Study Abroad Loan Without Collateral in India

Study Abroad Loan Without Collateral in India

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One of the challenges with collateral-free loans is the higher interest rates. Since the loan is unsecured, financial institutions tend to charge a higher rate of interest compared to secured loans. The interest rates for these loans can range between 10% and 14%, depending on the lender and the applicant’s profile. Students should compare interest rates and choose a loan provider that offers favorable terms and a flexible repayment schedule.

In addition to the interest rate, students should also be aware of other fees associated with these loans. Processing fees, late payment charges, and prepayment penalties are common in most loan agreements. These additional costs can add up, making the overall cost of the loan higher than expected. Students should inquire about all the associated fees upfront to avoid any surprises down the line.

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