Finding the Right Education Loan Scheme: Unsecured Education Loans

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best education loan schemeIn India, a lot of students tend to opt for education loans without collateral because of their super-fast processing time. However, it is essential to understand that the quality of an education loan scheme is determined by the terms and conditions that come with it. This is especially true in the case of unsecured loans which are offered by private lenders. It is extremely essential to have a thorough understanding of the rules and regulations of any unsecured education loan scheme by private lenders, as these are subject to change from time to time. 

NBFCs and private banks are known to change their policies from time to time, depending on several factors. For example, the current economic instability is causing many of these lenders to vary their interest rates on education loan without collateral, and due to volatile market conditions, their processing charges are also being increased. So does this mean that you refrain from borrowing an unsecured education loan under such circumstances? It is extremely essential to conduct a thorough study of each unsecured education loan scheme offered by prominent lenders before making a decision about whether you need to borrow an NBFC education loan.

As the saying goes, “Too many cooks spoil the broth”. Likewise, going through too many websites at once can really confuse higher education aspirants. This article gives you all the required information regarding the study abroad  schemes of NBFC education loan, as well as the abroad education loan schemes of prominent private banks in India.

Prominent NBFC Education Loan Schemes

NBFCs are considered to be one of the most prominent lenders of a loan without collateral for education abroad. The only factor which differentiates NBFCs and private banks is the presence of a banking licence. Hence, the terms and conditions of private banks for a loan without collateral for education abroad vary as compared to those of NBFCs. Let us first take a look at some of the NBFC education loan schemes first.

Incred Education Loan Scheme For Abroad Studies

Incred is considered to be one of the reliable sources of an NBFC education loan without collateral. Since it is a recent addition to the list of NBFCs providing an education loan without collateral, the terms and conditions for funding higher studies with the help of an Incred education loan scheme are flexible as compared to others.

Students who wish to study in countries like Germany, Canada, USA and Ireland are granted an education loan without collateral under the Incred education loan scheme. Important details regarding the Incred education loan scheme for higher education abroad are as listed in the table below.

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 Countries* USA, Germany, Canada, Ireland, Netherlands, Singapore, Australia
Eligible courses** Any Masters & Diploma courses in the STEM or Management fields.
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

*Eligible countries considered for an Incred unsecured education loan:

Students are eligible for an Incred unsecured education loan to study in countries other than the ones mentioned above, provided that they fulfil certain Incred education loan requirements.

Candidates who plan to study in the following countries are deemed eligible for a collateral-free education loan: USA, Germany, Canada, Ireland.

Candidates who wish to study in the following countries are granted only secured education loans from Incred Finance: The UK, Eastern European countries, New Zealand, Russia, Malaysia, Singapore.

** Eligible courses for an Incred education loan for abroad studies: Being a non-banking company, Incred pays close attention to the possibility of employment of a student on the completion of their higher studies abroad. Since the STEM programs and management programs are some of the most promising streams of higher studies abroad, students applying for an Incred education loan to fund their higher studies in these streams are given preference. However, if the student’s profile meets the Incred education loan eligibility criteria, they can be provided secured education loans for courses other than the ones mentioned in the above table.

***Incred education loan processing fee: Incred finance charges close to 0.9% to 1.5% of the total education loan amount as a processing fee for any Incred education loan application. This Incred education loan processing fee is charged only when a particular candidate’s education loan is cleared for approval and only after a candidate chooses to go ahead with the Incred education loan process.

In order to have a detailed understanding of the other details of an Incred education loan scheme, get in touch with the financial team of WeMakeScholars. When you apply for an NBFC education loan without collateral through our team, you get to avail an additional education loan interest waiver of 0.5%.

Read about Incred Education loan: Know the complete details

abroad education loan

Auxilo Education Loan Scheme For Abroad Studies

Auxilo is another NBFC which is well-known for providing non-collateral education loans at feasible interest rates. As is the case with most unsecured education loans, Auxilo pays attention to the chances of employment of a student’s higher education course, before approving an education loan without collateral under the Auxil education loan scheme. An Auxilo education loan without collateral can be your next option for abroad education funding. The application process for an Auxilo education loan without collateral is paperless, hassle-free and easy. This makes it an ideal education loan choice. All the important details of the Auxilo education loan scheme are listed below.

Auxilo Education Loan Parameters Values
Auxilo Education Loan Interest Rate* 11% to 14%, depending on a student’s profile
Processing Time 10-12 Days when applied online
Accepted co-applicants Close Blood relatives
Preferred courses*** Masters & Diploma Courses in STEM & Management fields
Loan Margin 0%
Loan Tenure 10 years
Maximum Available Loan Amount Rs.40-45 Lakhs
Preferred Countries*** USA, Germany, Canada, Ireland
Auxilo Education Loan Processing Charges** 1% to 5% of the loan amount
Auxilo Education loan insurance fees 1% of the loan amount

** Courses For which Auxilo Education Loan is Granted:

Due to the nature of unsecured education loans, all Auxilo unsecured loans are granted only after giving thorough consideration to the country in which candidates wish to pursue their higher studies. If you wish to borrow a collateral-free education loan from Auxilo Finserve to study in any of the countries which are not mentioned in the above table, you may consider borrowing a collateral-based education loan.

In order to apply for an Auxilo education loan, you may fill the Auxilo education loan application form online.

***Countries given due preference by Auxilo Finserve for abroad education loan.

Since there is no collateral security involved in unsecured loans, it is critical for NBFCs to look at the chances of employment offered in the fields chosen by the loan candidate. There are a few countries in the world which promise a bright career to deserving candidates. According to the flexibility of their policies, Auxilo has put together a list of countries that are most preferred by students.

