Students who are looking education loan for abroad studies, but having no collateral, Do not worry. Overseas Education loan without collateral is a possible.
Most of the lenders who provide non-collateral education loan for abroad studies require a financial co-applicant. Some international lenders like MPOWER Financing and Prodigy Finance can provide education loans even without a financial co-applicant. Even some of the public banks, private banks, and NBFCs also offer study loan without collateral, with varying loan amounts.
What is an Education Loan Without Collateral?
A non-collateral education loan for abroad studies is basically a type of study loan for students for their higher education expenses without requiring any security or guarantor, based on the student’s academic record, admission to a valid and recognized institution, and also his/her future earning potential.
This is basically an unsecured education loan, in which borrowers do not need to pledge assets like property or shares. However,interest rates may be higher compared to secured loans, and even the loan amount may vary according to lender’s policy and the borrower’s or student’s profile.
Education Loan With Collateral:
• Require property or any fixed asset as security for loan.
• Loan amount is generally higher depending on the value of the collateral.
• Interest rates may be low due to security pledged.
• Eligibility Criteria is somewhat relaxed as the collateral serves as security.
• Loan Processing Time is more due to documentation, property valuation and more.
Education Loan Without Collateral:
• In this case does not require collateral, but may require a financial co-applicant.
• Loan amount may be as lower compared to loans with collateral.
• Interest rates in education loan without Collateral may be higher due to absence of security.
• Eligibility criteria is strict as the lender needs to depends on the borrower’s credit value and co-applicants financial stability.
• Loan Processing Time is less due to relaxed requirement.
Lenders Offering Abroad Education Loan Without Collateral
Public sector banks – SBI and UBI.
Private sector banks – Axis Bank, ICICI Bank, and IDFC FIRST Bank.
NBFCs – HDFC Credilla, Avanse, Auxilo, and Incred.
Lenders Offering Abroad Education Loan Without Collateral And Co-Applicant.
International lenders that can provide you with education loan for abroad studies without collateral and co-applicant / guarantor.
1:MPOWER Financing
Loan Amount:Up to 100,000 USD
Interest Rates: 12.74% USD
2:Prodigy Finance
Loan Amount:Up to 100,000 USD
Interest Rates: 12.00% – 14.00%
Eligibility for Abroad Education Loan without Collateral
There are certain criteria’s and requirements that student has to meet to ensure that you can get a non-collateral education loan for abroad.
- Academic profile of the student
- Co-applicant finances –Co-applicant should have good cibil score
- Country, university, and course – Student needs to ensure that the target country, course, and university/college should have in their lists
- Test Score –Should have above average score in the tests like like IELTS, TOEFL, GRE, SAT, etc.
Documents Required for Abroad Education Loan Without Collateral
- Loan application form
- Identity proof – PAN Card, Passport, Voter ID card.
- Address proof – a recent copy of the telephone bill, electricity bill, or water bill.
- Past academic record – 10th, 12th, undergraduate mark sheet, test scores of entrance tests like GRE, TOEFL, IELTS, etc.
- Proof of admission – Admission Letter or conditional offer of admission as well.
- Statement of expenses – Total cost of education.
- Passport-size photographs
- Loan account statement of one year, if there are any previous loans taken from any lender.
Documents required from the co-applicant for study abroad loan without collateral:
- Identity proof
- Address proof
- Income proof
Self-employed co-applicants:
- Business address proof
- Last 2 years IT returns
- TDS Certificate
- Certificate of Qualification
- Bank account statement of the last 6 months
Salaried co-applicants:
- Salary slips of last 3 months
- Copy of Form 16 for the last 2 years or copy of IT Returns for the last 2 years.
- Bank account statement for the last 6 months.
Expenses Covered in an Unsecured Education Loan for Abroad
- Tuition Fee:
- Accommodation:
- Travel Expense:
- Study Materials:
- Health Insurance:
- Examination and Application Fees: