The student loan without deposit
Even today, studies remain a privilege because of their cost. This is why most of the students resort to the student loan. However, they do not all have sufficient guarantees to obtain such credit. The student loan without deposit can then appear as a solution.
Student loan interest without deposit
A student loan is a consumer loan granted to a student to finance his studies and / or his daily life (costs of accommodation, travel, equipment, etc.). It allows you to benefit from a sum of money, up to € 75,000, which will often have to be repaid at the end of your studies. Unallocated, it is generally not necessary to justify expenses.
Although specific, it is treated by lending institutions as a loan. This is why a bank is never obliged to grant it. In addition, it analyzes the borrower's file to verify that the loan will indeed be repaid. It then examines the repayment capacity, depending on the studies followed by the student in particular, his banking past, his personal situation but also his guarantees. They make it possible to minimize the risk of indebtedness for lack of being able to justify regular or sufficient income. The student must then find a person to stand surety so that he can temporarily take his place in the event of unpaid bills. Anyone of full age can in principle act as a joint surety for a student, whether it is a family member or a friend.
A problem can then arise. Either the student does not find anyone in his entourage who accepts to bear this burden. Either those agreeing to stand surety do not offer guarantees deemed sufficient by the lender. This is classically the case when the student comes from a family with modest income which is not only unable to pay for studies, but which in addition cannot be used as collateral. In order to give the changes to everyone to access higher education, there is the possibility of taking out a student loan without a deposit, that is to say without a relative coming to guarantee the credit subscribed.
There are three main ways to get a student loan without a deposit:
- State guarantee;
- The student solidarity guarantee fund;
- The guarantee by a specialized organization.
The student loan without guarantee guaranteed by the State
Under certain conditions, the State can provide a guarantee for a student loan without a guarantee. The student does not then need to find a close relative or a parent agreeing to be a guarantor for him, or even to meet means-tested conditions.
However, he must justify being registered in an establishment in United States preparing a higher education diploma, namely a university, a high school preparing for a BTS, a business or engineering school, etc. also a condition linked to age since the benefit of such a student loan without a deposit is reserved only for students under 28 years of age. The borrower must also be French or European residing in United States for at least 5 years (more precisely have the nationality of a country in the European Economic Area).
A fundamental condition is the subscription of the student loan without guarantee with one of the five partner banks: Société Générale, Banques Populaires, Crédit Mutuel, CIC, Savings banks. If it is not necessary to be a customer in the bank to obtain the credit, the establishment remains free to refuse the loan, in particular in view of the personal situation of the borrower, even if the State provides its guaranteed student loan without surety. The process consists of filing an application with the bank, even online.
When the request for a student loan without a deposit is accepted by one of the banks mentioned, the amount is granted to the student for a maximum of € 15,000. The latter will generally only reimburse at the end of his studies, which is why a minimum period of 2 years exists. However, it is possible to repay interest during the course. In the event of non-payment, it is the Public Investment Bank (Bpifrance) which will cover the monthly payments but only up to 70%.
Please note, an annual envelope is given to Bpifrance as part of the guarantee provided for the student loan without deposit. The 2016 envelope having been fully consumed, it was not until 2017 that the system started again. The official launch will be announced by the State and partner banks.
The student loan without deposit guaranteed by the student solidarity guarantee fund
In order to allow students to finance their lives within and outside of their studies, the LMDE (center for social security and mutual health insurance) and the Banque Populaire Group have created the association Autonomie & Solidarité for students. in 2007. This association set up the Student Solidarity Guarantee Fund (FGSE), which makes it possible to advance, without a deposit from a parent or a third party, for a loan.
It therefore makes it possible to obtain a student loan without a deposit but is subject to a double condition. First of all, the student must be a member of LMDE. In addition, he must take out the loan from the People's Bank.
In the event of default, the FGSE takes charge of the unpaid bills. However, this still does not dispense with the classic examination of the bank's financing file, which is why, in the event of insufficient long-term repayment capacity of the student loan without a deposit, the credit may not be granted.
The student loan without guarantee guaranteed by a third-party guarantee organization
A student loan without parental or relative surety can also be obtained when a surety organization is used as collateral. Most credit institutions offer this possibility through partnerships. It is therefore often useful not to do the steps alone and to go see a specialized broker who has the necessary contacts. It usually allows you to get a student loan without a deposit at the same rate as students with a deposit.
In addition, partnerships often exist between banks and grandes écoles. They then make it possible to obtain a student loan without a guarantee from a third party. Even though it does not have a clear and official affiliation with the student's school, some banks, taking into account the borrower's personal situation, in particular his course, can grant a student loan without a deposit. The idea is that the risk is limited given the future income of the borrower. This mainly concerns the major business & engineering schools of national renown. It is in a way the chosen course which, here, will constitute the guarantee for the lender.
In short, some tips for student loans without surety
There are therefore suitable solutions for students who do not benefit from the support of relatives to take out a student loan without a deposit. We consider that this concerns half of student borrowers. First, the State offers a guarantee system with relatively simple access conditions. However, the annual envelope allocated is not sufficient to satisfy all applicants for student loans on bail. This is why several mechanisms have gradually developed: the FGSE, specialized brokers, partnerships with schools. Their vocation is to encourage the autonomy of young people by participating in the creation of their future via the student loan without deposit.
Please note, all these devices, and in particular the student loan without a guarantee with a state guarantee, do not create a right to credit for the students. The banks retain the freedom not to grant a loan and assess the personal situation of each borrower in view of the file established in support of their request. It should be kept in mind that even if the student takes out a student loan without a deposit, he remains responsible for the credit and its repayment.
Institutions study the student's repayment capacity in order to avoid over-indebtedness and the risk of default. The course and motivation are particularly taken into account as a guarantee of future security. Especially since a student loan often presents a deferred repayment of one to several years after taking out the loan, allowing the young person to repay only from the time he enters working life. This is why the more the student is in a promising sector with strong opportunities, and where the salaries are relatively high, the more his request for a student loan without a deposit will be favorably received by the banks.
However, in the absence of a guarantee from a loved one, the important thing is to contact credit institutions and identify the various student loan opportunities without a guarantee. First of all, you have to clearly identify your need, analyze your ability to commit and then compare the different offers, taking into account the rates charged and the terms of repayment. Also, keep in mind that most unsecured student loan contracts are entered into after negotiation. It is therefore necessary to master the few basic rules of credit and not hesitate to contact a member of the borrowing organization directly or call on a broker. Never forget to play the competition and use online credit simulators & comparators.