It can be very problematic for a student to get a loan although they also may have difficult and unforeseen life situations associated with expenses. In such situations, student loans can be of great help.
Microfinance organizations are ready to provide loans without proof of income and guarantors. In most cases, they work with people over the age of eighteen. With the help of MFOs, it is possible to get a student loan online.
Microfinance organizations understand that students cannot combine university studies with full-time employment, but this does not mean that they do not have the funds. In this case, loans online become a suitable solution for students.
Why would a student need money?
Studying at a university is currently a costly business. Very often young people have to leave their hometowns to go to study in the capital or other distant lands. Not everyone has can parents who pay for studying. And students have many needs:
- payment for a place in a hostel;
- purchase of books;
- buying new gadgets, etc.
A loan for students can be taken around the clock, and minimum paperwork is required. Most importantly, the MFI does not ask about the purpose of the loan. Money can be spent on any of your needs.
Why are student loans more profitable than usual loans?
Getting a student loan from a bank is like trying to conquer Everest with-out preparation. Unfortunately, banking structures rely on mature people with an already established level of income, property and good credit history. Most students do not have any credit history at all.
Fortunately, banks are not the only solution. Using online lenders, every young person will be able to find the most optimal option. Money can be received around the clock, online, only with an ID. The main condition in all MFOs is reaching the age of 18 years. One cannot but agree that the conditions are more than lenient.
Why is it difficult to get a student loan?
An attempt to get a loan by a student aged 18 to 20 can be accompanied by obvious difficulties:
- Lack of credit history. Credit organizations have a negative attitude towards borrowers without a credit history. The way out of this situation will be to apply for a loan from a lender who does not check credit history;
- Lack of official work, permanent income. The lender understands that the full-time student does not have a permanent job, which means there is no permanent income. Such a borrower in most companies will refuse to provide money, especially large amounts;
- Failure to meet the minimum requirements for receiving money. Not all lenders offer fast and urgent loans to students from the age of 18. Some of them lend only to borrowers who have reached the age of 21 years. In this case, the client simply does not meet the minimum requirements and his/her application will be rejected immediately.
Where to get a student loan?
Students can get financial assistance from almost any microcredit company. Most MFIs work with such clients, but the conditions for the provision of borrowed funds are not always favorable. For example, some microfinance organizations offer loans with a higher interest rate or limit the size of the loan. Borrowing money on such conditions is impractical.
Many online lenders provide loans even to unemployed students on favorable terms. An adult student of a university can borrow funds for a period of up to 30 days. The overpayment will be small, so financial assistance will not turn into a debt trap.
The application can be submitted online around the clock. You just need to quickly fill out a questionnaire on the website and send it for consideration. The lender will instantly check the information and make a decision. If the loan is approved, you will get the money within half an hour.
Loan requirements for students
Microfinance organizations have similar requirements, almost all of them indicate only age limits. If the borrower is over 21 years old, then he or she can apply for a student loan and urgently receive the requested amount. For citizens aged 18-21, there are fewer offers, but there are still plenty of them, so the range of offers will still be decent, you just need to look at the age range of the lender.
Eligibility criteria include:
- the borrower has reached the age of 18;
- a valid bank account and mobile phone;
- U.S. citizenship or legal residency.
Loans for students are issued online, you can apply around the clock from any device.
How to get money after approval?
Microfinance institutions offer different methods of transferring funds to applicants. It is better to decide on this method in advance and indicate the appropriate details in the questionnaire.
Funds are transferred by the following methods:
- to a card or account at any bank;
- to an electronic wallet;
- sending funds by money transfer;
- cash at the office.
The most popular loans for students are online loans because the applicant receives the funds instantly.
Why choose an online loan to a bank account?
If we compare all existing methods of providing funds, transfer to a bank account will be the fastest and easiest for several reasons:
- This is a remote method, there is no need to visit the lender’s office. It saves time and efforts;
- The speed of transfer exceeds other methods. The funds are sent to the account instantly. On average, the borrower receives the money within 6-12 hours. In rare cases, there are delays of up to several hours;
- No identification is required, as is the case with QIWI or Yandex.Money. If 4. An Internet loan guarantees borrowers from different regions to receive money without leaving home. It often happens that a person lives in a remote region where there are no microfinance company offices. The only way to get money on a loan for him is to take an urgent online loan on the card;
- Online lenders most often work around the clock, which is a big plus for students and borrowers who in other time zones. In this case, they have the opportunity to receive money at any time;
- Students get money without providing information about their work. Almost all lenders who offer cash loans in offices ask for information about the work and also check the specified information by calling employers, colleagues, friends and relatives. In some Internet organizations, they ask no questions about the place of work at all, and the specified data are rarely checked by calls. That is why fast and urgent loans for students on a bank account can be obtained only on the Internet.
Features of lending
The procedure will not take much time. Apart from this, there are other reasons why student loans have become so popular:
- Lack of paperwork. There is no need to collect proof of income and official employment;
- No need to provide collateral. Loans are provided without guarantors, collateral and the consent of relatives;
- 24/7 availability. You can get a loan without leaving your home at any time of the day and night;
- High percentage of approvals. Loans are provided even to students with a bad credit history. In addition, it is an excellent solution for improving credit history.
The disadvantage of this type of lending is a high interest rate. However, there are no commissions or insurance. There is also the option of early repayment.
Stages of getting a student loan online
To take an online loan for students, you need to go through a few simple steps:
- review the loan rates and terms and make sure that the parameters of the loan suit you;
- fill out a short borrower questionnaire, indicating personal data and account number;
- checking the application and submit it;
- when approved, sign a loan agreement;
- wait for the money to be transferred to the card.
Before you sign a loan agreement, be sure to read the document. To avoid difficulties in repaying borrowed funds, apply for a loan only after you are sure that the rate and amount of payment are suitable for you, as well as the term for its payment.