Getting education loans without collateral is a perfect way to secure funds for higher studies. One can secure funds without mortgaging an asset with the lending institution. Many aspiring students prefer to take collateral-free education loans for the USA from various sources like public banks, private banks, and NBFCs. The maximum amount of education loans without collateral to study in the USA may differ based on the sources it is availed from. In this blog, we will help you discover and learn all about collateral-free education loans in the USA.
Table of contents
What are Collateral-free Education Loans?
Collateral-free education loans are unsecured loans which do not require a property/ asset to be pledged with the banks, but, a financial co-applicant may be required. The loan processing time is less due to relaxed requirements and minimal documentation relating to assets.
However, the eligibility criteria are stringent considering the creditworthiness and financial stability of the applicant and co-applicant. Interest rates are also a little high due to the absence of collateral/security.
Also Read: Check this article to find out how to get an education loan without a guarantor and fund your education abroad without risking your assets.
Collateral-free Education Loan for the USA
Despite high expenses, many Indians aspire to pursue higher education in the USA, one of the top 5 study-abroad destinations. The reasons include academic excellence, a flexible education system, vibrant campus life, and easy availability of collateral-free education loans for USA studies.
In this section, we will explore the different lenders in India providing unsecured study loans for the USA.
Collateral-free Education loans from NBFCs
NBFCs are non-banking financial companies that provide collateral-free loans to study in the USA up to INR 75 lakhs at interest rates starting from 11.50% p.a. They offer higher loan amounts and more flexibility in repayment options. The table below includes the maximum financing by the top 5 NBFCs and the interest rates-
| NBFCs | Quantum of Finance | Interest Rates |
| InCred Finance | Up to INR 60 lakhs | Starting at 12.25% p.a |
| Avanse Financial Services | Up to INR 75 lakhs | Starting at 14.25% p.a |
| Auxilo | Up to INR 40 lakhs | Starting at 12.70% p.a |
| Prodigy Finance | Up to 100% cost of studying abroad | Starting at 11.50% p.a |
| HDFC Credila | Up to INR 7.5 lakhs Up to INR 20 lakhs can be offered to exceptional students without collateral | Starting at 13.80% p.a |
Also Read: Know all about LLB education loans to study abroad and the best public banks, private banks, and NBFCs providing education loans for LLB students.
Collateral-free Education Loans from Private Banks
Private Banks like Axis Bank, IDFC Bank, HDFC Bank and others provide collateral-free education loans for the USA up to INR 1 crores. Education loans from private banks are sanctioned within 15 days of submitting the application form and required documents. One of the advantages that students can avail of is income tax rebates on education loans under Section 80E.
The table below includes the quantum of finance and interest rates on collateral-free education loans for the USA-
| Private Banks | Quantum of Finance | Interest Rates |
| ICICI Bank | Up to INR 1 crore | Starting at 10.95% p.a |
| Axis Bank | Up to INR 75 lakhs | Starting at 10.70% p.a |
| IDFC First Bank | Up to INR 75 lakhs | Starting at 10.50% p.a |
| HDFC Bank | Up to INR 45 lakhs | Starting at 9.55% p.a |
| YES Bank | Up to INR 45 lakhs | Starting at 12% p.a |
Collateral-free Education loans from Public Banks
Public Banks are allowed to lend education loans of up to INR 7.5 lakhs as per the RBI guidelines on education loans. Students can avail of collateral-free study loans for the USA from top public banks like SBI, Bank of Baroda, Union Bank of India, and Canara Bank. Take a look at the table below and check out the interest rates.
| Public Banks | Interest Rates |
| SBI Bank | 10.40% – 14% p.a. |
| Bank of Baroda | 11.40% – 14% p.a. |
| Punjab National Bank | 9.25% – 14% p.a. |
| Canara Bank | 10% -14% p.a. |
| Union Bank of India | 10.50% – 14% p.a. |
FAQs on Collateral-free Education Loans for the USA
Yes, an aspiring student can take study loans for the USA subject to fulfilment of eligibility criteria
Many aspiring students prefer to take collateral-free education loans for the USA from various sources like public banks, private banks, and NBFCs.
Yes, as per the RBI guidelines on education loans 2024, commercial banks can provide education loans of up to 20 lakhs to study abroad in the US or any other desired country.
Public banks like SBI, Canara Bank, and Bank of Baroda are the best providers of non-collateral education loans for the USA up to 7.5 lakhs. Public banks like Axis, ICICI, and HDFC provide loans of up to 40 lakhs and prominent NBFCs including Avanse, Prodigy, and InCred lend up to 75 lakhs.
This was all about getting collateral-free education loans for the USA from public banks, private banks, or NBFCs based on their needs and requirements. This way applicants can pursue their global dreams without worrying about pledging an asset to the bank.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
| Related Blogs |
| PNB Education Loan Interest Rates |
| YONO SBI Education Loan |
| IndusInd Bank Education Loan Disbursement Process |
Follow Us on Social Media
