What Is an Education Loan Without Collateral?
An education loan without collateral is a student loan that doesn’t require you to pledge any assets like property or fixed deposits.
The bank approves the loan based on your academic profile, course, university, and future earning potential.
They are different from secured loans, which require collateral and a co-applicant.
Best for students from middle-income families who may not have access to assets.
Available from select private banks, NBFCs, and international lenders.
Why Choose an Education Loan Without Collateral?
A non-collateral loan makes it possible to study abroad without putting assets or family finances at risk.
01 No Need for Property or Assets
You can get the loan without pledging any collateral. No property, no fixed deposits.
02 Faster Loan Approval
With fewer checks and documents, the process is quicker and less complicated.
03 No Co-Applicant Required
Many lenders offer an education loan without collateral and co applicant.
Why Choose an Education Loan Without Collateral?
A non-collateral loan makes it possible to study abroad without putting assets or family finances at risk.
A collateral-based education loan for studying abroad requires you to pledge assets like property or fixed deposits as security.
You can get a foreign education loan without collateral if you want to study in the USA, Canada, UK & more.
You don’t need security or property required.
It’s a student loan without collateral backed by a co-applicant’s financial profile.
Your co-applicant’s income and credit score can improve approval chances.
Some banks offer zero-interest loans for high-achieving students.
Available for select universities and programs.
Banks & Lenders Offering Education Loans Without Collateral
Wondering which bank gives education loan without collateral for abroad studies? Here are some top lenders you can check out.
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 %
Eligibility Criteria for Collateral-Free Education Loans
How to get education loan for abroad studies without collateral? Here are the key eligibility factors:
Age & Academic Qualifications
You need to be within the age range of 18-35.
Co-Applicant Requirement
If your profile is not strong enough, some lenders may ask for a co-applicant.
Credit Score & Financial Stability
Your or your co-applicant’s credit score and income will determine whether the loan is approved.
Eligible Countries & Institutions
You get loans for top-ranked universities in countries like the USA, UK, Canada, and more.
Minimal Documentation & Quick Processing
Collateral-free loans usually involve less paperwork and quicker approvals.
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.