Which Bank Gives Education Loan Without Collateral for Abroad?: Are you willing to study abroad but lack of security for an education loan? If yes, here you can check the list of banks offering education loan without collateral for abroad study. These banks offer better options with varying loan amounts and conditions to help the students financially.
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What is Education Loan Without Collateral?
Education loans are of two types. They are secured loan and unsecured loan. Secured loan is with collateral and unsecured loan is without collateral.
A non-collateral education loan is taken without giving any collateral as a gaurantee to the lender or bank. Students can take the loan amount without any security like property or anything. They can take up to 50 lakhs for their education.
Eligibility Conditions for an Abroad Education Loan without Collateral
There are certain eligibility requirements that you should meet to ensure that you can get an unsecured education loan to study abroad. Some of the common parameters to consider under eligibility are along the lines:
- Academic Profile of the Student: Banks does not see collateral as the primary factor to approve loan, your academic performance plays a key role. Your future academic performace is forecasted only through the past performances.
- Selected Country, University and Course: All banks giving non-collateral education loans for abroad countries with a list of university and courses. All you need to check is whether your country, university and course are available in the list or not.
- Co-applicant Finances: The co-applicant’s must have high CIBIL score and meet the prescribed requirements. They should also have a minimum income of INR 30,000 to INR 40,000 based on the lender.
- Test Scores: The differest test scores like IELTS, GRE, GMAT, TOEFL, SAT, etc and the average of all of them are considered.
Documents Needed for an Unsecured Education Loan
Non-collateral education loan can cover your travel expenses, tuition fees, living expenses, study materials, and so on. The lenders provide easy study loan without collateral only if you have the following documents.
- KYC documents
- 2 passport size photographs of the applicant and co-applicant
- Past 6 months bank statements
- Copy of the admission letter from the university
- Mark sheets of 10, 12, degree courses, and entrance exams.
- Income proof of the guarantor or co-applicant.
Which Bank Gives Education Loan Without Collateral for Abroad?
The lenders that provides education loan without collateral are of two types. They are public banks and private lenders. THe different public sector banks that provide unsecured education loan are SBI, UBI. The list of private sector banks offer education loan without collateral are Axis Bank, ICICI Bank, and IDFC First Bank. And other NBFCS are HDFC Credila, Auxilo, Avanse, and Incred.
Till now you know the list of banks that provide abroad education loan with non-collateral. Below we have tabulated the lender name, possible loan amount and rate of interest for abroad studies without collateral and with co-applicant.
| Lender Name | Loan Amount | Interest Rate |
| SBI (State Bank of India) | Up to 7.5 Lakhs INR | 10.65% – 11.50% |
| UBI (Union Bank of India) | 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% |
| HDC Credila | Up to 65 Lakhs INR | 11.25% – 13.00% |
| Avanse | Up to 75 Lakhs INR | 12.50% – 13.50% |
| Auxilo | Up to 65 Lakhs INR | 11.25% – 14.00% |
| Incred | Up to 60 Lakhs INR | 12.00% – 14.00% |
How To Apply for Abroad Education Loan Without Collateral?
The following is the detailed application process to get education loan for abroad study without collateral.
- Firstly, students have to check the eligibility whether they meet the conditions or not.
- Know the list of banks that provide abroad education loan without having collateral and decide which bank you are choosing.
- Start the loan process by giving the loan application.
- Also, submit the required documents to the bank and verify them.
- Once everything is done, the bank will approve loan to you.
FAQs on Lenders That Provide Education Loan without Collateral
- Which banks offer non collateral education loan?
The list of banks offering non-collateral education loan are SBI, UBI, Axis Bank, ICICI Bank, IDFC First Bank, HDFC Credila, Avanse, Incred, and Auxilo.
- How much money can I get education loan without collateral?
You can get up to 7.5 lakhs education loan amount without collateral.
- Can I get 20 lakhs education loan without collateral to study abroad?
Yes, you can get 20 lakhs education loan without collateral to study abroad.
- Is it difficult to get education loan without collateral?
No, it is not difficult to get education loan without collateral. But the interest rates are higher for non-collateral loans.
Conclusion
Hoping that we have given the sufficient information for Which Bank Gives Education Loan Without Collateral for Abroad? Many banks provides abroad eduction loans without collateral but have higher interest rates. Know more related articles like How to Get Education Loan from Government, Which Bank has Lowest Interest Rate on Education Loan , and so on at our site.
