25 June 2022 20:12

Will one’s education loan application be rejected if one doesn’t have a payslip providing collateral?

Can I get education loan without collateral?

Both public and private banks give education loan without collateral. The difference is the loan amount. Public banks give maximum of INR 7.5L while Private banks can lend up-to INR 40 Lakhs.

Can my education loan get rejected?

When it comes to education loans, most lenders have very strict policies regarding the CIBIL scores of both, education loan applicants, as well as their co-applicants. A CIBIL score lower than 600 is one of the reasons behind an education loan rejection in a majority of the cases.

Can I get education loan without collateral from SBI?

Overview : State Bank of India Education Loan Online
For overseas education, SBI primarily offers education loan with collateral. Unsecured loans, i.e. loans without collateral are available only for the best of the best colleges, and that too up to ₹ 7.5 lakhs only.

What is collateral for a student loan?

For this reason, collateral may take several different forms. Typically, however, it is a home, a parcel of land, or jewelry or other assets. If the student later misses several consecutive payments and the loan is declared in default, this collateral is seized by the lender as payment.

What are the documents required for non collateral education loan?

At least 6 months of their bank statement. 3 years ITR documents.
5. Basic Documents to be submitted by both the loan applicant and the co-applicant are:

  • KYC (Know Your Customer) Documents to be submitted at NBFCs.
  • Passport size photograph.
  • Pancard Copy.
  • Aadhaar Card Copy.
  • A copy of the loan applicant’s (student) passport.

What can we give as collateral for education loan?

Education loans are offered in both secured and unsecured variants. The bank may ask for a third party guarantee or collateral depending upon the value of the loan. Banks insist on collateral for loans above Rs 7.5 lakh. Collateral can be in the form of insurance policy in favour of the bank.

Why does student loan get rejected?

Your loan gets rejected if you provide the wrong collateral such as agricultural land which isn’t acceptable by the lender for an education loan. The bank will accept house, fixed deposit, insurance, or any tangible collateral which is on the borrower’s name.

Why is my student loan declined?

You could be denied student loans if you’re trying to borrow too much, your income is low, or you otherwise appear as a high risk to lenders. If you’re denied for student loans, try for federal loans, apply with a cosigner, or look for a bad credit loan.

Can banks reject education loans?

Yes, an education loan request can be rejected if the borrower doesn’t satisfy the conditions put forth by the lender. The conditions can be academic, economic or any other. If the institute in which you want to get admission doesn’t have a good placement record, banks won’t show interest in lending you.

Is guarantor required for education loan?

Yes, you might need a guarantor for an education loan. If your loan amount exceeds the INR 4 lakh limit, you may be asked to provide a security to the borrowed loan amount by adding a guarantor to it.

What are the documents demanded by the banks for sanctioning education loan?

Documents required for Education Loan

  • KYC documents.
  • Bank Statement / Pass Book of last 6 months.
  • Optional – Guarantor Form.
  • Copy of admission letter of the Institute along with fees schedule.
  • Mark sheets / passing certificates of S.S.C., H.S.C, Degree courses.

What are the property documents required for education loan?

What are the collateral documents required for education loan? Does every loan applicant need them?

  • Property deed/chain of sale deed.
  • Allotment letter by Municipal Corporation/Government authority.
  • Latest property tax statements, maintenance tax/bill.
  • NOC from society/builder.

Is income certificate necessary for education loan?

Documents Required from Co-applicant (if salaried):
Identity proof. Last 3 months salary slips or salary certificate on employer’s letterhead. Last 2 years Form 16 from employer or last 2 years Income Tax returns. Any other income proof that is not reflected in the above mentioned documents.

Which bank provides fastest education loan?

Axis Bank brings you Education Loans for studies both in India and abroad starting from Rs. 50,000 at attractive interest rates. With an Axis Bank Education Loan you can enjoy a host of benefits such as simple documentation, quick loan disbursal, tax benefit u/s 80(E), long repayment tenure, etc.

Which bank gives the best student loans?

5 Best education loan banks in India

  • Benefits of SBI education loans.
  • SBI Education Loan Interest Rates.
  • Benefits of Axis Bank Education Loan.
  • Axis Bank Education Loan Interest Rates.
  • Benefits of HDFC education loan.
  • HDFC education loan interest rates.
  • Benefits of PNB education loan.
  • Benefits of Canara Bank Education Loan.

Which bank is better for education loan?

Compare Top Education Loan Offers 2022

Name of Bank Interest Rate (p.a.) Processing Fees
SBI Up to 9.05% Up to Rs.10,000
Axis 13.70% to 15.20%/td> Nil to Rs.15,000 + GST
Bank of Baroda 8.85% to 10.85% 1% of loan amount up to Rs.10,000
HDFC 9.55% to 13.25% Up to 1% of loan amount + tax

Does Axis Bank education loan require collateral?

Axis Bank, for instance, offers up to Rs 40 lakh without any collateral security. Covers varied needs: Education loans cover both academic and non-academic fees such as tuition fees and living expenses. Cost-effective: Interest rates for education loans are usually lower than other types of loans.

Can I get 20 lakhs education loan without collateral from SBI?

SBI Student Loan Scheme-
This scheme is for study in India cases where you can get up to 20 lakhs. Though you can get up to 7.5 lakhs through an SBI student loan without collateral, for an amount above 7.5 lakhs and under 20 lakhs you are required to pledge collateral to take a secured loan against it.

Can we get education loan without collateral Quora?

Yes you can. Banks in India do provide education loans upto 7.5 lakhs without collateral security.

Can I get education loan without parents?

It is to keep in mind that you get an education loan without a financial co-applicant but a primary co-applicant is mandatory for contact purposes only and their financial status will not be checked. Co-applicant should be of your first family i.e parents, parents in law, siblings, and spouse.

Can you get student loans without collateral and cosigner?

An education loan without co-applicant and property is also called an unsecured education loan. It is a type of loan where the borrower is not required to attach any collateral security and guarantor against the provided loan amount. Aspirants can borrow this type of education loan from International lenders.

Can friends be co-applicant for education loan?

The co-applicant can be anyone right from blood relatives, cousins to family friends. The only requirement is that he/she must fulfil the financial eligibility criteria for the co-applicant.