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Educational Loan
Collateral Loans (Secured Loans)
- Definition: Collateral loans, also known as secured loans, require the borrower to pledge an asset (usually property, a fixed deposit, or other valuable assets) as security for the loan. If the borrower fails to repay the loan, the lender can seize the pledged asset to recover the outstanding amount.
- Eligibility: Lenders typically require collateral for loans with larger amounts or if the student has a limited credit history. The value of the collateral should match or exceed the loan amount.
Non-Collateral Loans (Unsecured Loans)
- Definition: Non-collateral loans do not require the borrower to pledge any asset as security. These loans are unsecured, and approval depends mainly on the student's academic profile, financial background, and the lender’s assessment.
- Eligibility: While these loans are available to a larger pool of students, they are typically offered to those with a strong academic record, a good credit history (if applicable), and an assured future career. The lender assesses the student's ability to repay based on these factors.
Non-Co-Signer Loans (Without a Co-Applicant)
- Definition: A non-co-signer loan, also known as a no co-signer loan, is a type of educational loan where the borrower is not required to have a co-signer (someone who agrees to take responsibility for the loan in case the primary borrower fails to repay). This is especially important for international students who may not have a U.S.-based co-signer.
- Eligibility: While these loans are available to a larger pool of students, they are typically offered to those with a strong academic record, a good credit history (if applicable), and an assured future career. The lender assesses the student's ability to repay based on these factors.