When you decide to apply for an education loan and go to a lender, did you face the question- “Who will be your co-applicant?”. The questions that popped into your head might have been - “Who is a co-applicant?”, “Who can be a co-applicant for my loan?” among others. 

This article will answer those questions and address an important question - “Will I get an education loan without a co-applicant?” 

Before attempting to answer that question, it is essential to know the definitions of two loan terms: Co-applicant and Financial Co-applicant. 

Who is a co-applicant?

A co-applicant of an education loan is a person who is responsible for the loan repayment if the main applicant is not able to repay the loan. As added security to repay, lenders need co-applicants. There are two types: including relatives like parents, siblings, cousins, uncles, or aunts are called financial co-applicants. On the other hand, primary co-applicants are usually close family members like parents, siblings, spouses, or in-laws. Primary co-applicants aren’t needed for loan approval but are necessary for contact purposes.

Who is a financial co-applicant?

A financial co-applicant serves as a co-borrower along with the primary co-applicant on the application for an education loan. If the main applicant does not have enough income or financial stability, then the role of a financial co-applicant is to act as the financial guarantor who would be responsible for paying back the loan  

When you apply for an education loan, in most cases you need a co-applicant. A co-applicant is usually a parent or guardian who signs the loan with you and agrees to help pay it back in case you end up not being able to repay the loan. It’s easier for a bank to trust you and approve the loan if you have a co-applicant because they know there’s someone else who can help repay the loan.

If you have really good grades or are going to a good university, the bank might not require a financial co-applicant. You still need a co-applicant even then. 

However, some people mistakenly interchange the terms ‘co-applicant’ and ‘financial co-applicant’ and believe they can take a loan with no co-applicant. But that’s not true. You always have to have a co-applicant, even if you don’t need an extra financial co-applicant

Now addressing the most awaited question: “Can I still get an education loan without a co-applicant?”

Luckily, it is not impossible to get an education loan without a co-applicant as there are alternative options for the students can consider While most lenders do require that you have a co-applicant, there are some scenarios and paths to a loan when you don't.                 

Facing challenges finding a co-applicant? Don’t worry, discover all the loan options, including those from foreign lenders that don’t require one. Get in touch with WeMakeScholars by requesting a callback today                                                                              

Why is a co-applicant important in an education loan?

Loan lenders seek security for the amount of money they lend. And that security is in the form of a co-applicant. Usually, the primary borrower will be the student. The student takes the loan money and goes for their higher education. They are not financially stable and finding a job will take significant time. Due to these reasons, if the main borrower cannot pay back the loan, then the co-applicant will have to pay it back.    

If the co-applicant cannot repay the loan, the financial co-applicant comes into play to clear off the loan.

This is why having a co-applicant is a compulsory thing in taking an education loan.

Getting an education loan is impossible without a co-applicant. Few lenders waive off the financial co-applicant in some exceptional cases but never the co-applicant.

But, what if you fall under these conditions:

  • Do not have a co-applicant.
  • Have a co-applicant with a very low income and a bad CIBIL. 
  • Do not have a financial co-applicant to back up the co-applicant.
  • There is no collateral you can pledge to get a collateral loan in which the co-applicant’s profile is not that important.
  • You cannot bear the burden of the loan yourself

In the above situations, getting an education loan would be nearly impossible.

Is there no solution? There is!

Some lenders give education loans without the requirement of a co-applicant. Who are they and what are their loan products?

Let us get into their details right away.

Or you can watch this video where all of this information is clearly explained by our co-founder Damini Mahajan 

Need help navigating education loans without a co-applicant? Request a callback today, and let our financial officers at WeMakeScholars guide you through all available options completely free of charge. 

Foreign lenders for education loan

Until now, you only knew you could take a loan from public and private banks in our country. But did you know you can borrow money for your abroad education from foreign lenders as well? 

The two lenders we will talk about here are:

 Foreign lenders do not ask you for a co-applicant to lend you money for your abroad education. 

Do you not have a co-applicant for your education loan? Foreign lenders come to your rescue.

Mpower Finance:

Mpower Finance was established in 2014 with its headquarters in Washington, USA. They fund students globally to study in the United States of America and Canada. They give out loans in USD.

Loan parameters Details 
Who can apply for the loan?
  • An undergraduate student in their first year of degree.
  • Graduate students from their first year.
  • Any student from across the world with an admission letter from the top 400 universities in the USA and Canada.        
Maximum loan amount 50 thousand USD 
Rate of interest Undergraduate: 13.99%
Masters courses: 11.99% in USD
Processing fee 5% in USD
Moratorium  Course duration + 6 months
Repayment tenure 10 years

 

Prodigy Finance:

Prodigy Finance is a UK-based company that gives out loans to students worldwide. The following are the loan product details:

Loan parameters Details 
Who can apply for the loan?
  • You must be admitted to a school and program they support.
  • You must be looking to study abroad
  • You must reside in one of the countries on their list.
Maximum loan amount 100% Financing
Rate of interest 9 to 10.5% in USD
Processing fee 2.5% in USD
Moratorium Course duration + 6 months
Repayment tenure 15 years

Our team will always be there to help you with getting a loan without a co-applicant. Contact our expert financial officers who will help you with the loan.

Hope this article makes you understand how important a co-applicant is in an education loan and answers your question “Will I get an education loan without a co-applicant?” 

Whenever you are ready, request a callback and we guide you with your loan completely free of cost.