An education loan without collateral comes as a boon to a lot of higher education aspirants in India. The fact that one could fund one’s higher studies without having to mortgage assets is one of the major features of a non collateral education loan. When it comes to courses to study in India, the cost of education is comparatively lesser than that required to study abroad. Despite this, there are several higher education aspirants who wish to study in India with the help of an education loan. An education loan without collateral is a convenient option for the students who wish to study in India without mortgaging their assets.

This article sheds light on the different schemes of non collateral education loan to study in India offered by various lenders. The education loan schemes of the following lenders who are some of the common choices of a majority of students who wish to study in India, are discussed here.

Let us take a look at the education loan policies of the ICICI Bank which is one of the most popular choices of candidates among private lenders in India.

ICICI Bank Education Loan To Study in India

The ICICI Bank is perhaps one of those rare private banks which offers an education loan for Bachelors courses to study in India and abroad. The education loan policies offered by them is comparatively more feasible than those of most other private lenders of education loans. Let us take a look at the particulars of the education loan scheme they have for higher studies in India.

The ICICI Bank offers secured, unsecured as well as partially secured education loans to students who seek one. An ICICI Bank education loan offer depends on which list the university chosen by the candidate belongs to. The nature of the education loan provided by ICICI Bank for the different university lists are as follows:

  1. Universities belonging to A1 list: Unsecured loans & partially secured loans.
  2. Universities belonging to A2 list: Unsecured & partially secured loans offered.
  3. Universities belonging to A3 list: Only secured loans are offered

Points to Remember While Applying For an ICICI Bank Education Loan For Study in India

  1. ICICI Bank does provide unsecured education loans to students who wish to pursue their higher studies in certain universities only.
  2. The terms and conditions of any such ICICI Bank education loan for abroad studies depend on a lot of other factors such as the course chosen by the candidate, the university category to which the candidate’s university belongs to, the co-applicant’s financial profile, etc. 
  3. ICICI  unsecured education loans are only provided for courses in universities belonging to the A1 and A2 categories. 
  4. Any ICICI Bank education loan scheme offers unsecured education loan amounts of up to Rs.40 Lakhs for PG courses in universities belonging to A1 and A2 categories only.
  5. Similarly, for undergraduate courses, an ICICI  unsecured education loan amounts of up to Rs.20 lakhs is offered under any ICICI Bank education loan scheme. This is applicable for undergraduate courses in universities belonging to the A2 category only.

ICICI Bank Interest Rate

Parameter

Interest Rates for Category A1

Interest Rates for Category A2

Interest Rates for Category A3

ICICI Bank Education Loan RoI

PG Courses: 11.75%

PG Courses: 12.5%

UG Courses: 12.75%

UG Courses: 13.5%

PG Courses: 12.99%

Other Details 

ICICI Education Loan Parameters

Values

Maximum available education loan for study in India

INR 50 Lakhs

Processing Fees

1% of the education loan + Applicable Taxes

Repayment + Moratorium

UG: Upto 5 years post course period + 6 months
PG: Upto 8 years post course period + 6 months
Moratorium to be granted as per the course and the education loan amount borrowed by the applicant.

Education Loan Margin

Falls between 5% to 15% for loans above INR 20 Lakhs. 

FD/Scholarship/ Initial fee paid to the university can be considered as the margin money.

If you are still not clear on any of the parameters of the ICICI Bank education loan which have been described in the previous paragraphs, get in touch with the financial team of WeMakeScholars for clarification and assistance. Let us try and understand the unsecured education loan policy of the Axis Bank when it comes to funding options to study in India.

Axis Bank Education Loan For Study in India

Axis Bank has been at the forefront of modern banking in India. The bank’s education loan policies are student-friendly and their services have been applauded by a lot of aspirants who study in India with the help of them. Let us take a look at the Bank’s take on education loans for study in India.

Axis Bank Education Loan Details

Axis Bank Education Loan Parameters

Values

Maximum Education Loan Amount

Rs. 75 Lakhs

Minimum Loan Amount*

Rs. 50,000

Education Loan Margin

Up to 4 Lakhs: Nil

> 4 Lakhs: 15%

Axis Bank Education Loan Interest Rate*

13.7% to 15.2% 

Axis Bank education loan processing fees*

For loans of up to Rs.20 Lakhs: Rs.15000 + GST (as applicable)

For loans above Rs.20 Lakhs: 0.75% of the differential loan amount above Rs.20 Lakhs, plus GST (as applicable)

Expenses Covered

Tuition Fees, hostel charges, cost of books, etc.

The above details are applicable to both domestic (study in India) and abroad education loans. Also, the loan margin figures and the Axis Bank education loan interest rate vary on a case-by-case basis. These figures will also depend on whether candidates opt to borrow a collateral education loan or a non-collateral education loan.

Get in touch with the WeMakeScholars team today in order to get an Axis bank education loan in a simple and easy manner.

