Does education loan require a guarantor?

Yes, you might need a guarantor for an education loan. If your loan amount exceeds the INR 4 lakh limit, you may be asked to provide a security to the borrowed loan amount by adding a guarantor to it. The requirement of guarantor may vary based on your lender as well.

Why do you need a guarantor for a student loan?

By securing a guarantor we can ensure that students pay much lower levels of interest. Government student loans are often inadequate for the real costs associated with being a student. Many students do not have a sufficient credit history and are traditionally susceptible to high interest rates.

Is co applicant necessary for education loan?

A co-applicant or cosigner is an indispensable part of any education loan process, regardless of whether it is a secured education loan or a private education loan without collateral.

Who can be a guarantor for education loan?

As most students have no previous credit history, the parent or guardian has to co-sign for an education loan as a guarantor. Moreover, education loans also require key lender approved collateral such as property documents, fixed deposits, etc.

Can parents be guarantor for education loan?

He took an education loan of Rs 33.75 lakh in 2019 to complete his MBA. He is paying a steep 15\% interest as the lender refused to accept his father as a guarantor as he is due to retire in a year….Synopsis.

Years to invest	Investment needed per month (Rs)
20	10,109
15	20,017
10	43,471
5	1,22,000

Who qualifies as a guarantor?

What is a guarantor? A guarantor is a person who “guarantees” your identity. He or she must be a person who has known you personally for at least two years and knows you well enough to confirm that the information you have given in your application is true.

What is the criteria to be a guarantor?

To be a guarantor you’ll need to be over 21 years old, with a good credit history and financial stability. If you’re a homeowner, this will add credibility to the application.

Who can become a guarantor in education loan?

The Applicant should have a co-borrower such as a parent who acts as guarantor for the loan. Collateral in the form of a fixed deposit etc. is required for loan amounts higher than Rs. 4 lakhs.

How important is cibil score for education loan?

Does education loan affect CIBIL? Yes, your education loan can have a great effect on your CIBIL score as they are just like any loan and have to be repaid to keep up a good CIBIL score. However, the only difference here could be that it can be paid once he/she completes the course (education) and gets employment.

Can my retired parents be guarantor?

You might be asked to provide a guarantor in order to take out a loan or to rent a property. Fortunately, almost everyone has the potential to be a guarantor – often including those who are retired.

Who can be a guarantor for student loans?

A guarantor can be your friend, family member, or colleague. Banks/lenders require, as an added security measure, someone to take responsibility for the principal applicant (primary borrower) in case of loan default.

What documents do I need to be a guarantor for education loans?

To be a guarantor for an education loan, you need to provide a few documents that verify your identity and income details. Have a look at the documents you’ll need when you apply as a guarantor for an education loan.

How do I find a guarantor for a personal loan?

The guarantor will be required to come in for signing and other meetings. Asset and credit ratings of your prospective guarantor. You can also check with your lender if they have a list of guarantors. This can be done based on the type of loan and amount required.

Is it easier to get a student loan as an immigrant?

Getting a student loan is much easier for a U.S. citizen or permanent resident when compared to an immigrant student because a guarantor or co-signer is typically required. What Is a Guarantor on a Loan?