What is an Abroad Education Loan with Collateral?
An education loan with collateral security is backed by assets like property or FDs. The lender holds the collateral until the loan is repaid.
This ensures repayment assurance for lenders and benefits for applicants like:
Why Choose a Loan with Collateral for Your Education Abroad?
01 Higher Loan Amounts
With collateral loans, you can get enough money for tuition, housing, travel, and more.
02 Lower Interest Rates
Since the lender has security, they charge less interest on collateral loans.
03 Easier Repayment
You get more time to pay back the bank loan with collateral with longer.
Bank Name
Loan Amount
Interest Rate
Processing Time
Processing Fee
Upto INR 2 Crore
9.95% - 12%
7 Days
0.5 - 1%
Upto INR 2 Crore
9.95% - 13.50%
10 Days
0.75 - 1%
Upto USD 200K
10.5% - 14%
7 days
100USD+ 5%
Upto INR 1.5 Crore
10.15% - 11.15%
25 days
INR 10,000
Upto INR 1.5 Crore
9.75% - 13%
14 days
0.75%
Upto INR 1.5 Crore
10% - 13%
7 days
0.85 - 1 %
Upto INR 1.5 Crore
10.50% - 13%
7 days
1%
Upto INR 1 Crore
9.95% - 12%
7 days
0.5 - 1 %
Types of Collateral Accepted for Education Loans
Not sure what counts as collateral?
Residential or commercial property
Fixed deposits in the borrower’s or co-applicant’s name
Land owned by the borrower or co-applicant
Life insurance policies assigned to the lender
Government bonds or securities
Gold or other valuable assets
Eligibility for Education Loan with Collateral Security
Age limit for an education loan for collateral security is typically between 18 and 35 years.
Admission to a recognized university abroad for a degree or diploma is required.
Collateral value must be sufficient to cover the education loan for collateral security.
A co-applicant with a stable income is usually needed for loan approval.
Creditworthiness of the borrower or co-applicant is assessed by the lender.
frequently asked questions
What is the difference between an education loan with and without collateral?
A loan with collateral is one where you have to pledge an asset like property or a fixed deposit to get a loan. Without collateral, you don’t need to put up any assets. The lender looks at your academic profile and the course you’re going for instead.
Can I apply for an education loan without collateral if I am studying abroad?
Yes, you can. You need to meet their eligibility criteria.
How much loan can I get without collateral for studying abroad?
It actually depends on the bank and your profile. Some banks offer more than ₹50 lakhs without collateral, and in some cases, even more, especially if you’re going to a top university.