How to get education loan for studying abroad without collateral?
Do you constantly dream of studying abroad and having the best experience living your dream life, but the thought of high tuition fees is weighing you down? We know you’ve been up all night searching on Google for “how to study abroad without spending a fortune.” Well, what if we told you that fulfilling your study abroad dream is now possible without sacrificing your parents’ assets? With education loans emerging as one of the most affordable and feasible options to pursue your studies abroad, Indian lenders have stepped up their game by offering education loans without the need for security or collateral. Let’s dive deeper into how to get an education loan for abroad studies without collateral and how this can be a game changer for all students worrying about investments for studying abroad! Education Loans without Collateral An unsecured education loan or education loan without collateral for studying abroad is where thelender promises to offer you a loan for your higher studies abroad without the need of a collateral or security in exchange. These loans are offered on the basis of academic record, admission to arecognised institution, and future earning potential. Collateral refers to the tangible or intangible assets that you pledge to secure your loan. This caninclude properties, land, shares, gold and mutual funds. Interest rates for education loans without collateral are higher than those for secured loans as thelenders have a high risk involved due to no security. The amount for such loans also is determined by the lenders’ policies and your profile. Secured vs Unsecured Education Loans for Studying Abroad To make it easier for you to understand, let’s highlight some of the key differences between education loan with and without collateral! PARAMETER EDUCATION LOAN WITH COLLATERAL EDUCATION LOAN WITHOUTCOLLATERAL Loan amount offered Up to Rs 2 crores(or 100% cost of education) Up to Rs 85 lakhs(or 100% cost of education) Collateral Requirements Collateral required in the form ofproperty, land, shares, gold or mutual funds No collateral required Interest Rates Comparatively lower as a reason of security Comparatively higher as a reason of no security Processing Time Comparatively more due todocumentation, property valuationand more. Comparatively less due to lessdocuments involved Features of a Non-Collateral Student Loan for Abroad Studies Some of the significant features of an education loan for studying abroad without collateral are: Expenses Covered in a Non-Collateral Study Abroad Loan Let’s walk you through a list of expenses covered by a non-collateral loan for your abroad education! These expenses to be covered vary as per the lenders’ policies. Banks Offering Non-Collateral Loans for Studying Abroad Wondering which banks offer study abroad education loans without needing collateral? Here’s a list of some of the best lenders for education loans to study abroad without collateral along with their loan amounts and interest rates. LENDER FINANCIALINSTITUTIONTYPE MAX LOANAMOUNTDISBURSED INTERESTRATE PROCESSINGFEE COUNTRIES COVERED State Bank of India Public Bank Rs 75 lakhs 10.15%*onwards – USA, UK, Canada,Australia, Germany, Ireland& many others Union Bank of India Public Bank Rs 40 lakhs 9.25%*onwards – USA, UK, Canada,Australia, Germany, Ireland& many others Axis Bank Private Bank Rs 50 lakhs 10.50%*onwards 0.75% + GST USA, UK, Canada ICICI Bank Private Bank Rs 1 crore 10.25%*onwards 0.75% + GST USA, UK, Canada IDFC Bank Private Bank Rs 85 lakhs 10.50%*onwards 1% + GST USA, UK, Canada,Australia, Germany, Ireland& many others Ascent NBFC 100% cost ofeducation 3.79%*onwards – USA Auxilo NBFC Rs 40 lakhs 11.50%*onwards 1% + GST USA, UK, Canada,Australia, Germany, Ireland& many others Avanse NBFC Rs 75 lakhs 11.50%*onwards 1% + GST USA, UK, Canada,Australia, Germany, Ireland& many others Earnest NBFC 100% cost ofeducation 3.74%*onwards – USA HDFC Credila NBFC Rs 75 lakhs 10.50%*onwards 1% + GST USA, UK, Canada,Australia, Germany, Ireland& many others Incred NBFC Rs 60 lakhs 11.75%*onwards 1% + GST USA, UK, Canada,Australia, Germany, Ireland& many others MPower Financing NBFC $100k 12.99%* 5% + GST USA, UK, Canada Prodigy Finance NBFC 100% cost of education11.50%*onwards $1005% + GST USA, UK, Canada,Australia, Germany Sallie Mae US Public Bank 100% cost ofeducation 3.49%*onwards – USA Tata Capital NBFC Rs 75 lakhs 11.50%*onwards – USA, UK, Canada,Australia, Germany, Ireland& many others Student Loans Without Collateral: Eligibility To apply for a non-collateral study abroad loan, the lenders mandate that you meet certain eligibility criteria for seamless processing. Let’s discuss it in detail, so that you ace all those requirements! Education Loans without Collateral: Documents Required Your non-collateral study abroad loan is within reach with the help of the following documents. Let’s jot them down together, so that you add them to your bag or your drive and submit to your lender at the earliest! For you (the applicant) For the cosigner If the cosigner runs their own business, they’d be required to submit the following additions documents to show their income. If the cosigner is salaried, they’d be required to submit the following additions documents to show their income. How to get a Student Loan for Abroad Studies Without Collateral? Let’s understand the application process of applying for a study abroad non-collateral education loan better! Step I: Shortlist the lender for securing your non-collateral loan for studying abroad After thorough research, choose the lender best suitable for you to secure your unsecured study abroad loan. You can reach out to these lenders online through their official website or physically by visiting a branch. You will be required to fill an application form and provide accurate and complete information. Ensure inquiring about the interest rates, any hidden costs, repayment term and other information in the loan agreement. Step II: Sharing your documents Once you’re assured of all the terms and conditions of your chosen lender, and are ready to proceed, the next step is to submit the required documents for your non-collateral education loan. These documents may include academic records, admission letter, financial statements, and any other documents requested by the lender. Step III: Credit check & verification After successfully submitting your documents with the lender for your education loan for studyingabroad without