Education loan without collateral for Indian students

Posted by soujanya on January 15th, 2021

Student loans serve as a great financial aid to students who otherwise wouldn\'t have been able to pursue their education abroad. If it weren\'t for education loans, millions of students would never have made it to their dream universities. 

However, it is also a fact that not everyone will be eligible to get an abroad education loan without collateral as too many loan applications get rejected by the lenders. 

Types of an education loan:

Collateral education loan

Education loan without collateral

Education loan without collateral eligibility criteria:

The academic profile of the applicant At least a minimum of 60% is required in 10th, 12th, and degree. Also, students with more than 3 backlogs may not qualify for an unsecured education loan.

Financial co-applicant’s they can stay assured if a student fails to repay the loan amount, their financial co-applicant would pay on the student\'s behalf.

Course/Degree that an applicant wishes to pursue. Courses like UG, PG in STEM disciplines are preferred by lenders over courses like Public policy or Aviation but never Ph.D., Mbbs, Theology, tailoring, etc.

If you find yourself ineligible for an unsecured education loan, do not worry and connect with the WeMakeScholars for your education loan process.

Documents required for non collateral education loan:

• KYC documents

• 2 passport-size photographs of the applicant and co-applicants

• Bank Statement of last 6 months

• Optional – Guarantor Form

• Copy of offer letter of the Institute/university with fees schedule

• Mark sheets / passing certificates of S.S.C., H.S.C, Degree courses, entrance test

• Income proof of the guarantor or co-applicant/borrower (i.e. salary slips/ Form 16) 

Which banks give education loans without collateral for abroad:

• Public banks - Public banks like SBI, BOB, etc as per their policies can only provide up to 7.5 lakhs student loans without collateral irrespective of the course and country. But for some top-tier institutes in India, you can avail up to 40 lakhs of unsecured education loans from SBI. 

• Private banks - Private banks can offer up to 40 lakhs of education loans for abroad studies without collateral.

• NBFCs - A Non-Banking Financial Company (NBFC) is also an option for Indian students as there are four NBFCs in India that provide a student loan without collateral. 

• Foreign lenders Foreign lenders like Leap Finance, Prodigy Finance, etc can cover up to 80% of your total expenses.

Read more: https://www.wemakescholars.com/blog/a-guide-to-education-loan-without-collateral