Maximum Amount You Can Borrow Without Collateral for Study Abroad

Offering a loan without requiring any property as security might seem risky to banks, but it's actually very common these days. Moreover, the biggest question among students is how much loan amount they can get without pledging any collateral. 

This blog actually tells the maximum loan amounts you can get without collateral and shows the main factors that decide these limits, and what you should know before applying.

What Are Education Loans Without Collateral?

Education loans without collateral are money borrowed without keeping any property or asset as security. Generally, banks give money based on income and the credit score of the co-applicant.

Your salary, credit history, and ability to pay back are the things that decide if you can get the loan. Because of the high risk associated with lending education loans without collateral, lenders offer higher interest rates. Moreover, these loans make borrowing easy for students who have no property to give as security.

Maximum Loan Amounts Without Collateral

Education loans come with specific eligibility requirements based on creditworthiness, income, and other financial factors. But what differs is the loan amount that you will get with or without pledging the collateral.

Why Students Choose Education Loans Without Collateral

Students mostly choose loans without collateral for one simple reason…

• Students don't want to put their property at risk.

• The process of unsecured education loans is faster since there are no collateral valuation and verification steps involved.

Education loans without collateral are perfect for students whose parents don't have any property to pledge as collateral.

Further, education loans without collateral offer flexible repayment options. Lenders like private banks and NBFCs can offer higher loan amounts based on your profile, even without pledging collateral. This flexibility makes it more suitable for students who are taking an education loan without collateral.

Maximum Education Loan Without Collateral for Abroad Studies

The main advantage of taking an education loan without collateral for abroad studies is that you can get higher loan amounts. Public banks, especially SBI, offer ₹50 lakh to the students who get into the top 100 universities. Private banks and NBFCs are giving loans without any collateral up to ₹1 crore. 

Top Lenders Offering Education Loans Without Collateral Abroad

Key Factors That Affect Loan Amount and Eligibility

As per lenders, loan eligibility is not based on one factor only; it depends on many things together.

• Good academic performance of the student, like getting good grades and exam scores, will also improve the chances for approval.

• Courses like STEM, MBA, and MBBS actually get higher loan limits. 

• The co-applicant's steady income, credit score, and money history also play a big factor in the education loan approval process.

How to Qualify for a Higher Education Loan Without Collateral

Follow these tips to qualify for a higher education loan amount:

• Lenders prefer top universities that have good rankings in the world.

• Maintaining strong grades and good test scores can improve your chances of getting a higher education loan amount.

• Adding a co-applicant who has a good income and a good credit score for better financial support.

Documents Required and Application Process

As per the lender’s requirements, you will need the following documents regarding the application process.

• An admission letter from your university is needed for this process.

• Academic records include 10th, 12th, and UG certificates, which further verify educational qualifications.

If the Co-Applicant is salaried:

1. Documents proving the identity of the co-applicant, such as

• Aadhar Card
• PAN Card

2. The latest 3 months' salary slips from your company to evaluate your income stability

3. The last 6 months of bank statements

4. The latest 2 years of ITR or Form 16

If the Co-Applicant is self-employed:

     1. Documents proving the identity of the co-applicant, such as

• Aadhar Card
• PAN Card

     2. The last 1-year bank statements

     3. The recent 2-3 years of ITR

     4. The recent 2-3 years of Profit/Loss account and Balance sheet to determine revenue, profit or loss.

5. Business proof and photographs of the business.

Course Details, Fee structure, duration, and tuition and living expenses. Having all documents organised improves your chances of a quick approval.

Conclusion

Students planning to study abroad can surely get non-collateral loans from different types of lenders to cover high tuition fees and living expenses.

In the end, it is not only about the loan amount, it is about choosing the right lender who understands your study journey. The student should check different offers and interest rates only, then pick the one that suits their financial situation and career plans.