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Explore banks that give education loans without collateral for abroad. Discover the eligibility and process to get an education loan for abroad studies without collateral.

Pursuing higher education overseas has become a sought-after ambition for many individuals. It provides an opportunity to broaden their skills, acquire global exposure, and improve their employment chances. However, paying for an overseas education often appears expensive, leaving students and their families struggling to find funding.

Education loan proves to be the most useful solution in these situations. However, not every applicant necessarily has collateral to offer. If you are wondering if you can get a non-collateral education loan for abroad study, the answer is yes.

An education loan without collateral provides an acceptable means to get into renowned colleges all around the globe. These loans remove the requirement for collateral, making them an appealing choice for people who do not have significant assets to offer as security. Discover the eligibility criteria and know more about which banks in India offer education loans without collateral for abroad studies.

What is a Non Collateral Education Loan for Abroad?

Abroad education loans without collateral are a type of student loan given to students for their higher education costs overseas that doesn't require any security or guarantors. These are unsecured loans that do not require collateral or security that are mandatory in secured student loans. Instead, lenders assess whether applicants are creditworthy candidates with high potential for future income and high-quality courses.

The applicant's academic standing, acceptance into a reputable school, and prospective earnings are taken into consideration when making this loan offer. Since they are often unsecured student loans, borrowers are not required to pledge assets like real estate or stock.

Compared to secured loans, interest rates could be higher, and the loan amount might change depending on the borrower's circumstances and the lender's policy.

What are the Differences Between Collateral and Non Collateral Education Loans?

There are a few fundamental differences between education loans that are offered with or without collateral. These differences are as follows:

Loan Parameters Education Loan with Collateral Education Loan without Collateral
Collateral Requirement Requires a property or fixed deposit as collateral Does not require collateral (requires a financial co-applicant)
Loan Amount Higher (depends on the value of the collateral) Lower compared to loans with collateral
Interest Rates Lower interest rates due to security pledged Higher interest rates due to absence of security
Eligibility Criteria Flexible as collateral serves as security Stringent because the lender relies on the borrower's creditworthiness
Loan Processing Time More due to documentation and property valuation Less due to a flexible requirement

Comparison of Different Lenders Providing Education Loan without Collateral

When it comes to getting an education loan without collateral for studies abroad, students have many options. The types of lenders that offer abroad education loan without collateral are as follows:

Lender Type Loan Amount Interest Rates Processing Fees Repayment Terms
Public Banks Usually up to ₹20 lakh for domestic education and ₹1.5 crore for foreign education. Generally lower, ranging from 6.8% to 10% Minimal or no processing fees Flexible repayment tenures, often up to 10-15 years
Private Banks Loan amounts for domestic education might reach ₹50 lakh and for overseas education, ₹1 crore. Slightly higher compared to public banks, ranging from 9% to 13% May charge processing fees ranging from 0.5% to 2% of the loan amount Repayment tenures usually between 5 to 15 years

Which Banks in India Give Education Loans without Collateral for Abroad Studies?

Here is the answer to your question about which bank gives education loan without collateral for abroad in India:

Lenders/Banks Loan Amount Interest Rate
SBI Up to ₹7.5 Lakhs 10.65% - 11.50%
UBI Up to ₹40 Lakhs 9.80% - 11.30%
Axis Bank Up to ₹50 Lakhs 11.00% - 11.50%
ICICI Bank Up to ₹50 Lakhs 10.85% - 12.50%
IDFC FIRST Bank Up to ₹50 Lakhs 11.50% - 13.25%
HDFC Credila Up to ₹65 Lakhs 11.25% - 13.00%
Avanse Up to ₹75 Lakhs 12.50% - 13.50%
Auxilo Up to ₹65 Lakhs 11.25% - 14.00%
Incred Up to ₹60 Lakhs 12.00% - 14.00%

Lenders that Give Abroad Education Loan without Collateral and Co-applicant

By giving education loans without collateral in India, many banks and lenders ensure students have seamless access to student loans. These student loans then help them not only fund their education but their dreams as well. These lenders, however, often make it mandatory to have a co-applicant.

Among all these, Propelld stands as one of the most reliable solutions to apply for the education loan without collateral and co-applicant for study abroad.

