how to get collateral free loans for students?
In India, there are several options for students to consider when looking for collateral-free loans:
Education Loans from Banks: Many banks in India offer education loans for students without the need for collateral. These loans are usually offered at a lower interest rate and have a longer repayment period. Banks like SBI, PNB, Canara Bank, Bank of Baroda, etc. are providing education loans for students.
Central Government schemes: Some central government schemes like the Central Sector Interest Subsidy Scheme, and the Merit-cum-Means based scholarships scheme, provide interest subsidy on education loans to students from economically weaker sections.
State Government schemes: Some state governments in India also offer education loans and scholarships to students based on financial need or academic achievement.
Private lenders: Some private lenders also offer education loans to students without the need for collateral, however, the interest rate and terms may vary from lender to lender.
Crowdfunding: With the rise of online platforms, students are able to create a campaign and ask for donations from friends, family, and even strangers. This can help to raise money for their education.
It's important for students in India to research and compare the different options available to them before making a decision. They should also be aware of the repayment terms, interest rates, and other fees associated with the loan.
It is also important for students to have a co-applicant or a guarantor, who will be responsible for repaying the loan in case of any default. The co-applicant could be a parent, guardian or any other close relative, who will have to provide their financial and personal details as well.
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