Top Banks Offering Education Loans Without Collateral for Abroad Studies

Looking for a foreign education loan without collateral for your studies can be a strenuous process, especially when you don’t know where to start. First, you need to know about unsecured education loan providers in India. So, who offers student loans without collateral in India?

Various banks in India offer education loans for abroad studies without collateral. It is important to be aware of these lenders and their terms before getting started with a non-collateral education loan process. 

This article provides you with information about a list of banks providing education loans abroad without collateral, along with their terms, to help you make the right choice. Now, let's look at the banks that offer abroad education loans without collateral in India. 

Which bank gives education loans without collateral for abroad?

• Unsecured education loans are loans that do not require collateral to be pledged as security. They are instead offered based on the income and creditworthiness of the applicant and co-applicant.
• You can get an unsecured education loan from both public and private lenders in India for abroad studies. These include public banks, private banks, and NBFCs.
• Several banks can provide an education loan up to ₹7.5 lakhs without any collateral under the CGFSEL Scheme.
• Certain pubic and private lenders can offer even higher loan amounts under their loan schemes upon meeting the eligibility. 

Here’s a list of public banks, private banks, and NBFCs that can provide education loans greater than ₹7.5 lakhs without collateral for abroad studies, along with their features:

State Bank of India (SBI)

The State Bank of India (SBI) is one of the best public banks offering education loans for abroad studies. SBI education loan eligibility is very flexible, especially for their unsecured loans. Under its Global Ed-Vantage scheme, SBI offers both secured and unsecured education loans to students who want to pursue higher education in foreign countries. You can get an unsecured education loan from SBI according to your university.

• The maximum unsecured loan amount under this scheme is up to ₹50 lakhs.
• This loan is only applicable for premier institutes.
• This loan is eligible for studies in the USA, UK, Canada, Australia, Ireland, New Zealand, Japan, Hong Kong, Singapore, and Europe.
• Undergraduate, post-graduate, and PHD(Doctoral) courses are eligible for this loan.
• SBI offers an interest-free moratorium period.
• SBI is known for offering low interest rates

Bank of Baroda (BOB)

Bank of Baroda (BOB) provides various education loan schemes to students who want to pursue higher education in India as well as abroad. The Bank of Baroda education loan for abroad offers competitive interest rates and flexible repayment terms. The bank offers unsecured education loans for abroad studies under the Baroda Education Loan to Students of Premier Institutions Scheme.

• The maximum loan amount under the scheme is up to ₹40 without collateral
• This loan is only applicable for premier institutes
• You can use this loan to study in various countries, including the USA, the UK, Canada, Australia, Ireland, and New Zealand.
• This loan can be used to study UG, PG, and PHD courses.
• Simple interest is charged during the moratorium period

ICICI Bank 

ICICI Bank is one of the leading private banks offering abroad education loans without collateral. ICICI Bank offers both collateral and non-collateral education loans for education abroad. The bank specializes in providing unsecured education loans to aspiring students. The ICICI Bank education loan without collateral are known for providing higher loan amounts without security.

• You can get a collateral-free education loan of up to ₹1 crore from ICICI Bank.
• The loan is applicable for premium universities from various countries such as the USA, UK, Canada, Australia, Germany, and Ireland.
• This loan can fund PG and UG courses.
• Interest is charged during the moratorium period.
• ICICI Bank offers a complete digital process for education loans.

Axis Bank

Axis Bank is one of the largest private-sector banks in India that provides non-collateral education loans to students. The bank offers a diverse range of unsecured education loan schemes to help students in their abroad studies. Axis Bank education loan for abroad offers doorstep service and a multi-currency Forex card under the education loan schemes to further assist the students in their education journey abroad.

• The maximum loan amount is ₹1 crore.
• They provide financing for courses offered in prime universities of numerous countries, including the USA, UK, Canada, Australia, Germany, and Ireland.
• They approve education loans for both undergraduate and postgraduate programs.
• Interest is charged during the moratorium period

IDFC Bank

IDFC Bank is a prominent private bank providing unsecured loans to students under its education loan scheme. The IDFC Bank education loan features include up to 100% financing and flexible repayment options for abroad student loans without collateral. IDFC Bank can offer customized solutions and a hassle-free education loan process.

