HEST 2025
India's Largest Higher
Education Scholarship Test

Total Scholarships up to 2 Cr


Know more and Apply

Registrations close in

Education Loans are a lifeline to many Indian students who are aspiring to study abroad. However, to secure the required amount of approximately ₹20–₹50 Lakhs Loan Without Collateral is quite challenging.

In this blog, we will explore how to get a loan amount of 20-50 lakhs without pledging any collateral, along with enhancing the chances of the same.

Is it possible to get  ₹20–₹50 Lakhs Education Loan without Collateral?

  • Yes, students can get Education Loan woth 20-50 lakhs without collateral. However, Lenders have a specific set of criteria to be met by the student to get an Education Loan. Many lenders, such as public banks, private banks, and NBFCs, are offering Education loans without collateral.
  • Since collateral is not involved, lenders have stringent rules to offer Education Loans without collateral. Read further to know how to get an Education Loan without Collateral.

How to Get ₹20–₹50 Lakhs Loan Without Collateral?

As previously discussed, to get an Education loan without collateral, students are required to meet the prescribed eligibility criteria by the lender.Let's understand what students need to ensure to get ₹20- ₹50 lakhs of an Education Loan.

  1. Listed university: Students need to make sure that the chosen university falls under the prime list category of the lender. Lenders have a specific list of universities that are categorized based on the performance and the Employability chances of the respective university. Students opting for these listed colleges have a high possibility of getting employed. Thus, the chances of repayment of the loan are higher; therefore, lenders want the selected college to be listed.
  2. Strong Financial Co-Applicant:  A strong financial co-applicant with stable income and a good credit history can enhance the chances of Education Loan approval without collateral. Lenders ask for a financial co-applicant who takes the repayment responsibility of the applicant. Lenders do this to reduce the risk associated with the education loans without collateral. Each lender has different financial eligibility criteria depending on various factors. Thus, students need to ensure that they have a strong financial co-applicant to get a ₹20–₹50 Lakhs Loan Without Collateral.
  3. Strong Academic profile: A strong academic background can help students in getting an Education Loan without collateral. A consistent and good performance in all the grades can ensure the lender that the student is more likely to complete the course and repay the loan. This indeed reduces the risk to the lender. So, students who want to go for Education Loans without collateral must make sure that they are consistent and good performers in academics.
  4. STEM courses: STEM courses usually have high earning potential. Students choosing STEM courses for higher education have a high potential of repaying the loan. Lenders, consider this factor to check the loan repayment capacity before offering a no-collateral Education Loan. Thus, students who want to get an Education Loan without Collateral, opting for STEM courses, can improve their chances.
  5. TEST scores: A good test score can increase the chances of getting an Education loan without collateral. Entrance exams such as GMAT, GRE, SAT, IELTS, and TOEFL are conducted to evaluate the potential of the students. Scoring good marks in the above exams adds strength to the profile of the student, improving the chances of getting an Education Loan.

Who are the lenders offering Education Loans without Collateral?

Many lenders offer Education Loans without collateral in the Loan market. Many public banks, private banks, and NBFCs offer zero-collateral Education Loans.let us explore in detail .

Public Banks: A previously discussed, many public lenders offer Education loans without Collateral. Public banks offer zero collateral Education Loans at a lower interest rate than the private lenders. 

The eligibility criteria, terms and conditions are comparatively stricter than private lenders. Banks such as SBI, BOI, etc, offer Education Loans without collateral. The main eligibility criteria required for public banks is the university and the future earning potential of the studentis considered.

SBI, under the scheme of GLOBAL EDVANTAGE, is offering a zero-collateral Education Loan of up to 50 lakhs .However, the student has to choose the top 100 listed universities prescribed by the SBI.

Private Banks: Under private banks, there are many lenders offering Education Loans without collateral. Private banks such as ICICI, IDBI, AXIS,HDFC  are the primary lenders offering these loans.

However, each lender has a different set of eligibility criteria to be met by the student. Private banks charge a higher rate of interest than public banks. Each lender has different schemes to encourage students to pursue education abroad.

The loan processing time for private lenders is less than that of the public banks, because they mostly operate online.

NBFCs(Non-banking Financial Corporations): Many NBFCs offer Education Loans without any collateral. NBFCs such as Avanse, Credila, Incred, and Auxilo are a few of the top NBFCs offering these loans.

NBFCs offer Education Loans at competitive interest rates. However, these interest rates are higher than the public banks.

Obtaining an education loan to fund your studies can be quite challenging, with different lenders offering varying options. Contact WeMakeScholars, an organisation partnered with over 15 public and private lenders. When you apply for an education loan through us, our experienced team will help you find the most suitable loan for your higher studies. Request a callback today to contact our team.

 A Brief Comparison of Lenders

Category

Public banks

Private banks

NBFCs

Rate of interest 

Starts from 10.5%

 Starts from 10.5%

 Starts from 11%

Req. CIBIL score

 Min. 685

 Min. 700

 Min.700

Co-applicant's Income

Not required, the loan is offered based on the future earning potential of the student.

Minimum 3 LPA

Minimum 3 LPA

University 

 Must secure admission from the top 100 listed universities

 Must secure admission from prime-listed universities as mentioned by the lender

Not required.

Can get a loan up to 30 lakhs even if the university is not top 100

 

Documents required  to get a ₹20–₹50 Lakhs Loan Without Collateral for Abroad Education

The following are the documents required to get the Education Loan amount of ₹20–₹50 Lakhs.

KYC Documents: Documents proving the identity and address of the student and the co-applicant

  • Adhaar card
  • PAN card
  • Driving license
  • Passport

Admission Letter: To increase the chances of zero collateral Education Loans, students should secure admission in the top 100 universities.

Academic Records: Documents containing all the academic records required by the lender.

Co-applicant Documents: The co-applicant's documents, including the credit history, salary slips, and bank statements as required by the lender.

Conclusion

Education Loans are the best source of funds for students' higher Education. In this blog, we have explored how to get an how to Get ₹20–₹50 Lakhs Loan Without Collateral for Abroad Education. We have also compared the lenders briefly to find the best lender.

An education loan sanction is crucial for funding the education of many students. However, students often struggle to get their loans sanctioned without the right guidance. WeMakeScholars can help you in such situations. Our team is dedicated to assisting students in receiving education loan approvals on time. We provide complete education loan assistance to students applying through us. Request a callback today, and one of our experienced financial officers will contact you at your earliest.