Get Education Loan Without Co-applicant in India (2024)

Education Loan Without Co-Applicant in India

Pursuing higher education often requires financial support, that is provided by education loans.  Yet many aspiring students face hurdles due to the requirement of a co-applicant for these loans. 

Thus, there is a growing demand for education loans without the necessity of a co-applicant, offering greater accessibility and independence to students. 

Let's dive into the landscape of education loans without co- applicant, exploring the availability, eligibility criteria, and benefits of such loans. 

We, at Propelld, offer education loans without collateral and co-applicants, allowing you to apply for loans with more convenience. However, the same depends on eligibility. Let's understand how you can get education loans without a co-applicant.

‍

Invest in Your Future Without the Need for a Co-Applicant! Explore our Education Loans Now

‍

What is a Co-applicant?

A co-applicant in a loan is an individual who applies for the loan alongside the primary borrower, sharing responsibility for repayment. 

A co-applicant is also known as a cosigner or co-borrower. They typically provide additional guarantees in the form of financials or assets to strengthen the loan application.

Types of Co-Applicants

There are 2 types of co-applicants:

1. Primary Co-Applicant

The primary co-applicant is a vital individual in your education loan process whose participation is mandatory when you take the loan. The primary applicants are your parents or siblings. They may be working or retired. It's not necessary for them to have a stable financial status. 

2. Financial Co- Applicant

The financial co-applicants are the additional co-applicants with strong financial profiles to strengthen the guarantee of loan repayment. 

Financial co applicants must be in blood relation: first cousins, maternal, paternal uncles, aunts, etc. They are required only if the primary co-applicants are not sufficient for the financial guarantee, usually in cases where the primary applicants don't have a stable income. 

‍

‍

Eligibility Criteria for Education Loan without Co Applicant

The eligibility criteria are different for different profiles of candidates seeking education loans are as follows: 

Profile 1: Student with Work Experience Looking for Further Education

1. A minimum work experience of 3 years.
2. Verified documents of your last drawn salary.
3. Salary must be at least ₹35k per month.
4. Your university should be there in the list of highest-ranking among 300 universities worldwide. Also, the name of the university must be present with the lenders.
5. The course should be a master’s degree, like an MSc or MBA.
6. The CIBIL score of the co-applicant must be more than the score of 685.
   

If all the above parameters are fulfilled, you can be eligible to get a loan up to ₹40 lakhs without collateral and co-applicant. The rate of interest is usually 8% to 11%.

Here, you will still need a primary co-applicant, just for KYC purpose and not for financials. However, you don't require a financial co applicant. 

While fintechs like Propelld provide education loans up to 50 Lakhs without collateral that requires no eligibility criteria if you have an earning co-applicant.

‍

Let your Academic Performance be your Support Education Loan Based on Your Marks Sheet. Easy Digital Process

‍

Profile 2: Students Lending from International Banks

Students can take education loans from foreign lenders as well. There are international financial institutions that provide educational loans to international students. The foreign lender and funds are extended in USD, unlike Indian lenders. USD lenders don't ask for co-applicants during the education loan process.

If you opt for a master's in an international university, you will be eligible to get an education loan without collateral and co-applicant from these foreign lenders. 

However, these loans from foreign lenders can get expensive as compared to Indian lenders. Hence, a loan from foreign lenders should be the last resort for you. 

You can also check your eligibility with RBI registered NBFCs like Propelld that provide hassle free education loans with a much higher approval probability and faster processing. 

So, if your profile fits one of the above profiles, you are eligible for an overseas education loan without a financial co-applicant and collateral.

‍

Don’t have a Financially Strong Co Applicant? Don't Worry! Check Your Eligibility for Loan Without Co Applicant Today 

‍

Benefits of Getting an Education Loan without Co Applicant

Some of the most important benefits of getting an education loan without co applicant are: 

Financial Independence

Obtain funding for education without relying on a co-applicant's financial resources, thus empowering students to pursue their academic aspirations autonomously.

You can get more than 40 lakhs of education loans. That, too, without putting up any collateral. 

Simplified Application Process

Reduced complexities of finding a suitable co-applicant, facilitating streamlined process, quicker loan approvals and disbursements.

Increased Opportunity

Expands access to education financing for individuals who may not have a suitable co-applicant, increasing opportunities for higher education among diverse demographics.

To compare, check out Lowest Interest Rate on Education Loan.

More Privacy and Control

Protect personal financial information and have control over the loan repayment process, minimizing any conflicts or dependencies with co-applicants.

You avail the entire loan amount before admission and thus, have a better control on your finances. 

Flexible Repayment Options

Enjoy greater flexibility in managing loan repayments, tailoring schedules and terms to individual financial circumstances without the involvement of a co-applicant.

There is no penalty for prepayment. Also, you are not required to pay installments or EMIs in the moratorium period.

Encourages Self-Reliance

Promotes a sense of responsibility and self-reliance among students, fostering independence and financial accountability in their educational pursuits. If required, you can also apply for and receive top-up loans. Thus, being completely responsible for your education. 