• The maximum loan amount is ₹75 lakhs.
• They support a wide range of courses from selected universities of various countries such as the USA, UK, Canada, and Germany.
• The loan can cover post-graduate and undergraduate courses.
• They can charge interest during the moratorium period

Credila

Credila, formerly known as HDFC Credila, is one of the country's leading Non-banking Financial Companies (NBFCs). It provides both secured and unsecured education loans to students who want to pursue higher education in India and abroad. Credila education loan terms are focused on offering student-centric loans.

• You can obtain an unsecured education loan of up to ₹75 lakhs from Credila.
• Education loans from Credila have a Broad coverage of recognized universities from several countries, including the USA, UK, Canada, Australia, and Germany.
• They can offer unsecured loans for both undergraduate and postgraduate courses.
• Interest is charged during the moratprium period.

Avanse

Avanse Financial Services is an Indian NBFC that specializes in providing fully funded higher education loans for students to study in India and abroad. They offer customized collateral-free loans with no margin according to students’ profiles. Avanse is a new-age NBFC focused on education financing. Avanse education loan without collateral aims to make education accessible and affordable for students.

• The maximum loan amount for a non-collateral education loan from Avanse is up to ₹1.25 crore.s
• Unscured education loans from Avanse cover a wide range of recognized universities from various countries, including the USA, UK, Canada, Australia, Germany, and Switzerland.
• Avanse can provide education loans for undergraduate and postgraduate courses.
• Interest is charged during the moratorium period.

Auxilo

Auxilo Finserv is one of the country’s leading NBFCs. The Auxilo education loan terms and conditions are focused on assisting students in their education. They specialize in providing education loans to students pursuing higher education in India and abroad. They aim to provide fast approvals and hassle-free education loan processes for students. 

• The maximum loan amount is ₹65 lakhs without collateral and can be higher depending on the profile.
• Auxilo offers non-collateral education loans for top universities in various countries, including the USA, UK, Canada, Australia, Germany, and Ireland.
• You can get collateral-free loans for both undergraduate and postgraduate courses from Auxilo.
• Interest is changed during the moratorium period.

Incred

Incred is a Non-Banking Financial Institution (NBFC) in India that primarily provides unsecured student loans for higher studies, both domestically and internationally. They are known for their competitive interest rates and flexible terms. Incred education loan for abroad studies aims to offer fast approvals and customized loan options for students to pursue their education abroad.

• You can get a collateral-free education loan of up to ₹80 lakhs.
• Incred can provide unsecured education loans for recognized universities from various countries, including the USA, Canada, Australia, Germany, Ireland, New Zealand, Hong Kong, and Singapore.
• They cover both undergraduate and postgraduate courses under non-collateral loans.
• Interest is charged during the moratorium period.

Key things to consider before getting Unsecured Education loans

• Each lender will have their list of approved universities for unsecured education loans. Lenders will provide the loans according to this list.
• Most private lenders prefer to give unsecured education loans to students pursuing STEM and Master’s programs.
• However, public banks provide loans for even non-STEM programs.
• Each lender has their eligibility criteria for non-collateral loans. You should meet all the criteria of the respective lender to obtain the loan.
• Education loans from private banks and NBFCs can offer a quick loan process for unsecured education loans as compared to public lenders.
• The moratorium period is the course duration plus 6 months to 1 year, and for unsecured loans, most lenders charge interest during this period. The repayment tenure for all the above lenders is 10 to 15 years.

Conclusion

Many students looking to secure an education loan for higher studies abroad often lack the collateral required. Unsecured education loans are a solution to this. However, securing such a loan without collateral can be quite difficult, especially if you are unaware of unsecured education loan providers and their terms. Hence, this article provides a list of some of the best banks that offer education loans without collateral for overseas studies, along with their terms, to assist you in making an informed decision.

To apply for an unsecured loan for studying abroad, request a callback today. Our team will carefully evaluate your profile to help you find the best loan solution for your education abroad and manage the entire loan process so that you can have a smooth educational experience.