Axis Bank Education Loan Interest Rate

Axis Bank offers both secured as well as unsecured education loans to those in need. The Axis bank education loan interest rates are tailor-made to suit the financial requirements of all candidates who are looking for an Axis Bank education loan to study in India.

The Axis Bank education loan rate of interest differs based on the location of higher education as well as the required loan amount. The exact values of the interest rates are as follows.

  1. For loan amounts of up to Rs.4 Lakhs: 15.2%
  2. For loan amounts greater than Rs.4 Lakhs and up to Rs. 7.5 Lakhs: 14.7%
  3. For Loan amounts greater than Rs.7.5 Lakhs: 13.7%

The above rates are subject to change according to the modifications made in the Bank’s education loan policies from time to time. 

A candidate’s merit, the rank of the college/university that they plan to attend and the nature of the course are some of the factors that are considered before granting any concession in the Axis Bank education loan interest rates.

Avanse Education Loan To Study in India

Avanse Financial Services is one of the up and coming NBFCs or Non-Banking Finance Companies which provides non-collateral education loans to candidates who wish to study in India, as well as abroad. Their education loan process is simple, hassle-free and systematic. You will come across the details of an Avanse education loan to study in India, in the following table.

Avanse Education Loan To Study in India

Important Parameters

Values

Interest Rate

12.65% + Spread*

Maximum & Minimum Education Loan Amounts

Min Loan Amount: INR 1 Lakh

Max. Loan Amount: Unlimited

Loan Margin

Nil. 100% of the entire higher education expenses are covered by the education loan

Processing Fees

1% to 2% of the total education loan amount

Repayment Details

  • Total loan tenure: 120 Months or 10 years.

  • Repayment of interest begins immediately after the first disbursement is transferred.

  • Repayment of the principal amount can be made in the form of EMI, once the course is over.

  • Moratorium period of six months after the course or three months after getting a job is allotted to candidates.

  • No pre-payment allowed in the first six months of the loan disbursement.

Mode of Application

Online

*Spread in Education Loan Interest Rate: In education loan, a spread refers to a premium applied by the lender in addition to the base rate. This premium amount varies from one candidate to the other, depending on their financial requirements.

If you are stuck at any point in your education loan process, get in touch with the WeMakeScholars team at the earliest opportunity for better assistance and guidance.

Auxilo Education Loan To Study in India

Auxilo is another NBFC that has carved a niche for itself in the NBFC sector. Auxilo offers education loans to study in India at competitive interest rates with flexible repayment options. Let us take a look at some of the features of Auxilo education loan scheme to study in India.

Auxilo Education Loan Details

Important Parameters

Values

Education Loan Interest Rate

12.70% + Spread

Maximum & Minimum Education Loan

Depends on the candidate’s requirements

Expenditure coverage

100% of the expenses are covered under the Auxilo education loan to study in India

Loan Margin

Nil, as the loan is non-collateral

Repayment Tenure + Moratorium

Total loan tenure: 120 Months or 10 years.

Repayment of interest begins immediately after the first disbursement is transferred.

Repayment of the principal amount can be made in the form of EMI, once the course is over.

Moratorium period of six months after the course or three months after getting a job is allotted to candidates.

No pre-payment allowed in the first six months of the loan disbursement.

Processing Fees

The NBFC charges 2% of the total education loan amount as processing fees.

Mode of Application

Online

Last but not the least, let us take a look at the education loan policies of Incred which is one of the prominent NBFCs granting education loans in India, apart from Avanse Financial Services and Auxilo.

Incred Education Loan to Study in India

Incred is another NBFC which offers an education loan to study in India. All the Incred education loan schemes have been designed by keeping in mind the various financial requirements that any student might be required to fulfil during their higher education process. Before listing the details about the various factors of an Incred education loan scheme, here’s a brief layout of some of the Incred education loan details. Below given are some of the basic details of an Incred education loan for abroad education.

Incred education loan parameters

Values

Incred education loan rate of interest

11% to 13% (ROI varies on a case by case basis)

Maximum loan amount

Rs.50 Lakhs

Eligible courses**

Any Masters & Diploma courses on the graduate or postgraduate level

Processing Charges***

0.9% to 1.5% of the total loan amount + 1% compulsory insurance fee (Extra GST applicable)

Loan Margin 

Nil

Maximum Loan Tenure

10 years

Incred Education Loan Repayment

  1. According to the Incred education loan terms related to Incred loan repayment, every candidate will be required to start the payment of interest towards their unsecured education loan, from the very next month of availing their loan disbursement.
  2. The payment towards this Incred loan repayment is also accepted in the form of partial deposits. 
  3. Candidates will be charged with a partial payment of Rs.2000 to Rs.5000 every month.
  4. The Incred loan EMI payments start on the completion of the course duration. 
  5. Incred loan EMI payments are also accepted through online transactions.
    Failure in adhering to the Incred education loan repayment terms and conditions may invite additional penalty.

Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education Finance. We are associated with 10+ public /Pvt Banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it’s free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, New Zealand, France among others.