Education Loan NBFC for Abroad Studies

According to the Global credit rating agency CRISIL, NBFC education loans are projected to experience a significant growth of up to 40% in the financial year 2023-24. Over 90 percent of the education loans are for studying abroad, with India-based courses accounting for the rest.

What are NBFCs?

Non-Banking Financial Corporations or NBFCs provide financial services and lending options as an alternative to traditional banks. The key distinction between banks and NBFCs is that banks primarily use customer deposits to lend money, whereas NBFCs raise funds from investors, financial institutions, and banks to offer loans to customers. Due to lighter regulations, education loan NBFC often offer more flexibility to their customers. 

Best NBFC in India for Education Loan

HDFC Credila, Avanse, Auxilo, and InCred are the best education loan NBFCs in India. Below is a comparative list of NBFC providing education loan of the best NBFC in India for education loan without collateral:
 

*Repayment during studies for all the NBFCs mentioned above is simple interest or partial simple interest

Features of Education Loans NBFCs

Abroad education loans from NBFC are financial aid designed for students who wish to study abroad. These education loan NBFCs are usually unsecured loans and cover tuition fees, living expenses, travel expenses, and other study-related expenses. NBFCs offering abroad education loans typically have specific eligibility criteria, including academic performance, course selection, and the reputation of the foreign institution. The interest rates,  , and loan amounts offered may vary across NBFCs. They take into consideration several factors before approving the loan.

Eligibility Criteria of Abroad Education Loans from NBFCs

To be eligible for an education loan NBFC, a student must meet the following criteria:

The student must be an Indian citizen

The student must be between the ages of 18 and 35 years

The student must have a good academic record

The student must have secured admission to a recognized university or college abroad

The student must have a co-applicant who has a steady source of income and a good credit score

The student must have scored decent scored in pre-requisite exams such as IELTS, TOEFL, and GRE.

Documents Required for NBFC Education Loan 

The documentation required for an education loan NBFC without collateral varies depending on the lender. However, some common documents that are usually required include -

Applicants documents:

Identity proof: PAN/ Passport/ Driver’s License/ Voter ID card or government-issued identification document

Education loan application form

Address proof: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill/ Driving license/ Aadhaar card

Past academic record

10th standard mark sheet

12th standard mark sheet

Undergraduate result (semester-wise)

Entrance exam results (e.g. GMAT, GRE, TOEFL, etc.)

Proof of admission: admission letter (A conditional admission letter is also applicable).

Statement of expenses

2 passport-size photographs

Loan A/C statement of one year (if applicable)

Bank account statement of the student (if applicable)

Co-applicant’s documents

Identity proof: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document

Address proof: recent copy of telephone bill/ electricity, water, piped gas bill or copy of Driving license/ Aadhaar card

2 passport-size photographs

Co-borrowers bank account statement for the last 6 months

In case of another ongoing loan, then the loan A/C statement of 1 year

Income proof for salaried co-applicant/guarantor

Salary slips for the last 3 months

Copy of Form 16 of the last 2 years or copy

Bank account statement for the last 6 months (Salary account)

A brief statement of assets & liabilities of parent/ guardian/ other co-borrower

Income proof for self-employed co-applicant/guarantor

Business address proof

Last 2 years IT returns ( If IT Payee)

TDS certificate (Form 16A, if applicable)

Certificate of qualification (for C.A./ doctor and other professionals)

Brief statement of assets & liabilities of parent/ guardian/ other co-borrower

Bank account statement for the last 6 months

Advantages of Abroad Education Loan NBFC

Explore how education loan NBFC provide abroad education loans without collateral by watching our detailed video.

Disadvantages of Abroad Education Loan NBFCs

Pro Tip: Situations where NBFCs are a perfect option for an education loan

NBFC education loans offer an alternative financing option for students pursuing higher education. These loans cater to the needs of individuals who may not qualify for traditional bank loans or government-sponsored educational funding. While exploring education loan options, it is essential to consider the terms and conditions associated with education loan NBFC.

This includes being aware of additional charges such as processing fees, prepayment charges, and penalty fees. Properly understanding and comparing these factors will empower borrowers to make informed decisions and choose the loan that best suits their needs.

Education Loan from NBFCs via GyanDhan. 

When considering education loan NBFC, GyanDhan offers a seamless and transparent process, making the entire loan application and disbursement journey hassle-free. The expert education loan counselors at GyanDhan compare the loan products of different lenders to identify the most suitable loan option for your needs. This involves comparing the interest rates, loan amounts, repayment terms, processing fees, and other features of different lenders.

We bring the best NBFC for education loans for you. Best of all? We do not charge any kind of fees or commissions from the applicants at all. To start your education loan journey today, check your loan eligibility now!

Frequently Asked Questions

Which are the top NBFCs for an education loan in India?

Incred

Avanse

HDFC Credila

Auxilo

What are the NBFC interest rates for an education loan?

What are the repayment terms for an education loan from an NBFC?

Can I transfer my education loan from NBFC to a bank?

What is the processing time for NBFC education loans?

Is HDFC Credila an NBFC?

What is the difference between an NBFC and a Bank?

Is it safe to take an NBFC education loan?

Is it safe to take education loan from NBFC?

Yes, it is safe to take education loan from NBFC. NBFCs are leading education loan lenders in India. They are registered with RBI and are top choices for students seeking an education loan without collateral.