It can be challenging to obtain an international education loan without income proof as most lenders require some form of income verification to ensure that the borrower is capable of repaying the loan. However, some student loan options are available for study-abroad students. Microfinancing companies and fintech firms like Prodigy Finance and MPOWER Financing offer financial assistance without any proof of income to help students seeking to pursue higher education but are unable to get loans from banks and non-banking financial companies (NBFCs). These loan providers lay their faith in the earning potential of students and do not consider their credit scores.
Education Loan without Income Proof in India
Getting a loan without income proof in India can be difficult as most banks and financial institutions require borrowers to provide income documents to prove their ability to repay the loan. However, there are a few options available for those who do not have income proof, such as:
- Secured loans: Secured loans are backed by collateral, such as property or gold. If you have a valuable asset, you can use it as collateral to secure a loan even if you don’t have income proof.
- Co-signer: If you have a family member or friend with a stable income, they can co-sign the loan with you. This means that they will be equally responsible for repaying the loan if you cannot make payments.
- Fintech Companies: These institutions provide small loans to people who do not have access to traditional banking services. They usually do not require income proof and may be more flexible in their lending criteria.
- Peer-to-peer lending: Peer-to-peer lending platforms bring together beneficiaries with individual lenders who are ready to lend funds. These lenders may be more willing to lend to borrowers without income proof, but they may charge higher interest rates.
However, it is imperative to note that obtaining a loan without income proof can be risky, as it may lead to default and further financial difficulties. It’s always a good idea to explore other options first, such as finding a job or starting a business, before resorting to taking on debt.
Also Read: SBI Education Loan for Studying Abroad without Collateral
Providers of Education Loan without Income Proof
Some of the leading providers of education loans without income proof are microfinance institutions like MPOWER Financing and Prodigy Finance.
This fintech company offers loans to international students from more than 150 nationalities. Headquartered in London and with branch offices in Chennai (India), Cape Town (South Africa), and New York (USA), Prodigy Finance provides education loans without income proof to students who are pursuing graduate degrees in domains like Public Policy, Engineering, Law, and Business in over 800 universities/colleges/school. The loans are based on the earning potential of students and not on the credit history of candidates or co-signers.
Tabulated below are the details of Prodigy Finance for students planning to study abroad at some of the top universities in the world:
|Minimum Loan Amount||USD 15,000|
|Maximum Loan Limit||80% of the cost of the course to 100% of the cost of attendance|
|Origination Charge/Administration Fee||Up to 5% of the loan amount|
|Annual Percentage Rate||13% and above|
|Repayment Period||Up to 20 years|
|Moratorium Period||Course Duration + 6 months|
Must Read: Top Private Student Loans for Abroad Education
MPOWER Financing is a financial technology company that provides education loans to international and Deferred Action for Childhood Arrivals (DACA) students studying in the United States and Canada. They specialize in offering loan without income proof to students who may not have access to traditional forms of financing due to their immigration status or lack of credit history. MPOWER considers factors beyond traditional credit/CIBIL scores, such as academic success and career potential, to assess the creditworthiness of applicants.
The table below contains key details of MPOWER international education loans:
|Minimum Loan Amount||USD 2,001|
|Maximum Loan Limit||USD 100,000|
|Expenses Covered||100% of the education expenditure|
|Interest Rate for Undergraduate Courses||13.99% (APR- 15.01%)|
|Interest Rate for Graduate Programmes||12.99% (APR- 13.98%)|
|Interest Rate Category||Fixed|
|Repayment Period of Principal Loan Amount||Up to 10 years|
|Interest Payment Period||During the course duration and 6 months after course completion|
Students going for abroad studies can apply for education loans without income proof at Prodigy Finance and MPOWER Financing.
This fintech company levies an APR of 13% or above on the sanctioned loan amount.
No. Nationalized and private banks do not provide study-abroad education loans without proof of income.
Need financial assistance regarding studying abroad? Reach out to Fly Finance now!