Not everyone can take secured education loans for abroad studies considering the lack of collateral. Thus, education loans without collateral help them secure funds even with a low budget. Such loans do not require aspiring applicants to pledge/ mortgage a security with the bank against the loan amount.
Multiple banks in India like SBI, HDFC, ICICI Bank, IDBI Bank, and others provide education loans without collateral. Let’s check out the major details and answer the most frequently asked question- Which banks give education loans without collateral for abroad?
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List of Banks for Education Loans Without Collateral
While most banks in India provide unsecured education loans only up to 7.5 lakhs, others provide up to INR 40-50 lakhs. Multiple banks also offer loans without collateral of up to INR 1 crore. The loan amount depends on various factors like creditworthiness and eligibility criteria of the applicant.
We have compiled a list of major banks that are known for offering trusted and hassle-free services to borrowers looking to avail education loans without collateral for abroad.
| List of Banks providing Education Loans without Collateral from Abroad | Maximum Loan Amount |
| ICICI Bank | Up to INR 1 crore |
| Axis Bank | Up to INR 1 crore |
| HDFC Bank | Up to INR 50 lakhs |
| IDFC First Bank | Up to INR 50 lakhs |
| Union Bank of India | Up to INR 40 lakhs |
| YES Bank | Up to INR 40 lakhs |
ICICI Bank
ICICI Bank is one of the best and most renowned private sector banks in India. ICICI Bank education loans to study abroad are offered with and without security. Education loans without collateral for abroad are provided up to INR 1 crore for premier institutes.
- The loans are sanctioned based on pre-admission sanctions, academic records, entrance exam scores like GRE/ GMAT/ IETLS/ TOEFL, and confirmed admission to the university.
- Borrowers can apply by visiting the nearest bank branch, online, or through Vidya Lakshmi Portal.
- If you are an existing ICICI Bank customer, you can check your eligibility for instant sanction of education loans without collateral for abroad.
- You can claim for the interest paid on education loans by obtaining an ICICI interest certificate from the bank.
Also Read: Embarking on higher studies to Germany? Check out the details of education loans without collateral to study in Germany. The blog includes multiple lenders like public and private banks, and NBFCs offering collateral-free loans abroad.
Axis Bank
Axis Bank is another best option to avail of higher education loans without collateral for abroad. The bank provides education loans up to INR 1 crore at competitive interest rates starting from 13.70% p.a.
- Applicant has to pay a processing fee of 2% of the loan amount + GST charges.
- Axis Bank education loan processing time is 15 days during which the bank verifies the documents submitted and ascertains the loan sanction amount along with loan terms and conditions.
- Students can open an Axis Bank student account. This offers multiple benefits and can be used for various purposes such as depositing scholarship money, usual savings etc There is no minimum balance requirement.
- Applicants can get pre-admission sanctions based on their profile and avail of income tax rebates on education loans under Section 80E of the Income Tax Act.
HDFC Bank
Education loans without collateral from HDFC bank are provided up to INR 50 lakhs for selected institutes. The bank requires minimal documentation and not-so-strict eligibility criteria for HDFC Bank education loans to study abroad.
- There are no hidden charges as the education loan process is completely transparent.
- Applicants can easily apply through the HDFC Bank Vidya Lakshmi Portal or online through their official website. You can also visit the nearest bank branch.
- You get pocket-friendly EMI options at interest rates starting from 9.50% p.a.
- HDFC Bank’s education loan disbursement process is completely online with simple documentation and speedy transactions.
IDFC First Bank
Another bank that provides education loans with collateral for abroad up to INR 50 lakhs is IDFC First Bank. The loan is provided for 30k+ courses across 4000+ universities across the globe. The bank is renowned for providing faster loan sanctions via its seamless application process.
- IDFC First Bank EMI Payments on education loans are started after the completion of the moratorium period (course duration + 1 year).
- Students admitted to desired institutions who fulfil the eligibility criteria can apply for collateral-free loans from IDFC First Bank.
- Applicants can also opt for an IDFC First Bank Forex card that allows them to make payments in local currency in any country.
- IDFC First Bank’s disbursement process is streamlined and efficient, which makes it a preferable choice among many to opt for education loans from this bank.
Union Bank of India
Union Bank of India provides education loans up to INR 40 lakhs without collateral for abroad. Under various schemes like the ‘Special Union Education Loan Scheme for Premier Institute Abroad Studies’ and ‘Union Education Abroad’, applicants can apply for loans.
- The application process is simple and hassle-free to apply for Union Bank education loans to study abroad.
- The bank takes less than 7 days to process an education loan which depends on factors such as submitting the loan application, providing relevant documents, collateral etc.
- Union Bank education loan interest rates are competitive and range between 8.55% to 9.50% on collateral-free loans.
- Applicants who have taken an education loan from another bank or financial institution can opt for Union Bank balance transfer on education loans at a competitive interest rate and a flexible repayment period.
Also Read: Check out all the details about education loans for MBA without collateral and discover the benefits, best banks, and eligibility criteria.
YES Bank
YES Bank education loans without collateral can be availed up to INR 40 lakhs. Interest rates start from 10.99% p.a. The loans can be repaid for up to 15 years, however, the applicant can foreclose the education loan at any time after paying 12 EMIs.
- Documents required for YES Bank education loan related to identity, academics, address, and income must be submitted along with a duly filled application form.
- Applicants can opt for YES Bank education loan top-up if they decide to take admission to another course soon after they complete their existing course.
- Female students can enjoy attractive interest rate concessions on education loans from YES Bank.
- YES bank education loan disbursement process is very smooth. The fast-paced document verification process, allows students to receive the education loan amount without any hassle.
Please note: Public banks like the State Bank of India and Indian Overseas Bank that follow the IBA model education loan scheme for abroad studies offer collateral-free loans up to INR 7.5 lakhs.
This was all about the best banks that offer education loans without collateral for abroad at higher amounts. It is important to go through parameters like interest rates, repayment periods, and other terms and conditions before finalising the lender.
FAQs
Banks such as ICICI Bank, Axis Bank, HDFC Bank, IDFC First Bank, Union Bank of India, and YES Bank offer education loans without requiring collateral for students pursuing higher studies abroad.
The maximum loan amount varies among banks, ranging from INR 40 lakhs to INR 1 crore, depending on factors like creditworthiness and the chosen educational institution.
Applicants can apply for these loans by visiting the nearest bank branch, applying online through the bank’s website or portals like Vidya Lakshmi, or specific application channels provided by the bank.
Typically, applicants need to submit documents related to identity, academic records, address proof, and income details, along with a duly filled application form.
The processing time varies among banks but generally ranges from 10 to 15 days, depending on factors such as document verification, loan amount, and the bank’s internal procedures.
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.
