Can I use Power of attorney for foreign education loan
10 months ago
My grandfather gave me special power of attorney, i want to take abroad study loan on it. Am I liable for it without any co-applicant or guaranteer.
A.Dear Client,
Power of Attorney can come with various terms and conditions.
Added to this, various countries have different laws when it comes to co-applicant or guarantor even for a basic student loan. Since power of attorney means the banks are not dealing directly with the person who legally owns that money, there is a higher possibility that your wish to take a loan without a co-applicant or guarantor might not be valid in most jurisdictions.
However, since you mention "Special" power of attorney, you can try researching whether these "special" terms can be applied in the country of your choice to study there on a loan without a guarantor based on the power of attorney given to you.
If this question persists, consult an advocate.
Thank you!
A Power of Attorney is not considered as a collateral security for the purpose any loan sanctioned by FI/NBFC for any purpose. So you need to arrange a Guarantor or Co-applicant (with or without security that depends upon the discretion of the Bank) to obtain an educational loan from the Bank.
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