Education Loan Without Collateral and Co-Applicant: A Complete Guide

While studying abroad may be a prestigious experience, funding can be challenging, especially for students without collateral or a co-applicant. Fortunately, some financial organisations like M-Power and Prodigy offer loans to study abroad students without the need for a co-signer or any collateral. These international student loans allow students to pursue academic goals without financial barriers in their path.

In this guide, we will explore the best no cosigner foreign education loan, eligibility criteria, interest rates, and how Student Cover can help you secure the right overseas student loan effortlessly.

What is an education loan without collateral and co applicant?

 Education loan without collateral

A collateral-free education loan is an unsecured loan that helps students to cover their study expenses abroad without putting up assets as collateral. Unlike secured loans for study abroad, these loans are granted based on:

• The student's academic background
• Credit Score of the Applicant and the Co-Applicant
• The student’s future earning potential

No cosigner international education loan

A no cosigner education loan is a type of international student loan that does not require a co-signer, co-applicant, or guarantor. The loan is approved primarily based on: 

• The student’s academic profile

• The reputation of the university and the course

• Country of study

• The student’s future earning potential

• Rather than family income or credit history.

Who Can Apply for an education loan without collateral and co applicant?

If you’re looking for an Loan to study overseas without collateral and co applicant, you must meet the following eligibility criteria:

1. Confirmed Admission to a Recognised University

• You must have an offer letter from an approved university or institution abroad
• Typically applicable for countries like the USA, the UK, Canada, Australia, and Germany.

2. Course Level

These loans are mainly available for:

• Master’s programs (MS, MBA, STEM courses)
• Some professional or job-oriented postgraduate programs (Undergraduate programs are usually not eligible)

3. Strong Academic Profile

• Consistent academic performance
• Relevant academic background aligned with the chosen course
• Competitive test scores (GRE, GMAT, IELTS, TOEFL) may strengthen eligibility

4. High Employability & Career Potential

• Course should lead to strong post-study employment opportunities
• Preference for STEM, management, data, technology, and healthcare fields
• Lenders assess future earning potential, not current income

5. Eligible Nationality

• Generally available to Indian students and other international students
• Some lenders restrict eligibility to specific nationalities

6. Good Credit History (If Applicable)

• Personal credit history may be checked if available
• A limited or no credit history does not automatically disqualify you

7. Age Requirement

• Usually between 18 to 35 years at the time of application

Who Is Usually Not Eligible

• Students applying for a diploma or low-employability courses
• Applicants without a confirmed admission letter
• Candidates applying for undergraduate programs (in most cases)

Loan Amount and Coverage

Most students who apply for an abroad education loan can expect coverage for:

• Tuition fees and other university expenses
• Living costs, including rent and daily expenses
• Travel and insurance costs
• Books, Study materials, laptops, and other essentials
• Local transportation and personal expenses

NBFCs typically offer overseas student loans ranging from USD 1,00,000 up to USD 2,20,000.

Specific Countries Covered: education loan without collateral and co applicant

• USA
• UK
• Canada
• Australia
• Germany

Best Lenders Offering education loan without collateral and co applicant

If you are looking for a no-cosigner foreign education loan, here are some of the top lenders:

Prodigy Finance

MPOWER Financing

Education Loan Process at Student Cover

Step 1: Contact Student Cover

Students can connect with a Student Cover representative through:

• Website form: https://www.studentcover.in/education-loan/
• Loan helpline: 9871377966
• Online chat: https://studentcover.in/

Once contacted, the student is assigned a dedicated Loan Buddy who will handle the case end-to-end.

Step 2: Share Loan Requirements

The student needs to share the following details:

• Type of education loan required
• Expected loan amount
• Preferred interest rate (ROI)
• Academic background and admission details
• Financial profile (if applicable)

Step 3: Profile Evaluation

• Student Cover creates a client profile entry
• A detailed eligibility assessment is conducted
• If the student is eligible, Student Cover coordinates with the relevant lender (bank/financial institution) and updates the student

Step 4: Documentation

• A Student Cover loan agent collects the required loan documents
• For students outside Delhi NCR, an official bank representative collects documents within 48 hours

Step 5: Approval & Negotiation

• The client profile is submitted to the lender for evaluation
• Within 7 working days, Student Cover informs the student about approval or rejection
• If required, the student can request ROI negotiation
• Student Cover shares the final lender offer within 2 working days

Step 6: Processing Fee & Sanction Letter

• After accepting the offer, the student pays the processing fee directly to the lender (via cheque or online transfer)

Upon receipt of the fee, the lender issues the loan sanction letter within 48 hours

Note- Also Learn how students can finance overseas studies through an Abroad Education Loan Without Collateral, including key criteria, repayment structure, and interest rate factors

Key Benefits with Student Cover – Your Best Loan Partner

Instead of applying directly to banks and NBFCs, choosing Student Cover offers significant advantages:

• Compare Multiple Lenders: Get access to the best loans for study abroad from leading banks and NBFCs.
• Higher Loan Approval Rates: Student Cover assists in strengthening loan applications, increasing approval chances.
• Better Interest Rates: Negotiation with banks helps students secure lower interest rates.
• Faster Processing: End-to-end guidance ensures quick loan disbursement.
• Processing Fees Waiver options: Additional services like Processing fee waive off options are available for students, which means Students are not burdened with a high amount of hidden charges while applying for a study abroad loan.

