Collateral Free Education Loan
Education in India has increasingly evolved to become costly. It has risen much beyond what students can afford. Also, its importance as a prime motivator of life cannot be refuted. To study at any level, when the fees cannot be afforded, educational loans are the only recourse. Educational loans have become available for higher education, school education and online training. Many institutes even tie up with banks for providing meritorious students loans to study what they wish.
Educational loan is mainly of two types
It is important to understand what both these terms mean to be able to make an informed decision while availing a loan.
Educational Loans and Collateral- What is the connection?
An educational loan can be either secured or unsecured as discussed above. A secured loan is one that is granted with collateral securities and unsecured is one that is without any collateral. Collateral is a term given to immovable properties like land, flats and houses or any liquid asset like FD, shares etc that a financier can use from a borrower to secure the loan.
If the borrower stops repayment or loses his ability to pay, the bank will seize the attested, attached collateral and its value to recover its losses.
What if one does not have any asset for collateral?
There are many in this country who cannot pledge their assets for money. A lot of significance is attached to land and other assets. For them, collateral free unsecured loans are available. Government banks can be approached for availing loans up to 4 lakhs. There are 4 NBFC’s that provide collateral free loans beyond 7.5 lakhs.
There are certain points one needs to keep in mind before taking a loan from these NBFC’s however-
• High-interest rates (13%-14%)
• High processing fees usually depending on loan amounts
• Interest rate to be paid may usually come during the study period itself
What if a collateral free education loan is the only option?
The loan procedure for collateral free education loan is much easier than that of those with collateral. Sometimes, one needs a loan that is an ideal mix of-
• Collateral free
• Low rate of interest
• Easy application process
This is where TachyLoans fits the bill like a hand in glove. TachyLoans offers loans that are best suited for all categories of students. They offer collateral free loans for school education, higher education, professional courses, online training and skill development and salaried loans.
Reasons to choose TachyLoans
• Instant loan approval
• Flexible EMI plans
• Collateral free loans
• Loans for many purposes
• Transparent online process
• Hassle free application process
• No prepayment charges
• Easy to access and convenient
• Cost efficient
• Maintenance of privacy
• Instant e-KYC process
• Smart, digital experience
Easy Three step process for Loan
1. Apply Online
2. Upload documents
3. Loan sanction