According to the Global credit rating agency CRISIL, NBFC education loans are projected to experience a significant growth of up to 40% in the financial year 2023-24. Over 90 percent of the education loans are for studying abroad, with India-based courses accounting for the rest.
If you have taken an unsecured education loan, then the co-applicant’s income is an important factor. So if the co-applicant has an irregular income source, the loan can get rejected. This is because the co-applicant will have to make interest payments during the study period. Also, the co-applicant will have to submit their ITR and bank statements to be eligible.
If your co-applicant has an irregular income source, it is best to take a secured education loan as the income is not a factor. Only the value of the property will be taken into consideration.
The decision will be based on the income that is left after deducting your liabilities. The income of the co-applicant is an important factor as he/she will be required to make interest payments. As you have mentioned that you have two existing loans, then your co-applicant’s income should be more than enough to add on a third liability and comfortably fulfill the said liabilities.
Making timely EMIs will have a positive effect on your credit history, another factor that is taken into account while evaluating the applicant’s profile.
I’m assuming you mean to say that given that the income of the co-applicant is not enough, will providing a collateral help offset some of that.
There are 2 ways you can go about it.
Add another co-applicant: You can add multiple co-applicants to a loan application. The salaries and the obligations are grouped which can help increase your eligibility
Provide a collateral: While banks don’t generally offer partially secured loan products (they primarily offer either secured or unsecured products), NBFCs do consider the collateral provided. They can also offer different payment terms including partial interest payments during your period of study which will again increase your eligiblity.
Hello, i am training as a commercial pilot and i ve completed my ground training, now i am looking forward for my flying training for that i am gonna need an educational loan , can you please contact me
Thankyou
Hi,
That’s really amazing to know, commercial pilot is a very good career option. I hope you cleared all the examinations including Radio telephony. Could you please let me know where are you planning for flying school (India or outside India)? Based on this information, I’ll be able to help you more.