How to Get an Education Loan without Collateral: A Quick Guide to All Your Questions

Securing funds for higher education can be challenging, especially for students lacking assets to pledge. If you are wondering how to get an education loan without collateral, many Indian banks and NBFCs offer unsecured loans of INR 7.5 lakhs or above. Some private lenders even provide up to INR 50 lakhs for overseas education based on academic merit and co-applicant income.

These loans cover tuition, living expenses, and other related costs, making them a preferred option. Interest rates for collateral-free education loans generally range from 8% to 15%. Let's explore the eligibility, documents, and best lenders for non-collateral education loans.

What is an Education Loan without Collateral?

An education loan without collateral is a type of loan where students are not required to pledge any security or assets to get funding for their education. These loans are generally based on the applicant’s academic profile, the reputation of the institute, and the co-applicant’s income. They are ideal for students who have strong academic merit but lack property or financial assets.

• Loan Amount: You can get up to INR 50 lakhs from private lenders for studying abroad.
• No Asset Required: No need to pledge property, fixed deposits, or third-party guarantees to secure the loan.
• Moratorium Period: No EMI obligations while the student is still pursuing the course.
• Interest Rates: Interest generally ranges from 9% to 13%, depending on the lender, institute, and applicant profile.
• Quick Processing: Many lenders provide pre-admission sanction letters and faster approval.

Benefits of Education Loans without Collateral

Education loans without collateral have become a go-to option for students planning to study in top universities without pledging assets. They offer financial flexibility and ease the burden of funding higher education.

• No Asset Requirement: You don't need to provide property or savings as security for loan approval.
• Easy Access to Funds: Enables students from various financial backgrounds to secure education financing.
• Interest Rates: Comes with competitive interest rates, making repayment more manageable over time.
• Flexible Repayment Options: Repayment plans are often adjusted to suit your future income and capacity.
• Grace Time After Study: Offers a no-EMI period during and shortly after the course, giving breathing room before repayment begins.
• Co-applicant Support: Involving a co-borrower can improve your chances of approval and higher loan amounts.
• Faster Loan Sanctions: These loans usually involve quicker processing and disbursal timelines.

Also Read: Best Education Loan for Abroad Studies

Which Bank Gives an 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%.

List of Banks Offering Education Loan without Collateral

Several public and private sector banks in India provide education loans without collateral for domestic or abroad studies. These loans are usually offered based on academic merit, course type, and institution ranking. Here is a list of banks and their loan details.

Quick Read: Government Education Loan For Studying Abroad

Eligibility Criteria for Abroad Education Loan Without Collateral

To get a student loan without collateral for studying abroad, students must meet specific academic and financial criteria. Lenders focus on academic performance, course relevance, and the financial profile of the co-applicant. Here is a breakdown of the eligibility requirements.

• Strong Academic Background: A consistent academic record with at least 60% marks in 10th, 12th, and undergraduate studies is generally expected.
• Approved Courses and Institutions: Loans are generally sanctioned for master's, PhD, or career-focused programs like STEM and management at recognized foreign universities.
• Reliable Co-applicant: A co-applicant is mandatory, often a parent or guardian, with a strong CIBIL score (700+) and a stable income source.
• Minimum Income Requirement: The co-applicant must have an annual income of around INR 4 lakhs or more to ensure repayment ability.
• Standardized Test Scores: Valid and competitive scores in GRE, IELTS, or TOEFL are often required for loan approval by many lenders.
• Prestigious University Advantage: Admission into top-ranked or globally reputed universities may increase the chances of faster and easier loan approval.

Explore: 9 Financial Documents Required to Study Abroad in 2025

Document Requirements for Non-Collateral Education Loan for Abroad

Applying for an education loan without collateral for studying abroad requires both the student and co-applicant to submit specific documents. These documents help lenders assess the applicant’s eligibility and financial background. Below is a category-wise list of essential documents needed during the application process.

For Students

• KYC Documents: Submit Aadhaar card, PAN card, or any valid government-issued photo ID.
• Course & Fee Details: Include documents showing course structure, tuition fees, and duration.
• Passport-Sized Photos: Provide two recent colour photographs of the student.
• Academic Records: Submit all mark sheets, certificates, and transcripts from previous education.
• University Acceptance Letter: Offer letter or admission confirmation from the foreign university.
• Fee Structure: Official breakdown of tuition and other academic-related charges.

For Co-Applicant (If Salaried)

• Income Proof: Include Form 16, recent salary slips, or income tax return documents.
• Bank Statements: Provide bank account statements from the last 8 months.
• Relationship Proof: Submit any document that confirms the relationship between the student and co-applicant.

For Co-Applicant (If Self-Employed)

• Business Registration Proof: Documents like GST registration or a business license are needed.
• Company Documents: Include Partnership Deed, MOA, or AOA, depending on the business type.
• Company Registration Certificate: Proof of company registration and legal existence.
• Financial Statements: Provide income and expense records of the business from the past six months.

Check Out: 10 Things You Must Consider While Choosing the Right University to Study Abroad

How to Get an Education Loan Without Collateral?

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

Useful Links for Further Reading:

• Best Government Funded Study Abroad Scholarships for Indian Students in 2025
• Best Universities for Indian Students Abroad (2025)
• 8 Best Benefits of Studying Abroad for Indian Students in 2025