Pursuing an international degree in a foreign country comes with a hefty amount. Majority of students opt for overseas education loan to fund their international degree. There are various financial institutions in India that offers education loan but often have a certain loan margin attached with it. So, it becomes difficult for a study abroad aspirant to secure 100% funding for pursuing a degree overseas. In such circumstances, out of all financial institutions, NBFCs come to the rescue.
A Non-Banking Financial Corporation (NBFC) is an institution that is authorized to conduct transactions like that of a bank. It can lend education loans to the students with and without pledging security. There are four NBFCs in India namely, Auxilo, Avanse, Incred and Credila. These NBFCs borrow money from investors and lend it to aspiring students as a loan amount.
Although the rate of interest of NBFCs is higher as compared to that of banks, students who lack overseas education loan requirements for banks usually apply at NBFCs for funding their overseas education as it offers relaxed eligibility criteria.
In this article, you are going to know about the four flexible study loan eligibility criteria to apply for an education loan at NBFCs:
100% Funding:
For both secured overseas education loan and unsecured overseas education loan, NBFCs provide 100% funding for your pursuing an international degree unlike that of banks. A student or co-applicant is not required to pay any margin amount to the NBFCs. They offer education loans only for well-known universities and for job-oriented courses.
Loan amount:
For an unsecured loan, a student can get up to 45 lakhs as a loan amount for studying in the USA whereas for other countries he/she can avail loan up to 25 lakhs. For secured loans, there is no such limit for education loans. It totally depends on the market value of the property.
Acceptable Sponsorers:
Parents or siblings are counted as acceptable sponsorers for NBFCs. In the absence of these two, first blood relatives such as maternal uncle or aunt will be counted as sponsorer.
Income criteria for Sponsorers:
Sponsorers play a crucial role in securing an education loan. The eligible income criteria for securing a loan from NBFC is more than 6 lakhs per annum without any liabilities. In another case, even if the student is earning a healthy amount, he/she will not be eligible to become a sponsorer.
There are limited funding options for overseas education in case of looking for 100% finance. Although NBFCs are flexible with the eligibility criteria, the rate of interest of NBFCs is much higher as compared to that of banks. Hence, it is advisable to make an informed decision while choosing an overseas education loan option. For that, it is advisable to the students to do a thorough research. Speaking directly with the loan experts can be beneficial in such cases. We, at Elan Loans provide 360 degrees guidance and assistance for overseas education loan. If you pause anywhere during your NBFC education loan application procedure, feel free to reach out to us. Also, keep watching out this space as we consistently try to resolve the doubts of study abroad aspirants by posting on the related topic.
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