Are you concerned about financing your dream education abroad? Dive into the world of education loans without collateral, a boon for Indian students aspiring to study abroad. The increasing popularity of such loans stems from their accessibility and the growing number of Indian students seeking international education. This blog is your comprehensive guide, unraveling the details of overseas education loans without security and addressing all your queries. Worried about the financial aspect? Explore the enticing realm of non-collateral education loans as we break down the essentials for you.
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Types of Education Loans
Before moving on to an education loan abroad without collateral, let us understand the two broad categories of education loans available to international students willing to study abroad:
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Collateral Education Loan
As the name suggests, a collateral education loan requires the borrower to pledge collateral (house, property, gold, insurance policies, land, fixed deposits, etc) as security to get the required loan amount.
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Non-Collateral Education Loan
Unlike the collateral education loan, an education loan for abroad studies without collateral does not require the borrower to pledge collateral as security. In the case of an education loan without collateral abroad, borrowers are required to submit documentation and fulfill relevant requirements and eligibility criteria.
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What is Education Loan without Collateral?
To understand more about an education loan for study abroad without collateral, let us first know what collateral is.
So what is a collateral?
A collateral is an asset that can be used by borrowers to pledge against the loan amount as security. Collateral can be any asset like property, fixed deposit, agricultural land, gold, etc.
Several banks in India offer a study abroad loan without collateral, up to a particular sum or amount, thereby making it easier for study abroad students to pursue their studies at the best universities across the globe. It has also been observed that a study abroad loan without collateral has a slightly higher rate of interest and a shorter repayment period.
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Top Lenders that Provides Education Loan without Collateral
Lenders available for a loan without collateral to study abroad can be categorized into public and private lenders. Some prominent lenders include:
- Public banks like SBI, Bank of Baroda, etc offer applicants a loan of up to 7.5 Lakhs without collateral.
- Private banks like Axis Bank, ICICI Bank, HDFC, etc offer students a loan amount of up to 40 lakhs without collateral. Private banks also have a repayment period of around 10-12 years, and an interest rate between 10-12%.
- Other lenders include NBFCs (non-bank financial companies) like Incred and Auxilo, which offer students an abroad study loan without security of up to 40 lakhs with a rate of interest between 10-18%.
- There are also some foreign lenders available like Leap Finance, Prodigy Finance, etc. These lenders support applicants by offering an overseas education loan without collateral of up to 80% of the total expenses. The interest rates are observed to lie in the range of 10-16%.
Know more about: HDFC Credila Education Loan
This video talks about the various types of education loans- with collateral and without collateral, along with the most prevalent lenders in the market!
Eligibility Requirements for an Education Loan without Collateral to Study Abroad
A loan without collateral for study abroad requires applicants to meet specific eligibility criteria, like:
- A minimum score of 60% in high school to ensure the employability potential
- Financial co-applicant income
- Degree program that the applicant wishes to pursue
- A country that the applicant wishes to apply for
- The university that the applicant is applying to
Some private banks cater to only particular countries and specific degree programs.
Let us now move on to the documentation, which plays a very crucial role when applying for a government student loan to study abroad. To apply for an education loan for abroad studies without collateral security. It is necessary to submit some required documents that have been listed below:
- Application form for the loan
- Income proof for the family (income tax returns, property proof, etc)
- Standardized test scores
- Academic transcripts
- Aadhar card (KYC documents)
- Birth certificate
- Bank statements for the past 6 months
- PAN Card
- Residential proof
- Acceptance letter from university abroad
- Self-declaration
Suggested: Important Education Loan Terms and Conditions
When applying for an overseas education loan without collateral security, a financial co-applicant, and specifically his/ her income, plays a very crucial role. The financial co-applicant’s income is a deciding factor for receiving a study abroad loan without collateral.
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Application Procedure to Apply for Education Loan without Collateral
Let us now discuss the application process to apply for an education loan for abroad studies without collateral:
- Step 1: Choose an overseas education loan without collateral security, which is the most suitable for you
- Step 2: Check all information including moratorium period, repayment tenure, education loan for abroad studies by Indian government interest rate, etc
- Step 3: Visit the official website for the education loan you’ve chosen
- Step 4: Fill in the application form
- Step 5: Scan and upload the required documents
- Step 6: Wait for the decision
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An education loan for abroad studies without collateral can be easy to get hold of provided you fulfill all the requirements and submit all the relevant documents. It also becomes very important for an international student like you, to understand the terms and conditions, of the abroad study loan without the collateral that you choose. You can even connect with our Yocket Loan Assistance program to know in detail about a study abroad loan without collateral!
From the Desk of Yocket
In the complex landscape of financing education abroad, non-collateral education loans emerge as a beacon for Indian students, eliminating the need for security. This blog has unraveled the intricacies of such loans, addressed concerns and provided a comprehensive guide. Worried about funding your international education? Explore the realm of non-collateral education loans with ease. From understanding the types of loans to eligibility criteria and top lenders, we've navigated the financial maze for you.
Seize the opportunity to fund your global education journey hassle-free! Yocket is your trusted companion in navigating the complexities of education loans without collateral. Navigating the complexities of financing your global education is made seamless with our personalized guidance. Worried about securing the best loan terms? Yocket Premium provides expert assistance, ensuring you make informed decisions for your educational journey.