If you are wondering, can I get an education loan without a guarantor in India? The answer is yes. Here is a list of the Indian lenders that offer education loans without collateral and co-applicants:

Lender Loan Amount Interest Rate
MPOWER Financing Up to $100,000 12.99% - Graduate Programs
13.99% - Undergraduate Programs
Prodigy Finance Up to $100,000 12.00% - 14.00%
Propelld Up to $100,000 12.00% - 14.00%

Eligibility Criteria for Abroad Education Loan without Collateral

Non-collateral education loan for abroad studies makes it easy for students to get their education without worries. It also makes it simpler for students to get an education loan without collateral. However, to avail of these education loans, students and applicants must meet a certain set of criteria. You need to fulfill these specific eligibility criteria:

  1. Indian Citizen: A student who is applying for an abroad education loan without collateral must be an Indian citizen.
  2. Academic Profile: Collateral-free education loans are often approved based on the academic profile of the students. This necessitates students having a strong academic profile.
  3. Co-applicant Finances: As these loans don't require collateral, they demand having a co-applicant with stable finances.
  4. Selected Countries and Universities: These education loans are often granted to students studying in renowned universities accepted by the banks or lenders.
  5. Test Scores: Applicants applying for education loans must score good marks on entrance tests like GMAT, GRE, TOEFL, and IELTS.

Documents for Abroad Education Loan without Collateral

Once you confirm your eligibility, you must gather a certain set of documents to apply for the education loan for abroad studies without collateral.

1. Loan Application Form

You must first get the application form for an education loan without collateral from your chosen lender or bank. You must carefully fill out the student loan application form.

2. Identity Proof

Now, you must submit the following documents for identity verification:

  1. PAN Card
  2. Passport
  3. Voter ID card
  4. Aadhar

3. Address Proof

You must also submit these documents that help lenders verify your address:

  1. Passport
  2. Telephone bill
  3. Electricity bill
  4. Water bill

4. Academic and Banking

Besides all these, here are a few banking and academic documents that you must submit:

  1. 10th
  2. 12th
  3. Undergraduate mark sheet
  4. Test scores of entrance tests like TOEFL, GRE, IELTS, etc.
  5. Proof of admission
  6. Statement of expenses
  7. Passport-size photographs 
  8. Loan account statement of one year (if any)

5. Co-applicant Documents

You must supply these documents of the co-applicant when applying for a study abroad loan without collateral:

  • Identity proof 
  • Address proof 
  • Income proof

6. Self-employed Co-applicants

If the co-applicant is self-employed, you must supply these documents:

  1. Business address proof 
  2. Last 2 years, IT returns 
  3. TDS Certificate 
  4. Certificate of Qualification 
  5. Bank account statement (last 6 months)

7. Salaried Co-applicants

If the co-applicant is salaried, you must supply these documents:

  • Salary slips (last 3 months)
  • Copy of Form 16 (last 2 years). IT Returns for the last 2 years.
  • Bank account statement (6 months)

Benefits of Education Loan Without Collateral

Collateral-free education loans offer students the following benefits:

  1. Greater Accessibility to Education: Collateral-free student loans make higher education more accessible to all students. This is particularly true for those with promising academic records but little in the way of assets.
  2. No Risks to Assets: Since these loans don't need collateral, families and students don't have to worry about losing assets in the event of financial trouble or an inability to repay the loan.
  3. Promotes High Academic Achievement: Students are encouraged to maintain good marks and performance as they are frequently eligible for an unsecured education loan depending on their academic success.
  4. Streamlined the Loan Approval Procedure: Compared to secured loans, which need security, the lack of collateral expedites the loan approval procedure and makes cash available more quickly and effectively.
  5. Flexible Terms for Repayment: A lot of lenders provide low interest rates and grace periods during the study phase, which help students manage payments when they graduate and begin working.

How to Get an Education Loan for Abroad Studies without Collateral

Many students want to pursue their higher education overseas, but sometimes financial obstacles might seem challenging. This dream, nevertheless, may come true now that collateral-free education loans are available.

Without the burden of collateral requirements, ambitious students may open doors to renowned foreign colleges. They can start a life-changing academic adventure by following the few crucial steps outlined below and fulfilling the qualifying standards:

  1. Meet the Eligibility Criteria: Lenders usually consider a few important criteria in order to approve an education loan for overseas study without collateral. Keeping up a stellar academic record shows that you are dedicated to the program.
  2. Gather Required Documents: Put together all the required documents necessary for the application process. This consists of an acceptance letter from the foreign institution, a comprehensive pricing schedule including living and tuition, and pertinent academic records, among others.
  3. Compare Lenders and Terms: Compare processing costs, interest rates, payback terms, and any other features or advantages they provide, then choose the lender.
  4. Submit Your Application: Once you've chosen your lender, finish the loan application by sending in all the documents and information needed. Once submitted, wait for the education loan approval. Following this process, the amount of student loan approved will be credited to your account.

