Studying abroad is a dream for many Indian students. However, financing education overseas can be a major hurdle. Since every student cannot afford collateral so it is important to know which bank gives education loans without collateral for abroad. Several banks in India offer education loans without collateral for studying abroad, making it easier to pursue higher education without pledging assets. Let’s understand all the details about the top banks, their loan features, eligibility criteria, and tips for securing a collateral-free education loan.
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Top Banks Offering Education Loans Without Collateral for Abroad Studies
Several leading banks in India offer education loans without collateral to help students finance their studies abroad. Some of the top options include SBI’s Global Ed-Vantage Scheme, which provides up to INR 7.5 lakhs without collateral for students. You can get collateral-free loans of up to INR 1 crore from ICICI Bank subject to terms and conditions. Some other major lenders are HDFC Credila education loan, Union Bank of India etc. Check the features of loans from different banks and financial institutions below:
State Bank of India (SBI) Global Ed-Vantage Scheme
The State Bank of India (SBI) Global Ed-Vantage Scheme is a specialised education loan designed for Indian students pursuing higher studies abroad. It offers loans up to INR 7.5 lakhs without collateral for students admitted to reputed foreign universities. It provides competitive interest rates starting, a moratorium period and flexible repayment options. Check the major features of the SBI Global Ed-vantage education loan below:
- Loan Amount: Up to INR 7.5 lakhs without collateral
- Interest Rate: Competitive interest rates starting from 11.15% (floating rate of interest subject to change every quarter
- Eligibility: Students admitted to top-ranked foreign universities.
- Moratorium Period: Course duration plus 1 year or 6 months after getting a job.
Also Read: Check out this blog to know the details of what happens to education loan if the borrower dies.
HDFC Credila Education Loan
The HDFC Credila Education Loan is a popular choice for Indian students seeking financial support to study abroad without collateral. HDFC Credila is known for its flexibility, it offers customised loan amounts to individual requirements and doesn’t mandate security for students admitted to reputed institutions. Check some of the major features of the HDFC Credila education loan below:
- Loan Amount: Collateral-free loans of up to INR 80 lakh
- Key Feature: No collateral is required for reputed institutions
- Special Benefit: Pre-approved loans before admission
- Interest rate: Competitive interest rate starting from 9.5%
ICICI Bank Education Loan
The ICICI Bank Education Loan provides a seamless funding solution for Indian students aspiring to study abroad. It offers collateral-free loans of up to INR 1 crore for top-ranked universities and courses. It provides a repayment tenure of up to 15 years and a moratorium. Check the major features of ICIC Bank education loan to study abroad below:
- Loan Amount: Up to INR 1 crore for select courses.
- Repayment Tenure: Up to 15 years post-moratorium.
- Moratorium period of course period plus one year or 6 months after getting employed.
- Loans sanctioned without collateral for students enrolling in premier global universities.
Bank of Baroda Education Loan Scheme
Bank of Baroda is one of the best public sector banks in India and is popular among students for study abroad loans. If you are thinking about which bank gives education loan without collateral for abroad then the Bank of Baroda must be considered. Check the major features of the Bank of Baroda education loan to study abroad below:
- Loan Amount: Up to INR 7.5 lakhs with up to 15 years repayment period under the Baroda Scholar Loan scheme.
- Eligibility: Students gaining admission to top-tier institutions abroad.
- Additional Benefits: Lower processing fees and attractive interest rates starting from 8.5%.
Axis Bank Education Loan
The Axis Bank Education Loan is a reliable option for Indian students pursuing higher education abroad. The bank offers collateral-free loans up to INR 1 crore for eligible courses and institutions. Check the features of Axis Bank education loan below:
- Loan Amount: Up to INR 1 crore without collateral and a repayment period of up to 15 years.
- 100% coverage for expenses like tuition fees, accommodation costs, travel and other related expenses.
- Interest rate starts from 13.70% (for loan amounts above INR 7.5 lakh)
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.
What is a Collateral-Free Education Loan?
A collateral-free education loan is a type of financial assistance that allows students to fund their studies without pledging any assets. As per the IBA model education loan the students need to pledge collateral such as property, fixed deposits, or other securities, as a guarantee for loans above INR 7.5 lakh. However, there are banks which provide collateral-free loans based on the student’s academic merit, the reputation of the institution, and the employability prospects of the chosen course.
Eligibility Criteria for Collateral-Free Loans
To be eligible for a collateral-free education loan, students must meet certain criteria. Some of the essential eligibility criteria required for collateral-free education loans are admission to a recognised and reputed foreign university or institution and a strong academic record. Check more details on eligibility criteria for collateral-free education loans below:
- The loan is usually sanctioned based on the student’s profile, with the co-borrower (usually a parent or guardian) having a stable financial background and a good credit score.
- Banks also consider the student’s course of study, future employability, and the co-borrower’s ability to repay the loan when determining eligibility.
- The student must be at least 18 years old with a strong academic record.
- A strong credit history of the co-borrower (usually a parent or guardian) boosts approval chances.
Securing an education loan without collateral for studying abroad has become simpler with the support of leading Indian banks. By choosing the right bank and meeting eligibility criteria, you can unlock your dreams of studying at top international universities without financial stress. Check some common FAQs based on which bank gives education loans without collateral for abroad below:
FAQs
A collateral-free education loan is a type of loan where no security, such as property or assets, is required. It is granted based on the student’s academic merit, the institution’s reputation, and the co-borrower’s financial profile.
You can borrow up to INR 1 crore, depending on the bank and the course you choose. Some banks offer higher loan amounts for top-tier institutions.
Typically, a parent or guardian with a stable income and a good credit score can act as the co-borrower for the loan.
You must have an admission offer from a recognized foreign university, a strong academic record, and a co-borrower with a good credit history.
Yes, collateral-free education loans usually cover not only tuition fees but also living expenses, travel, and other academic costs.
Interest rates vary between 9-12% depending on the bank and your profile. Some banks offer discounted rates for top institutions.
Repayment tenure generally ranges from 5 to 15 years, with a moratorium period covering the course duration plus a few months after completion.
You can apply online or by visiting the bank’s branch with documents like admission proof, academic records, and co-borrower details.
Yes, some banks, like HDFC Credila, offer pre-approved loans based on the course and university, even before admission is confirmed.
Most banks charge processing fees, which are usually a small percentage of the loan amount. It’s important to check the terms and conditions for any additional charges.
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.
