Banks and financial institutions are often reluctant to offer student loans without a cosigner. However, what if you don’t have a cosigner? Won’t you be able to get an education loan without a co-applicant?
International lenders offer education loans without a co-applicant. However, these lenders keep a list of selected universities for which they give out the loans. Thus, if you’re not going to study at these universities, you won’t be eligible for a student loan without a co-signer.
With Indian banks, the scenario is different. Here you can get an education loan without a financial co-applicant. However, you can’t get an education loan without a primary co-applicant.
Difference Between A Financial Co-Applicant And A Primary Co-Applicant?
A Financial Co-Applicant is a family member of the loan applicant who is needed when the applicant lacks a primary co-applicant with a steady income. Eligible relatives for this role include siblings, first cousins, maternal and paternal uncles or aunts.
On the other hand, a Primary Co-Applicant is someone who co-signs the education loan agreement with the applicant. Their financial status does not impact eligibility. Applicants can select their parents or any immediate family member, even if they lack a stable income or are retired pensioners, as primary co-applicants.
3 Scenarios Where You Can Get A Student Loan Without A Co-Signer
Taking An Education Loan From A Government Bank
Government banks take collateral to secure education loans. Furthermore, government banks offer you a payment-free moratorium period. During the moratorium period, you don’t have to pay the interest for the loan. Thus, the need for a co-applicant lowers even further.
Having Work Experience
The banks or financial institutions still need you to have a primary co-applicant for contact purposes. The banks won’t check the primary co-applicant’s financial profile.
Going For International Lenders
International lenders offer student loans without a co-signer. Furthermore, these lenders charge between 9% to 10.5% interest on the loan. However, note that since the funds are offered in USD, the interest rate for an Indian student will be 14% in Indian currency.