Get a Non-Collateral Education Loan for Abroad with Propelld

For students hoping to study abroad, getting a non-collateral school loan has become a more and more attractive choice. Students who are familiar with the complexities of these loans, may navigate the qualifying requirements and carefully assess the offers of different lenders. The student loan application process, however, can become complex and challenging because of all the steps and documentation.

Propelld is not only committed to making the process seamless but also successful. Here is how you can get an abroad education loan without collateral through Propelld:

  1. Verify Your Eligibility: A Propelld education loan advisor will contact you to help you understand all there is to know about student loans without collateral. The counselor will also provide you with a comprehensive document checklist.
  2. Register with Propelld: After registering, sign in to your Propelld account to apply for a non collateral education loan.
  3. Upload Your Documents: Compile all the paperwork that the Propelld counselor advises, then digitally upload it to the safe portal.
  4. Await Approval: The counselor will take care of the rest of the procedure and help you along the way. The counselor bargains for a better student loan amount and duration after verification.
  5. Loan Approval & Disbursement: After your documents are verified, you will get an agreement and a letter approving your loan. The approved student loan amount then will be credited to your provided account.

Banks That Give Education Loans without Collateral for Abroad

Raghuvamshi Kanukruthi
June 6, 2024
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Shivam Bhardwaj
March 15th 2022

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Pursuing higher education overseas has become a sought-after ambition for many individuals. It provides an opportunity to broaden their skills, acquire global exposure, and improve their employment chances. However, paying for an overseas education often appears expensive, leaving students and their families struggling to find funding.

Education loan proves to be the most useful solution in these situations. However, not every applicant necessarily has collateral to offer. If you are wondering if you can get a non-collateral education loan for abroad study, the answer is yes.

An education loan without collateral provides an acceptable means to get into renowned colleges all around the globe. These loans remove the requirement for collateral, making them an appealing choice for people who do not have significant assets to offer as security. Discover the eligibility criteria and know more about which banks in India offer education loans without collateral for abroad studies.

What is a Non Collateral Education Loan for Abroad?

Abroad education loans without collateral are a type of student loan given to students for their higher education costs overseas that doesn't require any security or guarantors. These are unsecured loans that do not require collateral or security that are mandatory in secured student loans. Instead, lenders assess whether applicants are creditworthy candidates with high potential for future income and high-quality courses.

The applicant's academic standing, acceptance into a reputable school, and prospective earnings are taken into consideration when making this loan offer. Since they are often unsecured student loans, borrowers are not required to pledge assets like real estate or stock.

Compared to secured loans, interest rates could be higher, and the loan amount might change depending on the borrower's circumstances and the lender's policy.

What are the Differences Between Collateral and Non Collateral Education Loans?

There are a few fundamental differences between education loans that are offered with or without collateral. These differences are as follows:

Loan Parameters Education Loan with Collateral Education Loan without Collateral
Collateral Requirement Requires a property or fixed deposit as collateral Does not require collateral (requires a financial co-applicant)
Loan Amount Higher (depends on the value of the collateral) Lower compared to loans with collateral
Interest Rates Lower interest rates due to security pledged Higher interest rates due to absence of security
Eligibility Criteria Flexible as collateral serves as security Stringent because the lender relies on the borrower's creditworthiness
Loan Processing Time More due to documentation and property valuation Less due to a flexible requirement

Comparison of Different Lenders Providing Education Loan without Collateral

When it comes to getting an education loan without collateral for studies abroad, students have many options. The types of lenders that offer abroad education loan without collateral are as follows:

Lender Type Loan Amount Interest Rates Processing Fees Repayment Terms
Public Banks Usually up to ₹20 lakh for domestic education and ₹1.5 crore for foreign education. Generally lower, ranging from 6.8% to 10% Minimal or no processing fees Flexible repayment tenures, often up to 10-15 years
Private Banks Loan amounts for domestic education might reach ₹50 lakh and for overseas education, ₹1 crore. Slightly higher compared to public banks, ranging from 9% to 13% May charge processing fees ranging from 0.5% to 2% of the loan amount Repayment tenures usually between 5 to 15 years

Which Banks in India Give Education Loans without Collateral for Abroad Studies?