‍

‍

Documents Needed for an Education Loan without Collateral and Co-Applicant

Here is the outline of documents needed to secure an education loan without collateral and financial co-applicant:

1. The official letter from the university that mentions the tuition fees
2. Academic documents
3. Employment documents
4. Visa documents
5. Your KYC documents and co-applicants KYC (PAN Card, Adhaar Card, passport)
6. Secondary photo ID from home country.
7. Your savings account details
8. Your address proof, along with the electric bill
9. If your co-applicant is a salaried class individual, income proof is essential. Proof such as ITR, Salary slip, and Salary account detail works. 
10. If your co-applicant is a business owner, income proof is necessary. Documents such as ITR, Profit & loss account, current account, Balance sheet, and Business registration certificate can be used as proof. 

Too much documentation that is? 

No worries! Enjoy hassle free and simplified loan processing with Propelld Education Loan . 

‍

Hassle Free Loans. Lesser Documentation. Faster Processing. Check Your Eligibility Now!

‍

Unsecured Education Loan without Co Applicant

The loan approval process seems easy and, at times, can prove to be overwhelming. It can surely be a bit taxing for you if you don’t have a cosigner. There are certain steps that you must follow to ensure that you get the loan without much trouble.

1. Check your education loan eligibility first. 
2. If you clear all the parameters for the education loan without a cosigner and collateral, you are required to fill out a form with all the necessary details. 
3. Post this, a conditional loan offer is given to you immediately. This offer is helpful for you in getting an assurance of the loan.
4. Next, you are required to upload all the important documents asked during the loan process. The documents should be uploaded on the website that will facilitate your loan process.
5. Once the document verification process is finished by the authorities, you are informed about completing the further verification process as soon as possible. This step is crucial for your decision because it requires the final verdict of your educational dreams.
6. The verification is completed, and the financial institution goes ahead to sanction the loan.
7. Finally, as you obtain the admission letter from your university, the institution that is providing the education loan will directly transfer the amount to the college.

Find out if you qualify for an unsecured education loan without a co-applicant easily here.

Obtaining a student education loan without a co-applicant is achievable if you have correct knowledge about its eligibility and approval process. Every student has a unique set of challenges, and lenders often reject loan applications without collateral and co-applicants. 

If you are sailing the same boat, start your education loan process with us today. 

At Propelld, we offer a super easy loan through a private and student-friendly loan process that can focus on your education loan without worrying about the loan hassles.

‍

Completely Digital Process. RBI Registered. Competitive Interest Rates. Apply Now!

‍

In a Nutshell

1. There's a rising need for education loans without co-applicants, providing greater accessibility and independence for students.
2. A co-applicant shares responsibility for loan repayment and provides additional guarantees.
3. Primary co-applicants are mandatory, while financial co-applicants strengthen loan applications.
4. Many private banks and NBFCs like Propelld offer unsecured education loans without collateral or co-applicants, based on eligibility. 
5. These loans offer financial independence, simplified application processes, increased opportunity, privacy, control, and flexible repayment options.
6. However, the loan eligibility for these is based on profiles, such as students with work experience or those borrowing from international banks.
7. After meeting eligibility criteria and submitting documents, a conditional loan offer is given, followed by verification and sanctioning processes, ending with direct disbursement to the university.

FAQs About Education Loan without Co Applicant

Is it possible to avail of an education loan without a co-applicant?

Yes, you can avail the education loan without a co-applicant and collateral. These unsecured loans are a type of loan where you will not be mandated to pledge any collateral security in the form of property or co-applicant/guarantor against the loan amount given by the bank.

Who can avail of an education loan for higher studies?

There is an eligibility criteria to apply for an education loan for higher studies. If you are planning to take an education loan, you must not be less than the age of 18 years and more than the age of 35 years. Moreover, you should have secured admission in the recognized institutions, irrespective of Indian or foreign institutes.

Can I get an education or a student loan without the participation of my parents in India?

You must consider that you belong to India and have been a permanent resident in this country. If you are not more than the age of 18, then your parents are mandated to apply for the education loan on your behalf.

Is having a co-applicant compulsory for education loans?

Yes, it is a mandatory practice to have a co-applicant in your education loan. However, you must consider that the primary co-applicant is necessary as banks require someone who shares equal responsibility for loan repayment. It is inevitable to have a primary co-applicant, but financial co-applicants might be dropped from the loan procedure.

Can I get education loan if my father is not working? 

Yes. You can get an education loan even if your father is not working or retired. Most lenders take into account alternate sources of income or credit history and assets as a guarantee. 

Is a joint account necessary for an education loan?

A joint account may not be necessary for an education loan, but having one can simplify loan disbursal and repayment processes.

Is parents’ income required for an education loan?

While parents' income is often considered for an education loan, it's not always mandatory. 

How much education loan can I get without a co applicant?

The amount of education loan you can get without a co-applicant depends on various factors such as the course, institution, and your repayment capacity. However, most lenders and NBFCs like Propelld provide an education loan upto 50 lacs without collateral or co applicant, depending on your eligibility. 

Can I get a 70 lacs education loan without collateral?

Generally, securing a 70 lakhs education loan without collateral might be challenging. Lenders may require collateral or a co-applicant for such a significant amount. However you can check your eligibility for the same with Propelld. 

Can I get an education loan if my parents CIBIL is low?

A low CIBIL score of parents could affect the approval process, but it's not always a deciding factor. Alternative arrangements like a co-applicant or collateral might help secure the loan.

Can I get an education loan if my father has an ongoing home loan?

Having an ongoing home loan might affect the debt-to-income ratio, but it doesn't necessarily disqualify you from getting an education loan. Other factors will also be considered in the assessment.