Most people wish to pursue their academic dreams but due to poor funds, they are unable to continue with their academic dream. This can be quite disheartening.
If you are in a situation like that, it might interest you to know that their financial institutions are where you can apply for student loans and the most amazing thing is that there is no collateral for it.
This looks unreal, right? However, it exists. These loan banks serve as the hope for most students to pursue their academic dreams without being ladened with the necessary funds to foot it.
The same applies if you want to pursue your studies in Canada as an international student, there are some of the best banks you can apply for loans without the option of collateral.
The sad part is that not everyone would be getting a loan to study in Canada without collateral, this is because the lenders reject most of the applications.
Regardless, if you want to apply for a loan to study in Canada, there are financial institutions that would help you if you fit their criteria.
Do you have plans of applying for a loan with collateral to study in Canada? In this article, I will be going into detail on the best banks for student loans and loan apps without collateral.
What are Non-Collateral Education Loans
Non-collateral education loans are educational loans where the lender doesn’t take collateral for an unsecured loan.
However, for you to get this loan, there are sets of processes to take and you must fulfill the requirements of the financial institution before you can get the loan.
Eligibility Requirements for Non-Collateral Loans
As I stated previously, you have to be considered eligible before you can get non-collateral loans. Numerous international students are applying for non-collateral loans, so it is only natural that you have to be eligible before you can get the loan. Here are the eligibility requirements you have to fulfill if you wish to get the non-collateral loan:
Academic Profile
You have to have at least score 60% in 10th, 12, and also in degree.
Co-Applicant or CIBIL Score
This is an important factor in the application process and a deciding factor too. This is because, in a situation where the student who got the non-collateral loan doesn’t pay back in the future, their financial co-applicant would be mandated to pay back the money.
Courses/Degrees
There are specific courses or degrees that the lender outlines you will have to be opting for if you want to be eligible for the loan.
University/College
There are specific universities or colleges outlined by the lender. You can always look up the published universities provided by private banks.
Related: Facts about proof of funds
Documents Required for Non-Collateral Loans
If you wish to go for a non-collateral document, there are important documents you have to present. You have to provide important files if you wish to make the process hasten up and for you to stand a chance. Here are some important documents required for non-collateral loans:
- KYC documents
- 2 Passport-size photographs
- Bank Statement of the previous 6 months
- A copy of the Offer letter of the particular Institute/university along with the fees schedule
- Mark sheets of S.S.C., H.S.C., entrance test, or Degree courses.
- Income proof includes salary slips
Best Banks Offering Non-Collateral Loans in Canada
Are you an international student and you want to opt for a non-collateral loan; hence, you are wondering about the banks that offer non-collateral loans. Here are the best banks offering Non-collateral loans for international students in Canada:
- HDFC Bank Education Loan
- Bank Education Loan
- Axis Bank Education Loan
- SBI Education Loan
- Bank of Baroda Education Loan
- Vijaya Bank Education Loan
- Corporation Bank Education Loan
- Allahabad Bank Education Loan
- Personal Loan By Cities
- Education Loan in Ahmedabad
- Education Loan in Bangalore
What are the Benefits of Taking Student Loans Without Collateral?
There are numerous benefits of taking a student loan without collateral. It is not surprising that numerous international students are opting for it as their final means of pursuing their academic dreams.
Do you want to opt for a non-collateral loan as a student because you are low on funds and you are wondering what the benefits are? Below are some of the benefits of non-collateral loans:
Resume Your Education Without Financial Stress
You can resume your education without being bothered by financial stress. Most students are out of school because they do not have the necessary help to fund their education. However, with non-collateral loans, you can resume your educational journey without hassles.
Non-Collateral Loans Cover a Lot
Since non-collateral loans in most cases cover a lot; both academic and non-academic fees. Hence, with the loan, you can take care of your academic and non-academic expenses without being withheld in any way.
Helps Build Financial Discipline
The payment method, depending on the agreement, helps you to build financial discipline. Regular payment according to the agreement helps you build a good credit score which might prove important in the long run; maybe, during periods when you want to take a home loan, auto loan, and others.
Get a Loan Easily
Since the money being lent out is naturally not too big, considering the non-collateral rule, so far you are considered to tick the right boxes, and you may receive it within two weeks of application.
Final Thoughts
The non-collateral loan for students helps students who are unable to study in their dream institutions due to low funding have an opportunity to further their studies.
With the non-collateral loan, you can have a new lease on life and won’t have to bother about furthering your studies again. However, you need to be eligible before you can be given the loan.
This is because numerous students from various parts of the world are applying for this offer; hence, you have to stand out to be considered.
Do you want to opt for a non-collateral loan in Canada and you are wondering how to go about it? In this article, I went into detail about all you need to know about it.