All About Personal Loans for Students with No Income, No Credit or Cosigner

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Studying Abroad is undeniably a lifelong dream for many aspiring students to get quality education and gain global exposure. One common hindrance which every student face while planning their study abroad journey is the financial crunch. To solve this problem many individuals opt for a personal loan or an education loan but getting approved for these kinds of loans is not easy, so in today’s blog we will cover everything related to personal loans for students without income, credit history, etc. So stay tuned and continue reading.

Types of Personal Loans for Students

There are 2 types of personal loans, let’s understand both of these loans in a detailed manner:

Secured Personal Loans

Secured personal loans are loans that require collateral. Collateral can be anything of value and is used to secure the loan. In case you default on the loan, the lender has the right to seize and sell the collateral to recover their losses.

For students, common types of collateral include property, vehicles, or investments. The advantage of secured personal loans is that they typically come with lower interest rates compared to unsecured personal loans as lenders have less risk involved.

Unsecured Personal Loans

Unsecured personal loans are loans that do not require any form of collateral. These types of loans are granted based solely on your creditworthiness and ability to repay the loan. As a student with no income or credit history, it can be difficult to qualify for an unsecured personal loan without a cosigner. Additionally, these loans typically come with higher interest rates compared to secured personal loans since lenders are taking on more risk without any collateral.

Must Read: Secured vs Unsecured Education Loans

Important Factors of Getting a Personal Loan

There are some important factors that might influence the probability of getting your loan approved as a student:

  • It’s usually tough to get a loan approved without proper income proof, and credit history but there is a probability of getting a secured loan with some kind of collateral equivalent to the amount borrowed
  • Even if you have a credit history and your credit score is low, the probability of getting a personal loan is low and banks may charge a high-interest rate
  • Your age and your credit history age can also influence the chances of getting a loan
  • If the purpose of taking the loan is education, then your merit and academic records will play a vital role in getting the personal loan approved 

Also, Read- What is a CIBIL Score?

How to Get a Personal Loan without Co-signer, Income, or Credit History?

There is no direct way of getting personal loans for students without proper income proof, credit history, or co-signer. Major banks in India or abroad rely on these documents as they prove your creditworthiness, but you can follow any of the options below which can help you in getting a personal loan approved:

Option 1- Get a Secured Personal Loan

This is the safest option and also considerably easy to get approved, as mentioned earlier you will need a collateral asset like an investment portfolio, property, etc to initiate the process. The advantage of taking a secured loan is it’s fast, low interest and other fees, and it’s easier than other loans to get approved. Sometimes you may need a co-signer if the asset value is lower than the money borrowed but usually, it’s not required.

Option 2- Enrolling in Government Schemes

There are many schemes provided by the government of India where benefits like education loans and student credit cards are provided without going through so of hassles of traditional banks. The process is online but there are a few drawbacks like credit history is required to check your creditworthiness and the amount is also lower than expected sometimes.

Option 3- Try Other Lenders  

Here are some lenders that purely focus on students’ educational dreams and sometimes provide loans without a credit history or income:

  • HDFC CredilaHDFC Credila is a subsidiary of HDFC Bank and is India’s first dedicated education loan company. HDFC Credila offers personal loans for students to study abroad without income, no credit history, or cosigner up to Rs 45 lakhs but it will be purely based on your merit to get the loan approved. 
  • SBI Global Ed-VantageSBI Global Ed-Vantage is offered by the State Bank of India for Indian students who want to pursue study programs at foreign colleges or universities. SBI also offers a unique feature where a loan can be repaid in up to 15 years after the course period plus 12 months of repayment holiday.

Also, Read- Education Loan Scheme by Narendra Modi

Documents Required

Here are some documents that may come in handy while applying for a personal loan:

  • Identity proof such as passport, Aadhaar card, PAN card, etc
  • Address proof like utility bills or rent agreement
  • Academic records such as mark sheets, certificates, transcripts
  • Offer Letter of the Foreign University 
  • Bank statements for the last six months
  • Income tax returns of the last two years (if applicable)

Eligibility Criteria for Personal Loan

There is a basic eligibility criteria for any kind of personal loan, take a look at them mentioned below:

  • You must be a citizen of India and have supporting documents as proof
  • You must be enrolled in a full-time undergraduate or graduate program at an accredited institution
  • You need to maintain a good academic record 
  • You must have a valid passport
  • You need to provide a valid document that proves the ownership of the collateral (if provided)
  • An active bank account in the name of the borrower is also necessary

Tips While Taking a Personal Loan

Here are some tips you should keep in mind while opting for a personal loan:

  • Compare the interest rates offered by different lenders to find the best deal
  • Consider the fees charged by different lenders, such as origination fees and prepayment penalties
  • Choose a lender that you trust and that has a good reputation
  • Avoid any kind of loan with high-interest rates and high penalty charges
  • Check if there are any hidden charges or high processing fee

Relevant Read- Education Loan without Collateral


Q1. Is there any difference between an education loan and a personal loan?

Ans. Yes, and one of the major and significant differences is, education loans offer lower interest rates compared to personal loans.

Q2. Can a relative or a friend of mine be a cosigner?

Ans. Yes, a relative or a friend can be a cosigner for your personal loan but this also means that they need to take full responsibility if you are unable to repay the loan in the future.

Q3. What is the minimum age limit for getting a personal loan?

Ans. For getting a personal loan approved your minimum age should be 18 years, but for some major banks, the minimum age should be 21 years. 

This was everything related to personal loans for students. Reach out to Fly Finance for all finance-related concerns to simplify your study abroad experience with zero hindrances.

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