Abroad Education Loan without Collateral from Top Lenders

What is a Collateral-Based Education Loan for Abroad?

A collateral education loan for abroad is a secured loan where the borrower provides an asset, such as property, fixed deposits, or other valuable securities, as security to finance overseas education. The loan amount and interest rate depend on the value of the collateral offered. These loans usually come with lower interest rates, higher loan limits, and longer repayment tenures compared to unsecured education loans.

What is a Non-collateral Education Loan for Abroad?

A non-collateral education loan for abroad is a loan that helps students study overseas without giving property, land, or other assets as security. The loan is approved based on the student’s academic profile, chosen course, university, and future earning potential. In some cases, a co-applicant or co-signer may still be required. These loans usually have higher interest rates than collateral-based loans.

Comparison between Collateral and Non-Collateral Education Loan for Abroad

Top NBFCS Offering Education Loan for Abroad Studies without Collateral 

Top Private Banks Offering Abroad Education Loan Without Collateral

Best International Lenders Offering Abroad Education Loan Without Collateral And Co-Applicant

Looking for a No Cosigner International Education Loan? If you don’t have a co-applicant or cosigner, you can still apply for an overseas education loan with certain lenders. Learn how to secure funding for your international studies without relying on a co-applicant. Read our detailed guide on No Cosigner International Education Loan.

Eligibility for Non-Collateral Education Loan?

Academic Profile: Your past academic performance, test scores, and consistency in studies play a major role in approval.

University & Course Reputation: Loans are more likely to be approved for recognized universities and high-demand courses with good career outcomes.

Future Earning Potential: Lenders assess expected salary and job prospects after graduation in the chosen country.

Country of Study: Popular study destinations with strong employment opportunities (like the USA, UK, Canada) have higher approval chances.

Financial & Credit Profile: For loans that require a co-applicant, their income stability and credit score can impact approval.

Documents Required for Non- Collateral Education Loan?

A. Basic KYC Documents

• Aadhaar Card
• PAN Card
• Valid Passport
• Passport-size photographs (2)

B. Academic Documents

• Class 10th Marksheet & Certificate
• Class 12th Marksheet & Certificate
• Graduation Marksheet (all semesters)
• Degree Certificate (if available)
• Entrance exam scorecards (GRE / GMAT / TOEFL / IELTS / SAT/PTE/DUOLINGO)

C. Admission & Fee Confirmation

• Unconditional Offer Letter from the university
• Official Fee Structure (Tuition + Living Expenses)
• I-20 (for USA students)

D. Gap Declaration (If Applicable)

• Gap explanation letter signed by the student

E. Employment Proof (If Applicable)

• Offer Letters / Experience Letters
• Latest3 Months  Salary Slips
• Latest 6 months bank statements

F. Passport & Visa (If Issued)

• Passport (first and last page)
• Student Visa copy (if available)

Note- If Australia is your study destination, read our dedicated article on Student Loan for Australia to understand current interest rates, loan limits, and eligibility criteria.

How to compare 15+ Lenders with Student Cover and Apply for Non- Collateral Education Loan?

• Visit Student Cover’s website to compare 15+ overseas education loan lenders offering non-collateral education loans for abroad.
• Explore our lending partner pages to understand loan amounts, interest rates, and eligibility.
• Or click Apply Now from the website’s menu, or directly visit https://www.studentcover.in/education-loan-study-abroad/, click on Apply Now and fill out the education loan form.
• Once submitted, a dedicated abroad education loan advisor will be assigned to assist you.
• Ensure all required information is filled correctly to avoid delays and get faster support.

Disbursement Process with Student Cover

• After the overseas education loan sanction and visa approval (or before visa in some countries), the student coordinates with the lender to fix the first disbursement date.
• The student submits required documents such as the admission letter, the fee structure, the KYC, income proof, and the disbursement request form.
• The lender issues a Disbursement Letter, which mentions the approved amount, payment schedule, and whether funds go to the university or student account.
• Tuition fees are usually paid directly to the university, while living expenses may be credited to the student’s bank account or a forex card.
• Disbursement can be full, partial, or segmented, depending on the fee schedule and lender policy.
• Funds are often released semester-wise or year-wise as per the academic calendar and payment deadlines.
• Timely disbursement depends on complete documents, a good co-applicant profile, and clear communication with the lender.

FAQs

Can I get a 40 lakh education loan without collateral?

Yes, many NBFCs and private banks offer non-collateral education loans up to ₹40 lakhs based on your academic profile, course, and university.

Which is better: Credila or Avanse?

Both are good options. Credila is suitable for higher loan requirements, while Avanse offers slightly lower interest rates for eligible profiles.

How much education loan can be taken without collateral?

Non-collateral education loans can go up to ₹75 lakhs–₹2 crore with Indian lenders and even higher with international lenders.

How much salary is needed for a 50 lakh loan?

A stable co-applicant income with low financial burden is preferred; the exact salary requirement varies by lender and profile. For a ₹50 lakh education loan, lenders typically prefer a co-applicant earning ₹70,000–₹1,00,000 per month, depending on existing liabilities and credit score.

Which bank gives 9.5% interest for abroad education loans?

Interest rates may start near 9.5% for strong profiles, but final rates depend on the lender, course, and overall eligibility.

Is it better to get a secured or an unsecured loan?

Secured (collateral) loans offer lower interest rates and higher amounts, while unsecured loans are faster and require no assets.

What credit score is needed for unsecured loans?

A good credit score (generally 700 or above) improves approval chances, especially for non-collateral education loans.

What documents are required for unsecured loans?

KYC documents, academic records, admission letter, fee structure, and income proof are commonly required.

Can half the education loan be collateral-based and half non-collateral?

Yes, select lenders offer hybrid loans depending on the total loan amount and borrower eligibility.