Commencing your abroad journey gives you exposure to varied panoramas of academic as well as professional growth. However, the cost of studying overseas can often become a daunting hurdle. With the high cost of studying, many students find themselves grappling with financial strains. In this scenario, the quest for financial aid ends with opting for an overseas education loan.
There are numerous financial institutions that offer study-abroad loans to students. Unlike, other financial institutions, NBFCs play a pivotal role by offering an education loan without the need for collateral. These financial lenders have swiftly gained a thriving momentum due to the seamless processing and have become a sought-after choice for students.
The value of a dream may be immeasurable, but taking the right financial path is essential to turning that dream into reality. Thus, this article will delve into the basics of securing non collateral education loan for abroad studies from NBFCs. So, stay right here and read ahead.
What are NBFCs?
Non-Banking Financial Companies (NBFCs) stand out as vital sources of education loans, particularly for those aspiring to study abroad. NBFCs can be a boon when traditional banks are facing challenges, especially with Non-Performing Assets (NPAs) and low CIBIL scores in the education loan category.
Though Non-Banking Financial Companies may not be under the constant supervision of the government, the Reserve Bank of India (RBI) plays a crucial role in regulating and monitoring them. The RBI ensures that NBFCs abide by the guidelines, keeping a watchful eye on their activities.
NBFCs in Spotlight
Before moving ahead let us look at the popular NBFCs that offer overseas education loans to students.
| Institution | Unsecured Loan Amount | Interest Rate |
| HDFC Credila | Up to 65 Lakhs | 11% – 14% |
| Auxilo | ||
| Incred | ||
| Avanse |
Now that you have an idea about the popular financial lenders, let us move ahead and know the advantages of opting for an education loan for students to study abroad from NBFCs.
Know the Upsides
Here are some of the advantages of taking an overseas education loan from NBFCs.
- Maximum Expenses Covered
NBFCs offer 100% coverage, including all aspects of your educational and living expenses overseas. They typically cover, tuition fees, travel, expenses, accommodation costs, expenditures on books, laboratory fees, library fees, and other expenses related to your education. Thus, lessens the financial burden and enables students to focus on their studies.
- Loans for Everyone
One of the highlighting factors of NBFCs is that they offer education loans to students with good academic records no matter how their financial profile is. They provide pre-visa or pre-admission loan approvals, regardless of the CBIL score, financial profile of the applicant, and absence of a co-applicant. They also offer education loans on the basis of standardized test scores like GRE.
- Seamless Processing with Swift Disbursement
Since students do not have to pledge any collateral as security, there is not much paperwork involved. Thus, loan processing becomes faster and hassle-free. A student can expect this process to extend for not more than a week, provided any other procedures are involved. Additionally, the processing fees can range between 1% to 2% of the total loan amount.
Eligibility Criteria for Loan Applicants
Before applying for an overseas education loan, it is important to check whether you meet the eligibility criteria. Thus, we have mentioned them below.
| Applicant |
| Indian Nationality Age should be above 18 years Secured admission to a recognised overseas institution Academic Profile must meet NBFC’s eligibility criteria |
Wrapping Up
Though this article might have given you an overview but is important to know the details of how to get education loan for abroad studies from NBFCs. Thus, you can look for top overseas education loan advisors and choose the best option for you. Good luck!