Education loan is the only source for most of the students who are financially backward and helps them pursue their education. In early days, only government banks used to provide education loans. The government banks used to sanction the loan only the applicant provides any collateral as security. A collateral is nothing but any property like house, land, FD, shares, etc. Collateral is asked so that if the applicant fails to repay the loan, the collateral can be seized. But, today, few government banks and most private banks along with NBFC are providing Eduvanz Education Loan Without Collateral.The organizations have come up with this idea so that it will be helpful for those who do not own any assets.

Why people are preferring loans from NBFCs?

The government banks that provide education loan without collateral are RBI, HDFC, SBI, HSBC, IDBI, and Punjab and Sind bank. The above said banks provide loan only if the applicant meets the criteria. There are many private organizations and NBFCs that provide loans without the requirement of collateral. Though NBFC offer a bit high rate of interest, usually 1% greater than the government banks, their processing time is faster and less documentation work is required. Usually, an NBFC can loan provide the loan within 1week of application and there’s will not be any upper limit for loan, whereas the government banks ask for collateral and the processing time is relatively high with more documentation work. This is the reason why private banks and NBFCs are preferred mostly.

Loan process to get education loan without collateral from NBFC:

The loan process is simple and short.

•Apply for the university or institution you wish to study.
•Submit all the required documents.
•Along with acceptance letter and all other documents, approach the NBFC.
•Get the paperwork done, and avail the loan.

For More Details Visit : Eduvanz

Author's Bio: 

But, today, few government banks and most private banks along with NBFC are providing education loan without collateral.