Note- Students aiming for American universities can check our complete breakdown of Education Loan to Study in USA, including bank vs NBFC interest rates and loan features.

Documents Required for a No-Cosigner Foreign Education Loan

Prodigy Finance 

• Valid passport (clear colour copy)
• Passport Size Photo
• Selfie/identity verification (as part of KYC)
• Proof of current address (utility bill / official document, usually last 3 months)
• University admission letter/offer letter / I-20
• Credit report from a recognised credit bureau
• Bank statements/proof of savings (if applicable)
• Scholarship or sponsorship letter (if applicable)
• Proof of external financial support, if any (family or sponsor)

MPOWER Financing

• Valid passport or government-issued photo ID
• Passport Size Photo
• Proof of residential address
• University admission letter / I-20 or equivalent
• Academic transcripts from previous education
• Standardised test scores (GRE / GMAT / TOEFL / IELTS, if required by the university)
• Cost of attendance document from the university
• Proof of other funding sources (scholarships, savings, grants)
• Recent bank statements (typically 3–6 months)
• Student visa document (usually required before disbursement)

Other Financing Choices if You Are Not Eligible

If you do not qualify for an education loan without collateral and a co-applicant, you can explore other options:

• Scholarships & Grants: Apply for merit-based or need-based scholarships to reduce loan requirements.
• Fixed Deposit Loans: Some banks allow loans against fixed deposits with low interest rates.
• Part-time Jobs: Many countries permit students to work part-time, covering living expenses.

Typical Obstacles and Solutions for Them

• High Interest Rates: Use Student Cover to compare lenders and secure better loan terms.
• Loan Rejection: Ensure your academic profile and university ranking match lender requirements.
• Processing Delays: Apply as soon as possible and provide the necessary paperwork for quicker approval.
• Cosigner Issues: The Student might face issues in which the co-applicant is not there, or the income does not matchable as per requirement of Banks.

Frequently Asked Questions (FAQs)

 What is an education loan without collateral and a co-applicant?

It is an unsecured study abroad loan that does not require property, fixed deposits, or a financial co-applicant. The Education Loan is totally granted according to your academic records, Other Financial Support Sources, and based on your future earning potential and not only on your credit history

 Can Indian students get a collateral-free education loan to study abroad?

Yes, Indian students can apply through select banks, NBFCs, and international lenders if the eligibility criteria are met.

Are a co-applicant and a co-signer the same in an education loan?

No, a co-applicant shares responsibility for repaying the loan and is usually a parent or guardian, while a co-signer only guarantees repayment if the borrower defaults. They serve different legal roles in an education loan.

Is a co-applicant mandatory for a no-cosigner foreign education loan?

No. Some international lenders like Prodigy and M- Power waive the co-applicant requirement for eligible universities and courses.

 What are the top lenders for US co-signer education loans?

Prodigy Finance and MPOWER Financing are the top lenders offering U.S. education loans without a co-signer or collateral, based on the student’s academic profile and future earning potential.

 How to get a US cosigner for an education loan?

To get a US co-signer for an education loan, the co-signer must be a US citizen or permanent resident with a strong credit history. Typically, parents, relatives, or close family friends meet this requirement and guarantee the loan repayment.

How much education loan students can expect without collateral and a co-applicant?

Typically from USD 1,00,000 up to USD 2,20,000

What expenses are covered under this loan?

Tuition fees, living expenses, travel, visa costs, and study materials.

What is the interest rate for education loans without collateral?

Interest rates generally range between 9.09% to 13%, depending on the lender and profile.

 Is it possible to get no co-signer loans for studying in the UK from Prodigy?

Yes — Prodigy Finance does offer no co-signer education loans for students planning to study in the UK.

 How to get a student loan without credit or a cosigner?

You don’t need to spend time applying individually to multiple lenders. Student Cover allows you to compare different lenders based on your requirements and provides a dedicated Loan Advisor who guides you through every step of the process — from eligibility assessment to documentation, approval, and disbursal.

How much credit score needed for student loan without cosigner?

Generally It does not require a specific credit score or traditional credit history to qualify for a student loan without a co‑signer — loans are assessed based on your future earning potential rather than credit score.

 Does M-Power Provide Collateral-Free Education Loan Except US and Canada?

No — M‑Power (MPOWER Financing) does not offer collateral‑free education loans except in the US and Canada; its official international student loans are designed for students attending eligible universities in the U.S. or Canada without requiring collateral or a cosigner. 

For which study destinations does Prodigy provide education loans without collateral?

Prodigy Finance offers collateral‑free student loans for postgraduate/master’s studies in multiple countries, including the United States, the United Kingdom, Germany, France, Canada, and Australia