Get instant loan offer suitable to your profile !
On this Page:
Learn how to secure an education loan without collateral in India in 5 min. Discover eligibility criteria, application processes, and top lenders offering collateral-free loans.
Are you a student who dreams of studying abroad, but having no collateral raises a self-doubt ‘Can we get study loan without collateral?’ Do not worry. Education loan for abroad studies without collateral is a possible thing. With varying loan limits and conditions, education loans for abroad studies display an array of smart options for students from diverse financial situations.
The majority of lenders who provide non-collateral education loan for abroad require a financial co-applicant, as will be discussed later in this blog. However, international lenders like MPOWER Financing and Prodigy Finance can provide education loans even without a financial co-applicant. In addition, there are public banks, private banks, and NBFCs that can also offer study loan without collateral, with varying loan amounts. Therefore, this blog will provide a comparative overview of all these lenders, which will help you make an informed decision.
A non collateral education loan for abroad is a type of loan provided to students for their higher education expenses without requiring any security or guarantor. These loans are offered based on the applicant's academic record, admission to a recognized institution, and future earning potential. They are generally unsecured education loans, meaning borrowers do not need to pledge assets like property or shares. Interest rates may be higher compared to secured loans, and the loan amount can vary based on the lender's policy and the borrower's profile.
Let’s start with some basics that is by understanding the difference between abroad education loan without collateral and with collateral.
Basis of difference | Education loan with collateral | Education loan without collateral |
---|---|---|
Property or fixed deposit, as security for the loan |
Does not require collateral, but may require a financial co-applicant |
|
Loan Amount |
Generally higher depending on the value of the collateral |
Lower compared to loans with collateral |
Interest rates may be low due to security pledged |
Interest rates may be high due absence of security |
|
Eligibility Criteria |
Relaxed as the collateral serves as security |
Stringent as the lender has to rely on the borrower's creditworthiness and co-applicants financial stability |
Loan Processing Time |
More due to documentation, property valuation and more. |
Less due to relaxed requirements |
Read more about: Bonafide Certificate for Education Loan
The different lenders that can provide you with collateral free education loan for abroad are listed below.
Now that you have the answer to the question ‘Can we get student loan without security?’ let’s have a look at different lender’s education loan amounts and interest rates. The table below provides you with information about lenders that can provide you with education loan for abroad studies without collateral but a financial co-applicant is required.
Lender Name | Loan Amount | Interest Rate |
---|---|---|
Up to 7.5 Lakhs INR |
10.65% - 11.50% |
|
Up to 40 Lakhs INR |
9.80% - 11.30% |
|
Up to 50 Lakhs INR |
11.00% - 11.50% |
|
Up to 50 Lakhs INR |
10.85% - 12.50% |
|
Up to 50 Lakhs INR |
11.50% - 13.25% |
|
Up to 65 Lakhs INR |
11.25% - 13.00% |
|
Up to 75 Lakhs INR |
12.50% - 13.50% |
|
Up to 65 Lakhs INR |
11.25% - 14.00% |
|
Up to 60 Lakhs INR |
12.00% - 14.00% |
Many of you often ask one question, in particular, i.e. Can I get education loan without guarantor? The table below mentions international lenders that can provide you education loan for abroad studies without collateral and co-applicant / gurantor.
Lender Name | Loan Amount | Interest Rate |
---|---|---|
Up to 100,000 USD |
12.99% - Graduate Programs
|
|
Up to 100,000 USD |
12.00% - 14.00% |
There are certain eligibility requirements that you would have to meet to ensure that you can get a non-collateral education loan for abroad. The eligibility may differ depending on the lender but some common parameters are-
Let’s discuss the eligibility for foreign education loan without collateral in detail
Given below is a generalized list of documents required for getting an education loan to study abroad without collateral.
Documents required from the applicant for study abroad loan without collateral
Documents required from the co-applicant for study abroad loan without collateral
Self-employed co-applicants -
Salaried co-applicants -
Read more about: Education Loan For Management Quota Students
The process of starting a loan application without collateral is quite simple. All you need to do is follow the below-mentioned steps.
There are several benefits of abroad education loan without collateral. Few of them are listed below -
If you have any further questions about education loan without collateral, please visit our YouTube channel. We have a detailed video that explains the topic thoroughly
As a study abroad candidate, your main priority should be finding education loans with lower interest rates and the necessary funding. From the perspective of a student, we recognize that selecting the right option for student loan unsecured is challenging due to the choices available. Thus we are providing you with an overview of how to choose the best lender.
Public Sector Banks > Private Banks > NBFC > International Lenders
Now that you have all the information related to getting an education loan to study abroad without collateral, you will be able to make an informed decision and choose the best lender for you. Do not worry if you are still confused, let GyanDhana help you in choosing the best lender. All you have to do is check your loan eligibility.
Several banks provide education loans without collateral for studying abroad. Some notable examples include:
It's important to note that the availability of these loans and their specific terms may vary. Check your loan eligibility and determine the best loan option based on your academic and financial profile.
Yes, you can get a US education loan without collateral as well all you got to have is a good application for applicant and co-applicant. The loan amount can vary but for a general idea -
In cases where the lender does not require collateral and a co-applicant, they mostly check your academic profile, the course and university you have opted or, and potential estimated future earnings. They have a tight list of universities/colleges in which they are sure you would be able to earn good and make repayment on the loan. Thus this is how they are able to provide you with a loan.
One of the best types of lenders for education loans without collateral is private banks. Apart from that, you can also get an education loan without collateral from NBFCs and International lenders. Now coming to the amount, can maximum limit for private banks and NBFC ranges somewhere between 50 - 70 Lakhs INR, and for International lenders, you can get a loan upto USD 100,000.
Yes, you will have to incur processing fees when you take an education loan without collateral. Depending on the lender you may be asked to pay 0.5% - 1.5% of the loan amount as the processing fee.
A few reasons that lead to the rejection of your application to get an education loan without collateral are -
Yes, you can secure an education loan of up to 15 Lakhs without collateral from public banks like Union Bank of India (UBI), as per the bank's lending policies for higher education.
Private banks such as Axis, ICICI, and IDFC FIRST may offer up to 20 Lakhs in education loans without requiring collateral, depending on the course and applicant's eligibility.
Both public banks like UBI and private banks such as Axis, ICICI, and IDFC FIRST can provide up to 25 Lakhs for education loans without collateral, subject to specific terms and eligibility criteria.
For an education loan amounting to 40 Lakhs without collateral, NBFCs like HDFC Credila, Avanse, InCred, and Auxilo are viable options, offering specialized loan products for higher education.
Check Your Education Loan Eligibility
Ask from a community of 10K+ peers, alumni and experts
Trending Blogs
Similar Blogs
Network with a community of curious students, just like you
Join our community to make connections, find answers and future roommates.. Join our CommunityCountry-Wise Loans
Best Lenders for Education Loan
ICICI Bank
Axis Bank
Union Bank
Prodigy
Auxilo
HDFC Credila
IDFC
InCred
MPower
Avanse
SBI
BOB