Students who dreamed to study in foreign institutions with unsecured loans should check out this ultimate guide on How to Get Education Loan for Abroad Studies without Collateral . As it provides every single piece of information about the abroad education loan without collateral.
This article starts with an explanation of what is meant by a collateral loan, a brief about education loans without collateral, required documents, eligibility conditions, features & benefits, and the procedure on How to apply for an Education Loan for Abroad Studies without Collateral.
What is Collateral Loan?
study
loans
are
of
| Basis of difference | Education loan with collateral (Secured) | Education loan without collateral (Unsecured) |
| Eligibility Criteria | Relaxed as the collateral serves as security | The lender must be strict and base their decision on the borrower’s creditworthiness and the co-applicants financial stability. |
| Requirement of Collateral | Property or fixed deposit, as security for the loan | Collateral, is not necessary, but a financial co-applicant may be required |
| Interest Rates | May be low due to the security pledged | Interest rate is higher because of no security |
| Loan Amount | Generally higher depending on the value of the collateral | Lower than the collateral loan amount |
| Loan Processing Time | It takes more time because of lengthy documentation, property valuation, etc. | It takes less time because of relaxed requirements. |
two
types
- No holiday period is covered in these loans.
- Offers numerous courses and colleges in various countries
- The range of Interest rates is between 10.50% to 14%.
- Students can get this loan with the signature of a co-applicant.
such
as
Private banks: Axis Bank, IDFC first bank, and ICIC Bank
Public banks: UBI and SBI
NBFCs: HDFC Credila, Incred, Auxilo, and Avanse
secured
and
| Lender Name | Loan Amount | Interest Rate |
| SBI | Up to 7.5 Lakhs INR | 10.65% – 11.50% |
| UBI | Up to 40 Lakhs INR | 9.80% – 11.30% |
| Axis Bank | Up to 50 Lakhs INR | 11.00% – 11.50% |
| ICICI Bank | Up to 50 Lakhs INR | 10.85% – 12.50% |
| IDFC FIRST Bank | Up to 50 Lakhs INR | 11.50% – 13.25% |
| HDFC Credila | Up to 65 Lakhs INR | 11.25% – 13.00% |
| Incred | Up to 60 Lakhs INR | 12.00% – 14.00% |
| Auxilo | Up to 65 Lakhs INR | 11.25% – 14.00% |
| Avanse | Up to 75 Lakhs INR | 12.50% – 13.50% |
Note: Above IR and Loan amount numbers can be varied as per their rules and regulations every year or sometimes so refer to their website or discuss with their respective service providers before applying for the loan.
unsecured
loans
- Prodigy Finance is the lender’s name they offer the loan amount of Up to 100,000 USD for a 12.00% – 14.00% Interest Rate.
- MPOWER Financing is another lender that sanctions loan amounts of Up to 100,000 USD without collateral and co-applicant for the interest rate like 12.99% – Graduate Programs and 13.99% – Undergraduate Programs.
.
secured
- You can complete the whole process rapidly with less paperwork.
- No need to pay EMIs during the moratorium period
- No pre-payment penalty
- Flexible at repayment
- Benefit with a loan before admission
- Avail top-up loans
- Get Rs.40 lakh to Rs.50 lakh of loan amount under this unsecured type of loan.
means
a
- Students should score more than 300 in the GRE exam, to get an admission in USA country universities.
- If you want to study in other countries, then scoring above 6 or 6.5 bands in IELTS exam is must.
- Co-applicant financial income must have above the loan amount.
- After all debts and expenses, annual income must be more than 4 lakhs.
- Applied student parents need to own a resident house.
loan
- University offer letter mentioning tuition fees
- Academic documents
- Employment documents
- KYC documents of both applicant and co-applicant
- Address proof along with the electric bill
- Two Photographs
For salaried co-applicant, any of the income proofs should be provided:
- ITR
- Form 16
- Salary slip
- Salary account detail
For business owners, income proof should be provided and it can be anyone from the below:
- ITR
- Profit & loss account
- Balance sheet
- Business registration certificate
- Business current account
- Applicant’s saving account details
with
collateral
- Select the best overseas study online with no collateral and read all the loan terms and conditions.
- Study all the loan details like repayment tenure, moratorium period, interest rates, and other facilities of education loans provided by the Indian government.
- If you feel the chosen loan is suitable for your studies in abroad universities then communicate with the lender and proceed to apply for the study loan with no collateral.
- Fill out the application form online or offline by entering all necessary information.
- Scan all the mandatory documents which are mentioned above and upload all of them with the filled application form.
- Finally, submit the form of loan application to the lender and wait for the lender’s response.
and
- How much loan amount can I get an education loan without collateral?
unsecured
- Which bank is best for non-collateral loans?
SBI, Bank of Baroda, Axis Bank, ICICI Bank, HDFC, etc. are best for non-collateral loans for abroad studies. Check out our guide called Which Bank Gives Education Loan Without Collateral for Abroad ? for getting detailed knowledge on the same.
- Can a student apply for an education loan without collateral?
means
a
We believe that provided data on How to Get Education Loan for Abroad Studies without Collateral helped you so much while researching unsecured loans for abroad studies.
