How to Secure an Education Loan without Collateral: A Quick Guide to All Your Questions
Table of Contents[Show]
- Types of Student Education Loans
- Benefits of Non-Collateral Education Loan for Abroad
- Which Bank Gives Education Loan without Collateral for Abroad?
- Eligibility Criteria for Abroad Education Loan Without Collateral
- Document Requirements for Non-Collateral Education Loan for Abroad
- How to Get an Education Loan Without Collateral: Application Process
Ever dreamt of studying abroad, but the hassle of collateral is holding you back? What if we tell you there's a way to finance your global education without the burden of pledging assets? In this blog, we're diving deep into the world of education loans without collateral, answering the burning questions every student has on their mind.
Wondering how to make your dream degree a reality without emptying your pockets or putting assets on the line? Join us on this journey as we unravel the secrets to securing a study loan without collateral. Ready to break free and explore the possibilities? Let's dive in!
Types of Student Education Loans
Explore the diverse options available for student education loans. From collateral-based loans that require valuable assets as security to non-collateral loans that prioritize creditworthiness and academic performance
1. Collateral Education Loan
Collaterals are like a promise you make to the bank when you take a loan. It's like saying, "If I can't pay back the money, you can have my valuable stuff." Valuable stuff could be things like your home, car, or other big things.
Collateral education loans are often considered a secure form of lending, providing assurance to the lender but requiring borrowers to put valuable belongings at risk. Thus, it is also called the Secure Education Loan
2. Non-Collateral Education Loan
A non-collateral education loan is like getting money for school without having to promise any special things, like your house or car, to the bank. It's a loan where you don't need to give the bank any valuable stuff as a guarantee. They look at how trustworthy you are and if you can pay them back.
Non-collateral education loans are often based on factors such as the borrower's creditworthiness, academic performance, and potential, allowing more individuals to pursue their education without the burden of providing collateral. Thus, it is also called the UnSecure Education Loan.
Benefits of Non-Collateral Education Loan for Abroad
Banks often say no to students with not-so-great academic records or if they can't provide all the needed documents for a secured education loan. But fear not! Overseas education loans without collateral come to the rescue with some cool benefits
- Loan amounts ranging from 40 to 45 lakhs without the need for collateral
- Pre-Admission Loan for financial support before obtaining admission
- Pre-visa disbursal of the loan is applicable for all countries
- The moratorium period exempts students from paying EMIs; only small touch payments are required
- 100% coverage of education finance
- Availability of top-up loans for additional financial assistance
- Flexible repayment options with no prepayment penalties
- Swift and paperless application process
- Doorstep services are provided for added convenience
Which Bank Gives Education Loan without Collateral for Abroad?
When it comes to securing a collateral-free education loan for studying abroad, several banks stand out as reliable options. For a detailed overview of these banks and their offerings, refer to the accompanying pointers and tables below.
- Public lenders such as SBI provide loans without collateral, extending up to 7.5 Lakhs for study abroad purposes.
- Private banks like Axis Bank, ICICI Bank, and HDFC offer non-collateral loans with amounts reaching up to 40 lakhs. The repayment period spans 10-12 years, with an interest rate ranging from 10-12%.
- NBFCs such as Incred and Auxilo are additional lenders offering non-collateral study loans for abroad studies, ranging up to 40 lakhs, with interest rates varying from 10-18%.
ICICI Bank Education Loan without Collateral
HDFC Education Loan Without Collateral
Union Bank Education Loan Without Collateral
Axis Bank Education Loan Without Collateral
SBI Abroad Education Loan Without Collateral
Foreign Bank that Provides Education Loan without Collateral
Foreign lenders like Leap Finance and Prodigy Finance education loans without collateral to support applicants for overseas education. Let's take a look at the table to estimate the interest rates
Eligibility Criteria for Abroad Education Loan Without Collateral
To secure a non-collateral education loan for studying abroad, you need to meet specific eligibility criteria. While requirements may vary by lender, common parameters include
1. Academic Profile: Your past academic performance is crucial as the bank considers your potential future earnings. Since there's no collateral requirement, your academic excellence becomes a primary criterion.
2. Co-applicant Finances: The co-applicant, typically a family member, needs a good CIBIL score and must meet minimum income levels, often ranging from 30,000 to 40,000 INR without obligations, depending on the lender.
3. Chosen Country, University, and Course: Ensure that your desired country, course, and university align with the lender's approved list, as most lenders have specific institutions and programs they support.
4. Test Scores: Your performance in English proficiency and standardized tests (IELTS, TOEFL, GRE, SAT, etc.) should be above average or meet the lender's prescribed marks.
Document Requirements for Non-Collateral Education Loan for Abroad
Now, let's explore the essential documentation vital for securing an education loan for abroad studies without collateral, some specific documents are required, as listed below
Documents Required from Co-applicant for Study Abroad Loan without Collateral
In the application process for an education loan abroad without collateral, the financial co-applicant's income is pivotal. It serves as a crucial determinant for obtaining the loan, let’s take a look at the document requirements for the same
How to Get an Education Loan Without Collateral: Application Process
Explore the application process for an education loan without collateral, starting with the evaluation of necessary documents and concluding with the disbursement of funds into your account. Delve into the intermediary steps to understand in detail
- Step 1: Begin by assessing the necessary documents, shortlisting banks, and completing the application form.
- Step 2: Proceed with a credit check and verification process. Connect with lenders, submit scanned documents, log the case in the bank portal, and undergo a credit verification call. Additionally, an investigation of the workplace and residence will be conducted.
- Step 3: Move forward to the decision and sanction process, which involves receiving provisional approval and making the payment for processing fees.
- Step 4: Enter the loan agreement phase. Sign the agreement through courier or personal visit, obtain the sanction letter, and ensure the insurance of the loan for both the student and co-applicant.
- Step 5: Finally, receive the funds by facilitating the loan disbursement into your savings account.
Empowering Your Educational Dreams With GetGIS
In conclusion, navigating the complexities of securing an education loan without collateral requires a meticulous approach. From assessing the necessary documents to the final disbursement of funds, the journey is a testament to your commitment to education. Remember, your dreams are within reach, and with the right guidance, you can overcome financial hurdles.
At GetGIS for Study Abroad, we stand as your reliable partner in this journey. Our end-to-end assistance goes beyond loan guidance, extending to comprehensive support with Statement of Purpose (SOP) preparation and much more. Let us be your ally in turning aspirations into accomplishments. Book Your Free Consultation
Frequently Asked Questions
Can I apply for an education loan without a co-applicant?
How much education loan can I get without collateral?
Which are the best banks for education loans without collateral?
Is it possible to secure a 20 lakh loan without collateral?
Why Was My Application for an Education Loan Without Collateral Rejected?