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What are Mokusei's 'INCOME SHARE EDUCATION LOANS' and 'INCOME SHARE PRE-CLOSURE LOANS'?
Mokusei's 'Income Share Education Loans' and 'Income Share Pre-closure Loans' are loans that are given in exchange for a share in your future income as opposed to traditional loans that charge a fixed interest.
'Income Share Education Loans' are loans given out to fund your higher education whereas 'Income Share Pre-closure Loans' are loans that allow you to Pre-close your existing Education Loan and switch over to Mokusei's Income Share Model.
Repayment of these loans is proportionate to the income you earn in your future. If after your education you earn more because you get a good job, you repay more. If you earn less in the future because of a low paying job, you repay less. If you earn nothing because you don't have a job, you repay nothing in return.
These Income Share Education Loan Providers are typically High Net-worth Individuals (HNIs) or Investors who want to make good returns on their investments even if it comes at a risk. In traditional Education Loans you pay a fixed monthly EMI to repay your loan and accrued interest irrespective of whether you get a good job after completing your education or not. Moreover, most traditional educational loan companies ask for collateral as safety. This creates a big pressure on the student & their families.
In Mokusei's Income Share Loans there are no monthly EMIs. Instead, you sign a legally binding Income Share Agreement (or ISA) with your Loan Provider (HNIs/Investors) and pay a pre-decided percentage of your annual income as loan repayment instead of a fixed EMI. This payment is made once a year instead of monthly installments.
The best part is that you do not need any collateral for availing Mokusei's Income Share Education Loan or Income Share Pre-closure Loan. In fact, you can free up the collateral stuck or tied-up with your current Education Loan company using the money you get in an Income Share Pre-closure Loan
You can choose to propose what percentage of your annual income will you share with the Loan Provider and for how many years. If the HNIs/Investors like the terms you propose, they lend you the money you need for a share in your future income.
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Till date, Mokusei has helped 100+ students to fully or partially secure their Education Funding with INR 20+ Crore disbursed as Income Share Education Loans. You can apply for Mokusei's Income Share Education Loan by filling an Application Form on the website and by paying the relevant Application Fee.
[Please Note - Application Fee is non-refundable]