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Education Loan Without Collateral: How to Get it to Study Abroad? check now

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:

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.

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.

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%.

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

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

: When to apply for an education loan?

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, addressing concerns and providing 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. Worried about timelines for 2024? Fret not! Apply with Yocket now to secure your seat for 2024 and access personalized guidance through Yocket Premium. Don’t miss out—forge your path to academic success with Yocket by your side!