Abroad Education Loan Without Collateral

Many prospective international students dream of studying abroad but may lack the ability to provide collateral for an education loan. However, they don't give up on their aspirations and turn to lenders who offer education loans without requiring collateral. Various financial institutions, including private banks and NBFCs, extend non collateral education loans for studying abroad. In this article, we will provide you with a comprehensive overview of this option.

Eligibility for abroad education loan without collateral

Eligibility for non collateral education loans varies among different lenders, but there are common factors to consider:

• Co-Applicant Requirements: Your co-applicant should possess a healthy credit score (typically referred to as CIBIL), meet specific income criteria (usually ranging from 30,000 INR to 40,000 INR without financial commitments), and meet the lender's specified criteria.
• Test Results: Your performance in English proficiency and standardized exams like IELTS, TOEFL, GRE, SAT, and others should meet or exceed the benchmarks set by your lender, as this plays a crucial role in loan approval.
• Academic Performance: non collateral education loans place a significant emphasis on your academic track record, using your past achievements to predict your potential future earnings. This is a critical factor since collateral is not required.
• Country, University, and Course Selection: It's essential to ensure that the country, university, or college, and the course you've chosen align with the lender's approved list for non collateral education loans for studying abroad.
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Lenders that provide education loan without collateral

Non collateral education loan options are available not only from banks but also from NBFCs and international lenders. Here is a list of some such lenders, along with their maximum loan amounts and interest rates:

• Public Banks 
• • • SBI - Maximum loan amount of up to 7.5 Lakh INR with an interest range between 10.65% - 11.50%.
    • UBI - Maximum loan amount of up to 40 Lakh INR with an interest range between 9.80% - 11.30%.

• Private Banks

• Axis Bank - Maximum loan amount of up to 50 Lakh INR with an interest range between 11.00% - 11.50%. 
• ICICI Bank - Maximum loan amount of up to 50 Lakh INR with an interest range between 10.85% - 12.50%.
• IDFC FIRST Bank - Maximum loan amount of up to 50 Lakh INR with an interest range between 11.50% - 13.25%.

• NBFCs

• HDFC Credila - Maximum loan amount of up to 65 Lakh INR with an interest range between 11.25% - 13.00%.
• Avanse - Maximum loan amount of up to 75 Lakh INR with an interest range between 12.50% - 13.50%.
• Auxilo - Maximum loan amount of up to 65 Lakh INR with an interest range between 11.25% - 14.00%.
• InCred -Maximum loan amount of up to 60 Lakh INR with an interest range between 12.00% - 14.00%. 

• International Lenders

• MPOWER Financing - Maximum loan amount of up to 100,000 USD with an interest of 12.99% for graduate programs and 13.99% for undergraduate programs. 
• Prodigy Finance - It can cover up to 100% cost of your abroad education with an interest rate that ranges between 12.00% - 14.00%. 

Required documents for education loan without collateral

When applying for a non collateral educatihttps://theamberpost.com/writeon loan, you will need to provide a set of documents. Here's a comprehensive list of the typical documents required for both the applicant and co-applicant:

Applicant Documents

• Passport
• Loan application form
• Address proof (e.g., recent utility bills)
• Statement of expenses (indicating the entire cost of education)
• Proof of admission (conditional offer of admission)
• Past academic records (10th, 12th, and undergraduate mark sheets, test scores for entrance exams like GRE, TOEFL, IELTS, etc.)
• Identity proof (PAN Card, Passport, Voter ID card)
• Loan account statement for the last year, if you have previous loans from any lender
• Passport-size photographs

Co-Applicant Documents

• Identity proof
• Address proof
• Income proof (varies based on employment type, self-employed or salaried)

For self-employed co-applicants

• Last 2 years of IT returns
• TDS Certificate
• Business address proof
• Bank account statement for the last 6 months
• Certificate of Qualification

For salaried co-applicants

• Salary slips for the last 3 months
• Copy of Form 16 for the last 2 years or copy of IT Returns for the last 2 years
• Bank account statement for the last 6 months
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Process to apply for education loan without collateral 

To apply for a non collateral education loan, follow these steps:

• Check Eligibility: Start by assessing your eligibility for a study abroad loan without collateral, considering factors like your academic background, admission to a recognized foreign institution, and financial circumstances.
• Apply and Seek Assistance: Reach out to a GyanDhan Education Loan Counselor (ELC) who will assist you through the application process and provide you with a personalized checklist. After submitting your application, the system will connect you with two lenders tailored to your situation.
• Document Submission and Verification: Gather and submit the required documents, including your academic and financial records. Lenders will assess your application by reviewing your admission details, financial information, and more.
• Loan Approval: Once the lender approves your application, you will receive notice of the approved loan amount. If the terms are satisfactory, you can proceed by signing the agreement, and the funds you require will be disbursed.
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Benefits of abroad education loan without collateral

Benefits of choosing a non collateral education loan for overseas studies include streamlined paperwork, institutional flexibility, the option of a co-applicant, and comprehensive coverage of study expenses.

• Simplified Documentation: Non collateral loans involve simpler paperwork compared to secured alternatives. You'll need to provide manageable documents.
• Institution Flexibility: While many lenders have specific lists of universities, colleges, or courses they support, several now offer non collateral education loans with a wider range of options, allowing you to study where you prefer.
• Co-Applicant Option: If you have a suitable co-applicant willing to assist, you can avoid the need for collateral. Your co-applicant should have a strong credit history matching the lender's requirements, serving as an alternative to collateral.
• Comprehensive Expense Coverage: These loans often provide substantial amounts to cover a significant portion of your study expenses abroad. If your application profile is strong and your loan falls within the lender's maximum limit, most of your costs are accounted for.

Opting for a non collateral education loan for studying abroad offers several advantages, including simplified paperwork, the freedom to choose your institution, the option of a co-applicant in lieu of collateral, and extensive coverage of study expenses. If you have questions or uncertainties, don't hesitate to contact GyanDhan, as they are available to support you throughout the loan process and help you find the ideal lender for your unique circumstances. Simply check your loan eligibility with them, and they will guide you through each step of the process.