Study Abroad Loan Without Collateral in India
Study Abroad Loan Without Collateral in India
Blog Article
the lack of collateral may make obtaining a loan easier, several factors still influence eligibility for study abroad loans without collateral. One key factor is the student's academic history. A good academic record increases the chances of loan approval as it reflects the student's ability to complete the course and secure employment post-graduation. The student's chosen institution and course also play a significant role in the approval process, with reputed and accredited universities often being given priority. In addition, the student's cosigner or guarantor (usually a parent or guardian) must have a stable financial background to ensure they can repay the loan if needed.
Benefits of Collateral-Free Study Abroad Loans
The primary advantage of a collateral-free study abroad loan is that it makes higher education more accessible to students from diverse financial backgrounds. Since there is no requirement to pledge property or assets, students do not have to worry about risking their family's financial security. Furthermore, these loans allow students to maintain flexibility and focus on their studies without the pressure of managing or liquidating assets. With favorable repayment terms, including moratorium periods, students can start their professional careers and begin paying back the loan after completing their studies. Moreover, many students can benefit from tax deductions on the interest paid on the loan under Section 80E of the Income Tax Act. Report this page