Here is the answer to your question about which bank gives education loan without collateral for abroad in India:

Lenders/Banks Loan Amount Interest Rate
SBI Up to ₹7.5 Lakhs 10.65% - 11.50%
UBI Up to ₹40 Lakhs 9.80% - 11.30%
Axis Bank Up to ₹50 Lakhs 11.00% - 11.50%
ICICI Bank Up to ₹50 Lakhs 10.85% - 12.50%
IDFC FIRST Bank Up to ₹50 Lakhs 11.50% - 13.25%
HDFC Credila Up to ₹65 Lakhs 11.25% - 13.00%
Avanse Up to ₹75 Lakhs 12.50% - 13.50%
Auxilo Up to ₹65 Lakhs 11.25% - 14.00%
Incred Up to ₹60 Lakhs 12.00% - 14.00%

Lenders that Give Abroad Education Loan without Collateral and Co-applicant

By giving education loans without collateral in India, many banks and lenders ensure students have seamless access to student loans. These student loans then help them not only fund their education but their dreams as well. These lenders, however, often make it mandatory to have a co-applicant.

Among all these, Propelld stands as one of the most reliable solutions to apply for the education loan without collateral and co-applicant for study abroad.

If you are wondering, can I get an education loan without a guarantor in India? The answer is yes. Here is a list of the Indian lenders that offer education loans without collateral and co-applicants:

Lender Loan Amount Interest Rate
MPOWER Financing Up to $100,000 12.99% - Graduate Programs
13.99% - Undergraduate Programs
Prodigy Finance Up to $100,000 12.00% - 14.00%
Propelld Up to $100,000 12.00% - 14.00%

Eligibility Criteria for Abroad Education Loan without Collateral

Non-collateral education loan for abroad studies makes it easy for students to get their education without worries. It also makes it simpler for students to get an education loan without collateral. However, to avail of these education loans, students and applicants must meet a certain set of criteria. You need to fulfill these specific eligibility criteria:

  1. Indian Citizen: A student who is applying for an abroad education loan without collateral must be an Indian citizen.
  2. Academic Profile: Collateral-free education loans are often approved based on the academic profile of the students. This necessitates students having a strong academic profile.
  3. Co-applicant Finances: As these loans don't require collateral, they demand having a co-applicant with stable finances.
  4. Selected Countries and Universities: These education loans are often granted to students studying in renowned universities accepted by the banks or lenders.
  5. Test Scores: Applicants applying for education loans must score good marks on entrance tests like GMAT, GRE, TOEFL, and IELTS.

Documents for Abroad Education Loan without Collateral

Once you confirm your eligibility, you must gather a certain set of documents to apply for the education loan for abroad studies without collateral.

1. Loan Application Form

You must first get the application form for an education loan without collateral from your chosen lender or bank. You must carefully fill out the student loan application form.

2. Identity Proof

Now, you must submit the following documents for identity verification:

  1. PAN Card
  2. Passport
  3. Voter ID card
  4. Aadhar

3. Address Proof

You must also submit these documents that help lenders verify your address:

  1. Passport
  2. Telephone bill
  3. Electricity bill
  4. Water bill

4. Academic and Banking

Besides all these, here are a few banking and academic documents that you must submit:

  1. 10th
  2. 12th
  3. Undergraduate mark sheet
  4. Test scores of entrance tests like TOEFL, GRE, IELTS, etc.
  5. Proof of admission
  6. Statement of expenses
  7. Passport-size photographs 
  8. Loan account statement of one year (if any)

5. Co-applicant Documents

You must supply these documents of the co-applicant when applying for a study abroad loan without collateral:

  • Identity proof 
  • Address proof 
  • Income proof

6. Self-employed Co-applicants

If the co-applicant is self-employed, you must supply these documents:

  1. Business address proof 
  2. Last 2 years, IT returns 
  3. TDS Certificate 
  4. Certificate of Qualification 
  5. Bank account statement (last 6 months)

7. Salaried Co-applicants

If the co-applicant is salaried, you must supply these documents:

  • Salary slips (last 3 months)
  • Copy of Form 16 (last 2 years). IT Returns for the last 2 years.
  • Bank account statement (6 months)

Benefits of Education Loan Without Collateral

Collateral-free education loans offer students the following benefits:

  1. Greater Accessibility to Education: Collateral-free student loans make higher education more accessible to all students. This is particularly true for those with promising academic records but little in the way of assets.
  2. No Risks to Assets: Since these loans don't need collateral, families and students don't have to worry about losing assets in the event of financial trouble or an inability to repay the loan.
  3. Promotes High Academic Achievement: Students are encouraged to maintain good marks and performance as they are frequently eligible for an unsecured education loan depending on their academic success.
  4. Streamlined the Loan Approval Procedure: Compared to secured loans, which need security, the lack of collateral expedites the loan approval procedure and makes cash available more quickly and effectively.
  5. Flexible Terms for Repayment: A lot of lenders provide low interest rates and grace periods during the study phase, which help students manage payments when they graduate and begin working.

