A personal loan is a kind of loan that you take for personal use. One can use a personal loan to buy clothes, buy shoes, do some house repairs, or even go for a touring expedition. You can also apply for personal loans for students with no income to pay for school fees, pay wedding expenditures, or even buy a car.
It differentiates personal loans with commercial investments in that, commercial mortgages are taken for business. You might be willing to start a new course or complete your current program at your college but lack money. All you need to know is that you can visit your bank and apply for a loan to cater for your education.
Students require a lot of money to have a smooth study time. They get a lot of challenges to find a reliable source of funds. Students can apply for no documentation personal loans. You then repay it within a given period. The repayment period for personal loans does not go beyond five years.
Which are the different types of personal loans?
Generally, there are two types of personal loans. They include; secured and unsecured personal loans. Let us look at each one of them.
1. Secured personal loans
Secured personal loans require you to provide an asset as collateral. You can give a car, a motorbike, or a land title deed. You can also give your house or any other asset of equivalent or higher value to the amount of money you want to borrow. The bank is free to sell the item you provided as security to recover the money you borrowed if you are not in a position to pay back the money.
2. Unsecured personal loans
Unsecured personal loans require no safety for you to get them. However, they entirely depend on your credit score. You must have created a good relationship with the institution to get the loan. An unsecured personal loan is usually a small amount of money. In occasions where a customer requires large sums of money, then the bank shifts to demanding you to provide security.
There are several institutions which can provide personal loans for students with no income without demanding for security. Either secured or unsecured personal loan, you should always have a purpose of borrowing. Moreover, know the exact amount you need and be sure that you will be able to repay it on time.
How are personal students loans used?
The primary use for student personal loan is to pay for tuition fees. However, there are other necessary expenditures where the loan can help. The loans can cover travel expenses, purchase of learning materials such as books and laptops, house rent, food, and research. The student is the overall manager of the money as he or she receives the money directly into his or her account.
What are the requirements for personal student loans?
As you know, personal loans, and more so the unsecured loans are challenging to come by. Many institutions will prefer commercial loans to private loans because they have high security and give high returns.
For you to secure a student personal loan, you must have a good credit record. If you once borrowed money from another bank and evaded paying, then you are likely to miss a loan from any other lending institution. Alternatively, you can bring a guarantor to assure the company that in case you are unable to pay back the money, he or she will take responsibility and payback.
Most lenders will not ask you of income proof since you as a student might not be employed. They can give you a personal loan with no income verification. Furthermore, the majority of students qualify for personal loans with no income verification as a must.
Where do you get personal student loans?
Several lenders are out there waiting for eligible students to apply for loans. Each of them has their terms and conditions. The following are some of the most popular lenders who provide personal loans for students with no income.
1) Discover Undergraduate Loan
Discover Undergraduate Loans cover all expenses for a student. Their loan caters for school fees, house rent, books, and other necessary things. They have fixed their rates at 6.79% APR. If you have enrolled and gone for half the study time, the company pays the rest until you graduate.
2) Wells Fargo Collegiate Loan
Wells Fargo offers personal student loans to cater for education expense. They even support study abroad programs. They give loans of up to $120,000. Additionally, Wells Fargo provide a grace period of six months after you graduate.
3) Sallie Mae
Sallie loans are very flexible. They have various repayment options. They have interest repayment plans, fixed repayments plans and differed repayment plans. They allow students to borrow at least $1000. You can, however, borrow as much money as you may wish. You can pay back the loan after graduation. Some students may want to repay while still studying. That is allowed here.
Will it be the end of it all if I don’t qualify for a personal student loan?
That is not the end. There are other options you can explore and get a loan. If you have bad credit, you should not lose hope. You can consider below options and try your luck.
Car Title Loans
If you have a car, then you are good to go. Use the car as collateral and get the loan you want. However, the amount will be limited to the cost of the vehicle. In most cases, you receive an amount less than the value of your car.
Home Equity Line of Credit (HELOC)
Some people go to colleges while they already own homes. A home is a valuable asset. The value of your house can guarantee you a certain amount of loan. Home Equity Line of Credit interest rates are low since the house is their offering security. They can allow you to borrow up to 85% of the value of your home.
You can get a loan from Pawn Shop. However, their interest rates are very high.
With your credit card, you can borrow a certain amount of money as an advance. There is always a limit of the amount you can borrow. There is a higher interest rate on this option, although you have to cope with it since you need money.
Do I need to provide a lot of information?
Even though you are looking for a personal loan with no job verification, you still need to provide information about you. You need to submit the following;
- Contact information. It includes your name, email address, phone number, and physical address.
- Banking information. It includes such as account number and routing number.
- Any asset you own that you can use as collateral.
Does it take long to receive the loan?
It takes a short time. In most cases, it cannot go past a month. Once you supply the lenders with accurate details, you wait for the money. The money is deposited directly into your account. It is from the same account where they will deduct their own when the loan is due.
How do you repay a personal student loan?
Most students pay loans after completing their studies. That is when the banks expect you to get a source of income, be it a paid internship or permanent employment. The repayment pattern depends on the amount of loan taken, and the agreements made between you and the lender.
The purpose of the loan also determines the repayment pattern. You might need to pay Small credit for small expenses to within a short time.
You might have taken a short term loan as you wait for another source from somewhere else. You might pay such a loan even before you complete your studies. Majority of students take loans to repay after they finish schooling. It is important to note that interest starts accumulating just after the first disbursement.
Again, it is essential to note that you should make repayments at the agreed time. If you do it early, there is a penalty. You should make sure that you read all the terms and conditions to avoid embarrassments. A personal loan with no income verification usually attract heavy fines when one fails to start repaying on time.
Majority of employers are required to ensure that new employees with study loans have their salaries automatically deducted every month to repay the loan.
What if you fail to get employment immediately?
It is not automatically that you get employment immediately you finish your college. You may take time before getting a source of income. Most lenders give you a grace period. The grace period is the time given to someone to make arrangements of repaying a loan. It comes after the due date, and you can start paying back your credit without penalties.
You need to pay back your loan. As a student, you must keep in mind that the personal student loan you take is just like any other loan. Take advantage of the grace period and find ways to start repaying your loan. A good credit record will even assist you later if you will need first time home buyer loans with zero down to acquire your home. Penalties are usually painful, and you might find yourself paying a lot of money several times what you borrowed.