Education Loan Without Collateral for Abroad Studies

Thinking of getting an education loan, however, what you hear from every lender is the “collateral”. This hassle brings you to the Google search, ‘Can we get study loan without collateral?’. Yes, you can get an education loan for abroad studies without collateral.

However, these loans come with terms and conditions, and you should be aware of them. The first mandatory requirement of these non-collateral education loan for abroad requires a financial co-applicant. Yet, there are international lenders such as MPOWER Financing and Prodigy Finance that can provide education loans even without a financial co-applicant.

All this information was just to help you know the basic related requirement, but the details about the public banks, private banks, and NBFCs are explained in the information below. Read to know and understand about the no-collateral education loans. 

What is an Education Loan Without Collateral?

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.

Education Loan With Collateral Vs Without Collateral

As the headline states, one education loan requires collateral, however, the other doesn’t require collateral. But, this is not the only thing that makes them different loan products. Below is the table that elaborates on the difference in detail:

To know more in detail, read:

• 
  Collateral Vs No-collateral Loan
• 
  Bonafide Certificate for Education Loan

Lenders Offering Abroad Education Loan Without Collateral

‘Can we get student loan without security?’ Yes, and this is possible because of the lenders mentioned below. All these provide an education loan for abroad studies without collateral but a financial co-applicant is required.

Lenders Offering Abroad Education Loan Without Collateral And Co-Applicant

‘Can I get education loan without guarantor?’ The answer to this question is “No” if we are talking about the Indian lenders. But, if you welcome an international lender, then the answer is “Yes”. They provide the education loan for abroad studies without collateral and co-applicant / guarantor.

Compare Top Education Loan Offers 2025

Even though all these lenders provide unsecured education loans for the abroad education. Still, they have their loan features, which make them different from one another. We have tried to include every single difference in the table below:

Eligibility Criteria for Abroad Education Loan Without Collateral

To arrange the funds from the lender, one needs to fulfil some eligibility criteria. The general eligibility criteria for the non-collateral education loan abroad are mentioned below. However, the eligibility for foreign education loan without collateral might become specific based on the lender you withdraw the loan from. 

Academic Profile:

The lender isn’t demanding security on your study loan without collateral, or your academic background plays a crucial role. 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 performance.

Co-applicant Finances:

The co-applicant must have a good CIBIL score and meet the prescribed requirements to get study loan without collateral. 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.

Course & University:

Almost all the lenders that provide you with non-collateral education loan for abroad have a list of universities/colleges and courses. All you have to ensure is that your target country, course, and university/college fall on their lists.

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.

Documents Required for Abroad Education Loan Without Collateral

Below is a generalized list of documents required for getting an education loan to study abroad without collateral. All these documents should be prepared in advance to ensure the swift approval of a study abroad loan without collateral.

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  Loan application form
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  Identity proof - PAN Card, Passport, Voter ID card.
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  Address proof - a recent copy of the telephone bill, electricity bill, or water bill.
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  Past academic record - 10th, 12th, undergraduate mark sheet, test scores of entrance tests like GRE, TOEFL, IELTS, etc. 
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  Proof of admission - you can submit a conditional offer of admission as well.
• 
  Statement of expenses - the entire cost of education.
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  Passport-size photographs
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  Loan account statement for one year, if there are any previous loans taken from any lender.

Documents Required from Co-applicant:

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  Identity proof 
• 
  Address proof 
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  Income proof - the documents for the same will differ depending on the type of employment, such as self-employed or salaried.

Self-employed Co-applicants:

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  Business address proof
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  Last 2 years' IT returns
• 
  TDS Certificate 
• 
  Certificate of Qualification 
• 
  Bank account statement of the last 6 months

Salaried Co-applicants:

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

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