Living the dream of attending college in a foreign country but stranded when it comes to funding? Don’t worry, you are not alone. For several students every year, the biggest problem is not admission, but securing the right education loan for their study abroad journey. In a rush to get things done, many students unknowingly make mistakes that cost them delays, rejections, or unmanageable debt.
If you are planning to apply for a study abroad loan without collateral, there is no room for error. Let’s learn about the most common and avoidable mistakes students make during their application process for an education loan abroad without collateral.
Not Comparing Lenders
Applying to the first lender you find is risky. Each lender deals with different interest rates, repayment schedules, eligibility criteria, paperwork, and so on. You must always compare public banks, private banks, and NBFCs before finalizing your lender for your education loan abroad without collateral.
Ignoring the Co-applicant Requirement
You should not assume that a no-collateral loan means no co-applicant requirement. Several lenders require a financially strong co-applicant. However, they must have a stable income, a good credit score, and all the required documentation.
Choosing the Wrong Course or Country
If you're applying for a loan to study a program with poor career prospects or in a lesser-known country, your application may be rejected or come with stricter terms. Lenders prefer students opting for high-demand programs such as STEM courses in the USA, Canada, or other countries with strong job markets. Choosing reputable universities and career-focused courses greatly increases your chances of loan approval and post-study success.
Incomplete Documentation
Submitting a loan application process without the necessary documents can lead to delay or sometimes rejection. Make sure that you are preparing documents like your admission letter, academic records, cost of attendance (COA), co-applicant income proof, passport, bank statements, and more.
Not Understanding Loan Terms
If you are only looking for overseas education loan interest rates while in your loan process, you are doing it wrong. Do not ignore key aspects like processing fee, moratorium period, prepayment charges, FOREX charges, and more. Ensure that you thoroughly question your lenders, read and understand the fine print before accepting the loan.
Simplifying Study Abroad Loans Without Collateral
Navigating the world of international education loans can be overwhelming. When looking for loans without collateral, they often come with terms and conditions. That’s why many international students turn to overseas education consultants like Nomad Credit.
Whether you are heading to the UK, the US, Canada, Germany, or Ireland, Nomad Credit simplifies the process by evaluating your profile. Their platform assists you in comparing interest rates, co-signers, and payment terms, so it is easier to access funding despite the lack of assets to use as collateral.
