International Student Loan Without Co-Signer


In earlier times, obtaining an education loan abroad was a daunting task due to ignorance and a lack of expert guidance, but it has become simpler over time. Now that aspirants are applying in large numbers for education loans, unsecured loans have become advantageous for those who don’t have collateral.

In unsecured loans, there are some factors that are considered crucial for determining the eligibility of applicants. Among various factors, the co-applicant's financial capacity is the key component that determines whether an unsecured loan will get approved or not. Many students have this doubt in their minds: if they don’t have any co-applicants, are they still eligible for an education loan or not? And what are the other ways in which they can apply for an education loan abroad even without having a co-applicant?

Unsecured education loans are mainly dependent upon the academic scores, financial ability of the applicant and co-applicant, preferred college and university, course, and country.

Why is a co-applicant required on an education loan?

In the whole process of the education loan, the co-applicant is an integral part of it.

Lending loans is not an easy task for financial institutions. Banks need some sort of assurance for the loans so that the lending of loans will not turn into a non-performing asset for them. Students have to deal with rejection many times since they don’t have co-applicants.

Need of co-applicant in secured and unsecured loans:

Unsecured loans do not require the borrower to pay back the loan amount or provide any form of security, whereas secured loans do. If we look at the bank's education loan policies, it would not be wrong to say that they followed stringent criteria to lend the student loans. Banks have a strict policy and consider only parents or any close relative to be the co-applicants on study abroad loan along with the applicant. This criterion has made the education loan process more complicated for many students who, for various reasons, are unable to include their parents or families as co-applicants in education loans. However, with the advent of international lenders in the Indian education loan market, it has now become possible for students to apply for education loans even without any co-applicants.

Scenarios of an education loan approved without a co-applicant:

The bank has listed full-fledged documentation of guidelines for proceeding with an education loan application. However, education loans have become a bit of a complex process that requires a lot of documentation that is mandatory to be fulfilled by students.

There is a whole set of mechanisms followed by banks for education loans. Among the set of mechanisms, there are requirements for having a co-applicant, which turns out to be a crucial requirement. But as mentioned earlier, with the advent of international lenders like Mpower Finance and Prodigy Finance, it is now possible to get the loan without a co-applicant.

Let’s have a look at the possible scenarios where the students have gotten approval for their study abroad loan even without any co-applicants. There are various factors considered by banks before sanctioning the loan amount to the borrower. If the student meets the criteria laid down by the banks, then banks are more likely to grant the loan. Apart from having a co-signer, there are some other mechanisms that are followed by banks in considering the profile of an applicant for granting a loan. These factors are mentioned below:

  • Academic performance: NBFCs and banks both consider the academic score of the applicant before approving their loan. The bank is more likely to approve the loan for students who have a strong academic record. The main reason why banks consider the academic scores of the candidate is that they reflect the great earning capacity and future potential of the student.
  • Courses chosen for study: Lenders place a lot of importance on technical and STEM courses. Students who have secured admission to any foreign university for STEM and other courses like MBBS, law, and management have great chances of getting their loan granted by the bank.
  • Admission to Top-Tier Universities: Students who are able to secure admission to one of the top universities in the USA, UK, Australia, or Canada are more likely to get the loan. Banks have their own list of top-tier universities and colleges. If a student is enrolled in these universities or colleges, then banks can easily provide loans to them.
  • Credit history of the applicant A good CIBIL score that ranges between 680 and 790 proves the creditworthiness of the borrower. On-time payment of dues and EMIs improves the credit score of the borrower, thus making them more eligible for taking the loan for future requirements. In an unsecured loan, the CIBIL score is another major factor for loan approval by the NBFCs, who consider the credit history of the applicant to grant the loan. If the applicant has a positive history of credit without any default payments, they are more likely to get the education loan.
  • Scholarship awards: banks and NBFCs also accept the profiles of those applicants who have secured the scholarships, and it is another way to manage your educational expenses in case your application has been rejected or you don’t have a cosigner.

Other available options for applicants without a cosigner: 

Earlier, obtaining an overseas education loan was a tedious process. It takes a lot of time for the loan application to be approved due to the plethora of factors mentioned above. But, with time, the whole process has changed. From their complicated nature to the early process in which education loans have become much easier to apply for, approval processes have also become much more flexible.

It's possible now to pre-determine the EMIs, loan amount, and calculation of education expenses like tuition fees, living costs, and other major expenses. The calculation can be done with the support of tools like the EMI calculator to calculate future earnings, the interest amount payable on a loan, and university comparison tools. However, interest rates charged by international lenders like MPower Financing and Prodigy Finance are slightly higher in comparison to those charged by Indian loan providers due to the USD and INR conversion. Even a little change in the interest rate will make a huge difference in the loan repayments in the coming years.

Underneath, we have provided the complete details of the overseas education loan scheme provided by MPower Financing and Prodigy Finance.

Features of Loan




Not Required

Not Required

Loan Credit Limit

US $2,001 to US $100,000

80% of the total loan amount

Repayment Tenure

10 years

15 years

Annual Percentage Rate

Graduate: 13.72% APR

Undergraduate: 14.75% APR


Admin Fees





For the average individual, the education loan process can be a daunting task. Anyone wishing to take student loan for abroad studies for expenses and manage them smoothly without stress will surely need expert guidance. They will ease the loan process, help meet the eligibility requirements, and, in general, expert guidance will support you in connecting with the right kind of lender.

To get an instant student loan online for overseas education, an individual can contact the Education Loan Guru. 

By Education Loan Guru