How to Get an Education Loan for Abroad Studies without Collateral

Many students want to pursue their higher education overseas, but sometimes financial obstacles might seem challenging. This dream, nevertheless, may come true now that collateral-free education loans are available.

Without the burden of collateral requirements, ambitious students may open doors to renowned foreign colleges. They can start a life-changing academic adventure by following the few crucial steps outlined below and fulfilling the qualifying standards:

  1. Meet the Eligibility Criteria: Lenders usually consider a few important criteria in order to approve an education loan for overseas study without collateral. Keeping up a stellar academic record shows that you are dedicated to the program.
  2. Gather Required Documents: Put together all the required documents necessary for the application process. This consists of an acceptance letter from the foreign institution, a comprehensive pricing schedule including living and tuition, and pertinent academic records, among others.
  3. Compare Lenders and Terms: Compare processing costs, interest rates, payback terms, and any other features or advantages they provide, then choose the lender.
  4. Submit Your Application: Once you've chosen your lender, finish the loan application by sending in all the documents and information needed. Once submitted, wait for the education loan approval. Following this process, the amount of student loan approved will be credited to your account.

Get a Non-Collateral Education Loan for Abroad with Propelld

For students hoping to study abroad, getting a non-collateral school loan has become a more and more attractive choice. Students who are familiar with the complexities of these loans, may navigate the qualifying requirements and carefully assess the offers of different lenders. The student loan application process, however, can become complex and challenging because of all the steps and documentation.

Propelld is not only committed to making the process seamless but also successful. Here is how you can get an abroad education loan without collateral through Propelld:

  1. Verify Your Eligibility: A Propelld education loan advisor will contact you to help you understand all there is to know about student loans without collateral. The counselor will also provide you with a comprehensive document checklist.
  2. Register with Propelld: After registering, sign in to your Propelld account to apply for a non collateral education loan.
  3. Upload Your Documents: Compile all the paperwork that the Propelld counselor advises, then digitally upload it to the safe portal.
  4. Await Approval: The counselor will take care of the rest of the procedure and help you along the way. The counselor bargains for a better student loan amount and duration after verification.
  5. Loan Approval & Disbursement: After your documents are verified, you will get an agreement and a letter approving your loan. The approved student loan amount then will be credited to your provided account.

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FAQs About How to Get Education Loan for Abroad Studies without Collateral

Can I get an education loan to study abroad without collateral?

Yes, students and aspirants can apply for an education loan in India to study abroad without collateral. Several banks offer student loans without collateral or security.

Which are the best banks for non-collateral education loans?

HDFC, ICICI, UBI, and SBI are among the best banks in India that offer non collateral education loans.

How to get education loan for abroad studies without collateral?

These types of loans have a certain set of eligibility criteria that students must adhere to to avail of an education loan.

Which bank gives education loan without collateral for abroad?

The top banks/lenders in India that give education loans without collateral for abroad are:

  1. SBI
  2. UBI
  3. Axis Bank
  4. ICICI Bank
  5. IDFC FIRST Bank

How much education loan can I get without collateral?

The loan amount for education loans without collateral varies based on numerous factors, including the university, program, and country. Call our education loan counselor to know how much education loan you can get without collateral.

Which bank is best for education loans abroad without collateral?

Leading banks providing competitive collateral-free education loans for studying overseas include SBI, HDFC Bank, and ICICI Bank. The ideal bank relies on your individual needs and qualifications.

Which bank provides 100% education loans?

The Indian bank that offers 100% education loans is called Axis Bank. Starting at INR 50,000, Axis Bank provides student loans without a maximum amount that cover up to 100% of the whole cost of education, including course fees and other associated expenditures.

Is it difficult to get an education loan without collateral?

If you have a solid statement of purpose, a co-applicant with a steady salary, a decent academic record, and access to a respectable institution, obtaining a collateral-free school loan shouldn't be too tough.

How much loan can I get from HDFC Credila without collateral?

Subject to your course, university, future income possibilities, and general eligibility evaluation, HDFC Credila provides collateral-free education loans up to Rs. 20 lakh for studying abroad.

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