Can students who do not have a collateral security, become eligible for private loans?
Generally private loans charge higher rate of interest as they are considered unsecured loans. Being unsecured loans, there is no need for a collateral security to be deposited by the students seeking loan. What happens if the students do not have credible repayment history? Most of the private loans do not pay much credence to credit history while giving loans. As the private loans are also not authenticated by the government, therefore, credit history is not given that big an importance. And even if the credit history is considered and the student does not command a credible repayment history then they might be charged a higher rate of interest. Another requirement that students might also need to fulfill would be to get a surety who can co sign your loan. A good way of improving the credit history is to pay off the loans on time. Will a student be eligible for private loan if he has funds to pay his tuition and fees? Apart from tuition and fees, education expenses also entail living
