Education Loan for Abroad Studies without Collateral

    Updated on: 07 Nov 2023 11 min read

    How to Get an Abroad Education Loan Without Collateral

    Are you a student who dreams to study abroad, but does not have collateral to pledge for a secured education loan? 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 education loans 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. 

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    FAQ's

    Which banks give abroad education loan without collateral?

    Several banks provide education loans without collateral for studying abroad. Some notable examples include:

    1. State Bank of India (SBI)
    2. Union Bank of India (UBI)
    3. Axis Bank
    4. ICICI Bank
    5. HDFC Credila

    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. 

    Can I get a US education loan without collateral?

    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 -

    • Private Banks - up to 50 Lakhs INR
    • NBFCs - up to 70 Lakhs INR
    • International Lenders - up to USD 100,000

    How to get an education loan for abroad studies without collateral and a co-applicant?

    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. 

    How much education loan can I get without collateral?

    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.

    Is there a processing fee associated with an education loan without collateral?

    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. 

    Reasons why your education loan without collateral is being rejected?

    A few reasons that lead to the rejection of your application to get an education loan without collateral are - 

    • Lenders majorly prefer to fund postgraduate programs. In case you apply for an undergraduate program and the targetted university is not on the approved list, then it can be rejected. 
    • Improper FOIR i.e. Fixed Obligation to Income Ratio can get your application for an education loan without collateral rejected. Usually, lenders require approx 35,000 - 40,000 INR as minimum income without obligations.



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Written by Rohit Gidwani

Meet Rohit, an expert in the field of study abroad and Ed-tech with many years of professional experience in content creation and creative writing. Being a BBA graduate has helped him to pursue his professional duties strategically and with creativity.


Specializes in:
Loan without collateral

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Reviewed by Aman Jain

Aman Jain graduated from IIT Kanpur, and currently functions as the CMO at GyanDhan. He is deeply passionate about creating equality in higher education and has directly interacted with 2 Lakh students in his 8-year-long journey.


Specializes in:
Education loan , Study Abroad Admissions


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