If a candidate wishes to fund their studies in a country other than those listed above, they may explore the collateral education schemes introduced by Auxilo Finserve. Candidates who have had a difficult time getting loans from other lenders are also considered for the same.

** Auxilo Education Loan Processing Charges & Insurance Charges

Auxilo Finserve Pvt Ltd. charges close to 0.9% to 2% of the total Auxilo unsecured loan amount as processing fees. The Auxilo education loan processing charges are subject to change with the changing policies. So ensure the same with your loan processing officer before commencing your Auxilo education loan process.

A collateral free education loan does not require candidates to pledge any asset as collateral. It is for this very reason that the Auxilo education loan rules state that it is mandatory for candidates to purchase an Auxilo education loan insurance. The loan insurance charges are 1% of the total unsecured education loan amount.

If you are looking for a detailed explanation of the education loan terms mentioned in the above table, do get in touch with the financial team of WeMakeScholars. They can provide you with all the necessary support and assistance regarding the education loan process.

 

Avanse Education Loan Scheme For Abroad Studies

If you are looking for a reliable education loan scheme which caters for all of your financial needs at comparatively lower interest rates, then an Avanse education loan without collateral is your solace. The Avanse education loan scheme for abroad studies takes care of 100% of all of the expenses which a student is likely to incur during their higher studies abroad. The below table will give you complete information about the various important terms of a typical Avanse education loan without collateral.

Avanse Education Loan Parameters Values
Eligible courses* Masters & Diploma programmes in any of the STEM programmes offered by reputed universities of certain notable countries. Professional & Technical courses like MBA and Masters are given due preference.
Eligible Countries** USA, Germany, Canada, Ireland
Avanse education loan Rate of Interest*** Varies between 11% and 15%.
Maximum loan amount Rs.45 Lakhs (Unsecured edu loans) loan amounts vary for collateral education loans
Avanse loan repayment**** Simple interest levied in the course duration
Avanse education loan processing fees Varies between 1%-2% of the total loan amount
Loan Margin Nil
Avanse education loan maximum loan tenure 10 years

*Courses eligible for a collateral free education loan from Avanse

Avanse Financial Services limited caters to the funding requirements of students who wish to fund their higher education course in any of the fields belonging to the STEM (Science, Technology, Engineering and Medicine) category.

Students who wish to fund their courses belonging to other professional fields such as Arts & Humanities, pilot training and license courses, etc. can apply for an avanse education loan with collateral.

** Countries eligible for an unsecured education loan from Avanse

An education loan from Avanse is provided to students who wish to pursue their higher studies from any of the major countries mentioned in the table above. However, depending on a number of factors of a student’s profile, unsecured education loans can be granted to the particular student to fund their higher studies in countries other than the ones mentioned in the above list.

It is understandable that not all of the terms mentioned in the above table would make sense to those who are new to the abroad education loan process. In order to get a clear idea of the education loan terms of an Avanse education loan without collateral, and also to avail concession on your education loan interest rate, do get in touch with the financial team of WeMakeScholars.

abroad education loan

Education Loan Schemes of Private Banks

The terms and conditions of  unsecured education loan schemes of private banks are more or less similar to those offered by prominent NBFCs functioning in India. However, their repayment terms are similar to those of certain government bank education loan schemes. Let’s take a look at some of them.

The Axis Bank Education Loan Scheme For Abroad Studies

An Axis Bank education loan process is easy, quick and simple. You can find all the necessary information related to Axis Bank education loan for abroad studies, here

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.

Also read about Axis bank education loan

 

ICICI Bank Education Loan Scheme For Higher Studies Abroad

Unsecured education loans for higher studies abroad under the ICICI education loan scheme are provided to students who have gained admission into two different categories of universities. The ICICI Bank has divided most of the universities across the world into two different lists. The education loan terms applicable to each category are different. The below table depicts each of these categories, the type of universities which come under them and the type of ICICI education loan schemes which are applicable to them.

University Category Type of university Type of ICICI bank abroad education loan provided
A1 All well-ranked universities offering professional courses belonging to the STEM category and management courses. Unsecured/partially secured loans of up to Rs.40 Lakhs only*.
A2 Universities whose rank is slightly lesser than those listed in the A1 list Unsecured/ partially secured loans of up to Rs. 20 Lakhs only*
A3  Universities with above average ranking Secured loans only

You may have observed that an ICICI education loan without collateral is granted only to the students attending universities in the A1 and A2 lists. The following table shows the education loan terms applicable to both categories of universities.

ICICI Bank Education Loan Terms A1 Universities A2 Universities
Maximum education loan amount Up to INR 40 Lakhs Up to INR 20 Lakhs
ICICI Education Loan Interest Rate UG:11.75%PG: 11.25% UG:11.75%PG: 11.25%
Total Loan Tenure 10 years 10 years
Processing Fees 1% of total education loan amount 1% of total education loan amount

There are various ways of applying for an ICICI education loan without collateral. Candidates can fill the ICICI bank education loan online application form through their official website. In order to enjoy the complete benefits of any of the schemes of an ICICI higher education loan, it is better to apply through WeMakeScholars. Many a time, students are only able to get partial information about the various terms of an ICICI bank education loan for higher studies.

Why Apply Through Us?

At WeMakeScholars, our financial team strives very hard to help you get the better end of these schemes. Our team can negotiate certain terms on your behalf, depending on the nature of your profile and many other such factors. So stop looking for more options and request a callback with us today to get access to the best education loan service. What makes the entire process even better is the fact that our services are absolutely free of cost.

Nowadays, thanks to the internet, it is easy for anyone to be misinformed, especially in the case of education loan schemes. The content of all our articles are thoroughly researched and are completely genuine.

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 at 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, China, France among others.

 

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