Most people are forced to pull down the shutter on their abroad education dreams due to the costs involved. The good news is that your bank balance does not have to dictate what you can achieve today. You can easily opt for a collateral-free education loan and fulfill your goals. If you’re wondering how to get an education loan, this guide is for you!
Collateral loans v/s Collateral-free loans
Education loans for abroad studies come in two types: collateral (secured) personal loans and collateral-free (unsecured) personal loans. With a collateral loan, you must pledge valuable assets such as your property, fixed deposits, or government bonds as security to the lender. If you fail to pay the loan on time, the lender has the right to seize your assets. A collateral-free loan eliminates the pledging of assets, offering you complete peace of mind.
Benefits of collateral-free personal loan for education
In addition to saving you from the stress of collateral loss, getting an education loan can benefit you in the following ways:
- No age barrier: Whether you are a young graduate wanting to continue higher studies or a working professional looking for a career change, a personal education loan supports everyone’s (18-60 years) dream of studying further.
- Usage flexibility: You can use the education loan for an MBA, after 12th grade, after graduation, short-term courses, skill development training, and a variety of other programs. You can even pay for other costs involved, such as study materials, course-related equipment, and application fees.
- Quick approval and processing: Collateral-free loans are usually approved and disturbed quickly, especially when there are no discrepancies in the online application process and documents required for an education loan from your end.
- Competitive interest rates: Lenders customise the education loan interest rates based on individual profiles. By adopting strategies to become a low-risk borrower, you can secure the loan at more favourable interest rates.
How to get an education loan for abroad studies?
While banks offer education loans, most have stringent eligibility criteria, demand extensive documentation, require collateral, take longer to process, and make it available for limited programs. If you desire quick, easy, and flexible loans, you can easily approach non-banking financial companies (NBFCs), such as Manba Finance. They offer unsecured personal loans for everyone who dreams of studying more.
How can I apply for an education loan?
You can follow the step-by-step process of securing a personal loan as illustrated below:
- Research your options
You can begin by researching lenders online and comparing their education loan offers. Check factors such as eligibility criteria, interest rates, processing fees, additional charges, loan amount, and loan tenure. Reading verified reviews and case studies will provide helpful insights about the lender. Additionally, scan for financial institutions that are offering special offers to students.
- Understand your education loan eligibility
Before you apply, it is crucial to check if you are eligible. Manba Finance has easy eligibility criteria, ensuring that everyone has an equal opportunity to study abroad. To apply, you must be an Indian resident between 18 and 60 years of age and have an operative bank account.
- Check the education loan interest rates
Every financial institution sets its interest rates depending on the type of loan, market conditions, and, most importantly, the borrower’s creditworthiness. You can secure a low-interest-rate personal loan for education with a credit score of 750 or above.
- Use the education loan EMI calculator
An EMI calculator is a smart way to determine how much you can pay each month. Consider your income and monthly expenses to determine an amount that fits your budget.
- Gather the documents required for an education loan
You must gather the required documents and scan them for uploading. Manba Finance has made the process easier by providing a simple checklist requiring just one proof of identity, residence, and income.
- Fill out the online application form
Finally, you can apply for the education loan for abroad studies by carefully filling out the online form. Initially, you will need to provide basic details such as your name, contact information, type of loan, and CIBIL score. After submitting your application, you must submit KYC documents, complete the E-Sign agreement, and conclude with E-Mandate formalities.
- Prepare for loan approval and disbursal
As long as your application and documents are error-free, you can expect to get the education loan for abroad studies within 48 hours of the verification process.
How much education loan can I get?
The loan amount highly varies based on your education loan eligibility, income, and creditworthiness. To increase your chances of securing the desired loan amount, maintain steady employment, a high income, and a strong credit score.
Apply for an education loan and make your career aspirations come true!
Now that you know how to get an education loan, it is time to apply for it. Whether you need an education loan for MBA after 12th, after graduation, or any other program, Manba Finance can provide financial support for your education goals. Contact us today for further information on personal loans for education!
