Student Loan Without Collateral for Studying Abroad

Collateral-free student loans, also known as unsecured loans, do not require any asset (like property or fixed deposits) as security. These loans are typically based on the student's academic record, the reputation of the institution they are admitted to, and their potential future income.

• No Risk to Assets: Since no collateral is required, there's no risk of losing personal or family assets if the loan is not repaid.
• Faster Processing: Without the need for asset evaluation, the loan processing time is usually quicker.
• Access to Higher Education: Enables students from financially weaker backgrounds to pursue education abroad without the burden of providing security.

To be eligible for a collateral-free student loan, students generally need to meet the following criteria:

• Academic Record: A strong academic record increases the chances of loan approval.
• Admission to Recognized Institutions: Admission to reputed universities or colleges abroad is often a prerequisite.
• Co-Applicant: Most lenders require a co-applicant (usually a parent or guardian) with a stable income.
• Course Type: Loans are typically available for full-time professional or technical courses.

• Loan Amount: Up to INR 20 Lakhs
• Interest Rate: Starts from 8.65% p.a.
• Repayment Tenure: Up to 15 years
• Moratorium Period: Course duration plus 6 months

• Procedure:
  • Fill out the application form available on the SBI website or visit the nearest branch.
  • Submit necessary documents including admission proof, fee structure, academic records, and co-applicant’s income proof.
  • SBI evaluates the application based on the applicant’s academic performance and the reputation of the institution.
  • Upon approval, the loan is sanctioned and disbursed directly to the university.

• Loan Amount: No upper limit (based on the requirement)
• Interest Rate: Starts from 11% p.a.
• Repayment Tenure: Up to 10 years
• Moratorium Period: Course duration plus 6 months

• Procedure:
  • Apply online through the Credila website or visit a branch.
  • Provide documents including KYC, admission letter, cost breakup of the course, and co-applicant’s financial documents.
  • HDFC Credila conducts a creditworthiness assessment of the co-applicant.
  • After approval, the loan amount is disbursed as per the fee schedule of the institution.

• Loan Amount: Up to INR 40 Lakhs (unsecured up to INR 20 Lakhs)
• Interest Rate: Starts from 10.5% p.a.
• Repayment Tenure: Up to 10 years
• Moratorium Period: Course duration plus 6 months

• Procedure:
  • Apply online or at an ICICI Bank branch.
  • Submit necessary documents including KYC, academic records, admission letter, and co-applicant’s income proof.
  • ICICI Bank reviews the application based on the applicant’s academic background and the university’s reputation.
  • Upon approval, the loan amount is disbursed directly to the university.

• Loan Amount: Up to INR 40 Lakhs
• Interest Rate: Starts from 13.70% p.a.
• Repayment Tenure: Up to 15 years
• Moratorium Period: Course duration plus 6 months

• Procedure:
  • Apply online or visit an Axis Bank branch.
  • Provide documents such as academic records, admission proof, KYC, and co-applicant’s financial documents.
  • Axis Bank evaluates the application based on the applicant’s academic performance and the university’s reputation.
  • After approval, the loan amount is disbursed as per the fee schedule of the institution.

• Loan Amount: Up to INR 25 Lakhs (unsecured)
• Interest Rate: Starts from 8.55% p.a.
• Repayment Tenure: Up to 15 years
• Moratorium Period: Course duration plus 1 year

• Procedure:
  • Apply at a PNB branch or online.
  • Submit required documents including admission letter, academic records, KYC, and co-applicant’s income proof.
  • PNB evaluates the application based on the applicant’s academic background and the university’s reputation.
  • Upon approval, the loan is disbursed directly to the university.

• Loan Amount: Up to INR 40 Lakhs
• Interest Rate: Starts from 11.75% p.a.
• Repayment Tenure: Up to 10 years

• Procedure:
  • Apply online through the InCred website.
  • Provide necessary documents such as academic records, admission proof, KYC, and co-applicant’s financial documents.
  • InCred assesses the application based on the applicant’s academic performance and the university’s reputation.
  • Upon approval, the loan amount is disbursed directly to the university.

• Loan Amount: Up to INR 50 Lakhs
• Interest Rate: Starts from 12% p.a.
• Repayment Tenure: Up to 10 years

• Procedure:
  • Apply online or visit an Avanse branch.
  • Submit required documents including admission letter, academic records, KYC, and co-applicant’s income proof.
  • Avanse evaluates the application based on the applicant’s academic background and the university’s reputation.
  • Upon approval, the loan is disbursed directly to the university.

• Loan Amount: Up to INR 40 Lakhs
• Interest Rate: Starts from 12.25% p.a.
• Repayment Tenure: Up to 10 years

• Procedure:
  • Apply online through the Auxilo website.
  • Provide necessary documents such as academic records, admission proof, KYC, and co-applicant’s financial documents.
  • Auxilo assesses the application based on the applicant’s academic performance and the university’s reputation.
  • Upon approval, the loan amount is disbursed directly to the university.

• Start by researching various banks and financial institutions offering collateral-free student loans.
• Compare interest rates, loan amounts, repayment terms, and moratorium periods.

• Review the eligibility criteria for each lender.
• Ensure you meet the academic and admission requirements.

• Academic transcripts and certificates
• Admission letter from the foreign university
• Income proof of co-applicant (salary slips, ITR, etc.)
• Identity and address proof
• Passport and visa details
• Statement of expenses for the course

• Fill out the loan application form available online or at the bank branch.
• Attach all required documents.
• Ensure that the application is complete and accurate.

• The bank will process your application, which may include a credit assessment of the co-applicant.
• Some banks might conduct a personal interview.

• Once approved, the loan amount is usually disbursed directly to the university’s account.
• You will receive a sanction letter detailing the loan amount, interest rate, repayment schedule, and terms.

• Maintain a Good Credit Score: A high credit score of the co-applicant increases the chances of loan approval.

• Negotiate Terms: Don’t hesitate to negotiate interest rates and other terms with the lender.

• Understand the Repayment Terms: Be clear about the repayment schedule, including the moratorium period and interest rates during this period.

• Explore Scholarships: Combine loans with scholarships and grants to reduce the financial burden.