Seeking a financial solution to study abroad is an overwhelming and complex process for many young study abroad aspirants. Studying in a new country brings along a never-ending list of expenses that often becomes a burden on the pockets of the student and their parents. Overcoming these financial challenges, especially for those with complex profiles might seem unrealistic at first but let us assure you that this isn’t an impossible task to do.
Yes, you read it right! However arduous and daunting this task might look, you can still secure an overseas education loan through specialised loan schemes. So, fret not, as there are unconventional paths to secure overseas education loans for applicants facing unique challenges in obtaining financial assistance.
So, keep reading this article and stay with us till the end to understand the solutions to your foreign education loan problems with complex profiles.
1. Unique Financial Profiles & Challenges
Students with unconventional financial backgrounds, such as lacking collateral or having parents with lower credit scores, often struggle to meet conventional loan criteria. Alternative loan schemes offer relief by focusing on future earning potential rather than solely on credit history or collateral.
2. Need for Quick Loan Approval
Conventional loan processes might involve prolonged approval periods, delaying your further educational processes like tuition fee payment and visa application. In most cases, these specialised schemes and alternative avenues have quicker processing and approval.
3. Maximizing Funding Sources & Amount
Branching out funding sources and amount is important to cover the cost of studying abroad. Explore alternative loan routes that complement scholarships, personal savings, or sponsorships, enabling students to bridge financial gaps effectively.
After knowing these top reasons, let’s go ahead to understand the nuances of these exclusive overseas education loan schemes.
1. Overseas Education Loan with GRE Scores
If you don’t have a property to pledge as collateral security or have CIBIL Score issues that will prevent you from getting a successful loan sanction, then you will have to look for exclusive options. International Lenders come to the rescue for this, let’s discuss them individually ahead.
· Prodigy Finance
A leading International Lender, Prodigy Finance provides unsecured education loans to applicants based on their GRE scores and the list of university mentioned in their ‘Prodigy School We support”. Depending on the university and project cost of the applicant, they provide a loan amount of up to 1 lakh dollars. The best part about taking a loan from Prodigy Finance is that you won't have to commence loan repayment till you get a job
· MPower Finance
Another leading International Lender, MPower Finance also provides unsecured overseas education loans to study abroad. Depending on the cost project and university, they provide a loan amount of up to 1 lakh dollars. However, you will have to pay the simple interest during the moratorium period.
2. Overseas Education Loan Based on University Rankings
There are numerous financial lenders who provide education loans based on the university rankings. They include Nationalised Banks, Private Banks and NBFCs as well. These banks have specific loan schemes and provide a substantial unsecured education loan amount based on your university rankings.
· Union Bank of India
A prominent Indian Nationalized bank, the Union Bank of India has recently launched an incredible education loan scheme for students planning to study abroad. According to this scheme, they have made a list of 160 top-ranked universities. If you have secured admission to any of these universities, then you will be eligible to get an unsecured education loan of up to 40 lakhs INR. The best part is that even if your family income is between 1.5 lakhs to 2.5 lakhs INR, you will still get a substantial amount. Additionally, you won’t have to pay simple interest during the moratorium period.
· IDFC First Bank
IDFC First Bank is a renowned Private Bank that offers education loans based on the reputation and rankings of selected universities. This lender provides substantial unsecured education loan for abroad under their specialised schemes. They have a list of universities under their Platinum and Titanium categories. As per this scheme, no ITR proof or strong financial co-applicant is required. However, you will have to show 6 months of bank statements of your co-applicant. So, based on your university ranking and GRE score of 315 and above, you can get an unsecured education loan of up to 75 lakhs INR. Furthermore, you won’t have to pay simple interest during the moratorium period.
· Avanse
Under their specialised loan schemes for foreign education, you can get unsecured overseas education loans of up to $91,000 for STEM Courses and a maximum of $121,000 for MBA Courses. All they check is the parent’s CIBIL scores and your GRE score should be 300+. No financial co-applicant is required, and you will get 100% of loan funding.
3. Overseas Education Loan with Any Guarantor
In most cases, only immediate family members are accepted as loan co-applicants or guarantors. However, there are some financial lenders who offer loans with any guarantor who has adequate collateral security to pledge.
· Punjab National Bank
A top nationalised bank, Punjab National Bank goes beyond the traditional requirement of immediate family members as guarantors. If you are facing problems with your collateral security, you can approach any of your extended family members, friends, or acquaintances can give their property as collateral security. This will serve as a guarantee to the bank, and you will get your loan sanctioned.
· Nomad Credit
Nomad Credit, a popular credit lender extends non collateral education loan for USA. All you need to have is a loan co-signer who resides in the USA and has a Permanent Residency or is a Green Card Holder. Their interest rates start at 3.5% and go up to 6.5%. Nomad Credit doesn’t require your GRE scores, but if you have a good GRE score then you might get a rate of interest discount. This flexibility widens the scope for securing financial assistance, enabling students in the USA to get adequate financial assistance.
· Saraswat Bank
If your parents have CIBIL score issues, but the property documents are fine. Then in such a case, the applicant can get their loan from this co-operative bank. So, even if a nationalised bank has rejected your loan application due to one silly document being missing, you can get your loan processed and sanctioned by Saraswat Bank.
These are the unique education loan schemes that you must know if you have a complex financial profile. Let’s discuss how can you apply in such a situation ahead.
Understanding the application process for these specialized education loans demands meticulous planning and attention to complexities. Assemble comprehensive documentation, including academic records, standardized test scores, and a clear understanding of specific loan scheme requisites. Seeking guidance from expert loan advisors like ELAN can help you streamline the application process and optimize your chances of loan approval.
Complex financial profiles need not be a barrier to fulfilling educational aspirations. At ELAN, we specialize in understanding and addressing the diverse needs of aspiring students, offering bespoke solutions to transform educational dreams into tangible realities.
By utilising these unconventional avenues and specialized loan schemes, students with complicated financial backgrounds can still bridge the gap between their educational aspirations and reality.
No matter how complex your profile is, we at ELAN provide exclusive education loan solutions for you. So, grab your documents and connect with our team at the earliest opportunity.
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