibility now.

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