- Collateral vs without collateral loans
- Lending option for loan without collateral loans
- Lending options for without collateral and co-applicant loans
- Eligibility criteria
- Required documents
- How to apply via GyanDhan?
- How can GyanDhan help?
- Frequently asked questions
- Public sector banks - SBI and UBI.
- Private sector banks - Axis Bank, ICICI Bank, and IDFC FIRST Bank.
- NBFCs - HDFC Credilla, Avanse, Auxilo, and Incred.
- Academic profile of the client
- Co-applicant finances
- Chosen country, university, and course
- Test scores
- Academic profile of client - Since the bank does not demand collateral as security, your academic excellence is one of the primary criteria for an unsecured education loan. The reason behind this is that apart from your co-applicant’s income your estimated earning potential is checked which can differ based on your academic performance in the future. Your academic performance for the future can only be forecasted through your past performances.
- Co-applicant finances - The co-applicant must have a very good CIBIL score and meet the prescribed requirements. They should also meet the minimum income level as well which can be 30,000 INR - 40,000 INR (without obligations) depending on the lender.
- Chosen country, university, and course - Almost all the lender that is providing you with non-collateral education loan for abroad has developed a list of universities/colleges and courses. All you have to ensure that your target country, course, and university/college fall in on their lists.
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Test scores - The scores you obtained in the English proficiency tests and other standardized tests, like IELTS, TOEFL, GRE, SAT, etc., shall be above average or meet the mark prescribed by your lender.
- Loan application form
- Identity proof - PAN Card, Passport, Voter ID card.
- Address proof - a recent copy of the telephone bill, electricity bill, or water bill.
- Passport
- Past academic record - 10th, 12th, undergraduate mark sheet, test scores of entrance tests like GRE, TOEFL, IELTS, etc.
- Proof of admission - you can submit a conditional offer of admission as well.
- Statement of expenses - the entire cost of education.
- Passport-size photographs
- Loan account statement of one year, if there are any previous loans taken from any lender.
- Identity proof
- Address proof
- Income proof - the documents for the same will differ depending on the type of employment, such as self-employed or salaried.
- Business address proof
- Last 2 years IT returns
- TDS Certificate
- Certificate of Qualification
- Bank account statement of the last 6 months
- Salary slips of last 3 months
- Copy of Form 16 for the last 2 years or copy of IT Returns for the last 2 years.
- Bank account statement for the last 6 months.
- Check Eligibility: Visit GyanDhan's website or use the loan eligibility form to determine if you qualify for a study abroad loan without collateral. Criteria include academic qualifications, admission to a recognized foreign institution, and creditworthiness.
- Apply and Consult: An Education Loan Counselor (ELC) from GyanDhan will guide you through the process, providing a tailored checklist. Submit your application, and the system will match you with two suitable lenders.
- Submit and Verify Documents: Gather and submit required documents, including academic and income records. Lenders verify your application, reviewing admission details, financials, and more.
- Loan Approval: Upon lender approval, you receive a notification with the approved amount. If satisfied, you can finalize by signing the agreement, leading to the disbursal of the required funds.
- Multiple options: We have partnered with several lenders in the market. Thus, we would be able to provide you with multiple options in one place when it comes to lending options.
- Personalized suggestions: We evaluate your details and suggest the lender that will best serve your purpose and needs. Our Education Loan Counselors will discuss the loan options with you and help you apply for the loan.
- Quick resolution to problems: If any problem arises, it is quickly resolved by contacting the concerned official so that your loan application is processed quickly and smoothly.
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Free of cost: All these services from GyanDhan in relation to your education loan are provided free of cost to you.
- Your first priority should be public banks as they can provide you with very good interest rates. However, the loan amount that you can get from them is low for unsecured education loans.
- Private banks should be your next priority as the loan amount provided by them can go upto 50 Lakhs INR and they will be able to provide you with reasonable interest rates.
- In case you need a loan above 50 Lakhs INR then you can go for NBFCs, their interest rate may be higher than private banks but the loan amount can go up to 70 Lakhs INR.
- International lenders will be a great last option especially when you do not have a proper co-applicant. They can provide you with loans upto 100,000 USD but the interest rate will be higher as compared to all the other lenders.
- State Bank of India (SBI)
- Union Bank of India (UBI)
- Axis Bank
- ICICI Bank
- HDFC Credila
- Private Banks - up to 50 Lakhs INR
- NBFCs - up to 70 Lakhs INR
- International Lenders - up to USD 100,000
- 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.
Updated on: 07 Nov 2023
11 min read
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. 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. Table of Contents 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 The different lenders that can provide you with non-collateral education loan for abroad are listed below. Now that you know all the lenders let’s have a look at their respective education loan amounts and interest rate. 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% The table below mentions international lenders that can provide you education loan for abroad studies without collateral and co-applicant. Lender Name Loan Amount Interest Rate Up to 100,000 USD 12.99% - Graduate Programs Up to 100,000 USD 12.00% - 14.00% Looking For An Abroad Education Loan? 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 abroad education loan without collateral in detail Given below is a generalized list of documents required for a non-collateral education loan for abroad. 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 - The process of starting a loan application without collateral is quite simple. All you need to do is follow the below-mentioned steps. 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 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 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 -
Check Your Education Loan Eligibility Apply Here
Differences in education loans: with collateral vs without Collateral
Lenders that provide abroad education loan without collateral
Lenders that provide abroad education loan without collateral and co-applicant
13.99 - Undergraduate Programs
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Eligibility for abroad education loan without collateral
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Documents required for education loan for abroad studies without collateral
How to apply for an abroad education loan without collateral via GyanDhan
How can GyanDhan help you get a study abroad loan without collateral?
Get the Funds you need to Study Abroad Check Your Loan Eligibility Now!
Which is the best lender for education loans to study abroad without collateral?
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.
FAQ's
Which banks give abroad education loan without collateral?
Can I get a US education loan without collateral?
How to get an education loan for abroad studies without collateral and a co-applicant?
How much education loan can I get without collateral?
Is there a processing fee associated with an education loan without collateral?
Reasons why your education loan without collateral is being rejected?
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
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
GyanDhan is India's first education financing marketplace.
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