Obtaining an education loan of Rs 20 lakh typically necessitates the provision of collateral. Therefore, it is essential for students to consider education loans that do not require collateral.
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Many Indian students now find the aspiration of studying abroad more achievable than ever, as they can secure education loans of up to Rs 20 lakh to pursue their higher studies without the necessity of collateral. Statistics indicate that over 1.2 million students have traveled abroad for their education. However, numerous students often hesitate due to the significant costs involved. Additionally, obtaining an education loan of Rs 20 lakh typically necessitates the provision of collateral, presenting another obstacle. Therefore, it is essential for students to consider education loans that do not require collateral.
An education or study loan for studying abroad is a financial solution that helps the students in completing their higher education abroad without the need of down payment. By removing the requirement of collateral, this loan aims to make education reachable to a broad scale of aspiring learners. Unlike some other loans that need collateral like property or jewellery, education loans depend on the borrower’s loyalty and income to regulate eligibility. However, some of the benefits of applying for a student loan without collateral are listed below.
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* Eliminates the need to guarantee assets or security.
* Provides funds for education without any financial burdens.
* Offers high interest rates compared to the other loan types.
* Provides expanded repayment periods, automatically reducing monthly financial burden.
* Includes a straightforward and easy online application process.
* Has a faster approval process than the other loans.
* Offers a grace period before starting the process of repayment.
* Allows a co-borrower to enhance eligibility and loan approval.
Obtaining an education loan presents numerous advantages beyond those previously mentioned; however, many students opt for self-funding their higher education. The decision between these two alternatives largely depends on the individual circumstances and preferences of the student. Managing one’s finances independently can be a viable choice if sufficient resources are available to meet educational expenses. Conversely, education loans come with the obligation of higher interest rates and repayment terms. Nevertheless, they provide significant returns in terms of career opportunities, cultural experiences, and personal development—benefits that self-funding may not offer. Furthermore, securing an education loan necessitates proper legal documentation, which is essential for ensuring a smooth study abroad experience.
Students are generally aware of the benefits associated with obtaining an education loan; however, a prevalent inquiry among them is whether it is feasible to secure a Rs 20-lakh education loan without collateral for studying abroad. While there is a specific limit set for study loans aimed at facilitating higher education overseas, those encountering challenges with non-collateral education loans and seeking tailored financial support are encouraged to reach out to the organisations like us.
