Education Loan without Collateral

5 minute read
Education Loan without Collateral

Thousands of students venture abroad for quality education. Education loans are the most common way in which the enormous costs that come with studying abroad are covered. Seeing the ever-growing need, organisations are trying to support students from all backgrounds. Education loan without collateral or unsecured education loans are ways in which students can avail loans if they do not have assets to offer as collateral. This is beneficial for those who have offers from reputed universities from around the world but are stuck in arranging funds for their education.

Education Loan without Collateral: Meaning

Just like any normal loan, banks that give education loans also require some collateral to be put in as cover against the amount of the loan. In case, the repayment stops midway, this collateral can be used by companies to recover the loan amount. Collateral can be anything from an asset such as land or house to insurance corpus or time deposits like fixed deposit. Education loans that do not require any such collateral are termed as education loans without collateral or unsecured education loans. Typically, such loans carry a higher interest or rigid repayment mechanism.

What if You Don’t Have any Collateral or Security? 

There are plenty of education loans available without collateral as for some it is difficult to have such securities. Many popular finances of the country offer education loans without collateral. Listed below are the important points you must keep in mind while seeking the same- 

  • You may not pledge to any government bank for collateral if you are availing loan up to INR 4 Lakh 
  • As per RBI, all the banks of the country have provision to grant education loan without collateral up to INR 7.5 Lakh when all the criteria are met.
  • For those seeking a loan more than INR 7.5 lakh, they can opt private or NBFCs as they provide a loan upto INR 50 lakh without collateral

Education Loan without Collateral: Process

  • Submission of Application Form: This can be submitted online or at the office location.
  • General documents
  1. Passport Photos
  2. Residence Proof 
  3. Photo Identity Card
  • Academic Qualification Certificates:
  1. 10th and 12th Marksheets
  2. Graduation Marksheets (if applicable)
  • Proof of Admission: This is the official offer of admission stating that this particular student has been offered admission at the university. It also lists the deposit amount to be submitted to block the seat and other conditions on which the offer has been given.
  • Last 8 months bank statement of co-applicant
  • Income proof of co-applicant
  • Collateral details (if available) 

Options for Securing Education Loan without Collateral

Here are some of the best options for education loan without collateral in 2021-


Incred Financial Services is a non-banking financial corporation registered with the Reserve Bank of India. It gives an education loan without collateral of up to INR 40 lakhs. This includes a variety of fees and other expenses. Incred covers over 700 universities in the USA, Canada, France, Netherlands, Germany, Singapore, Ireland, and Australia.


Study abroad loans offered at Auxilo are tailor-made according to the needs of the applicant. It also offers unsecured education loans which are evaluated according to the talent and aptitude of the individual. Factors considered are the university of admission, previous record, test scores amongst others. There is no condition of higher limit of loan and a number of expense heads are covered by the company.

HDFC Credila

Education loan without collateral of fewer than 20 lakhs can be availed through HDFC Credila, an HDFC Ltd company which was among the first companies to offer education loans in India. It also provides 100% loan cover with provision of no margin money, 10-year repayment and a host of other facilities.

KC Mahindra Scholarships for Postgraduate Studies Abroad

This is a competitive scholarship scheme for prospective postgraduate students run by the K. C. Mahindra Education Trust. As part of the award, a handful of deserving applicants who have been accepted to reputable universities abroad are selected for the interest-free loan scholarships. 


Gyandhan is an education-centered platform which serves as a marketplace for students and relevant lenders. It has partnered with a large number of financial institutions. For students looking for an education loan without collateral, Gyandhan helps in evaluation of schemes in terms of interest rates charges, repayment structure, margin money, hidden fees etc. It does not charge students for any of its services.


An education-focused non-banking financial company, Avanse offers educational loans without collateral for studies in over 40 countries and 100 universities. It affords students with 100% tuition fee coverage, complete living expenses cover and partial travel expenses cover. Such loans are subject to a high degree of scrutiny before approval.

Prodigy Finance

Started 11 years ago, Prodigy Finance is an international education-financing company which provides student loans for international postgraduate education. It is a unique company that specifically focuses on education loans without collateral. Rather, it takes into account the offer of admission and future earning potential of the candidate to evaluate loan amount.

Punjab National Bank (PNB) Pratibha Education Loan

For the merit students willing to pursue higher education in elite institutes of India, the PNB bank offers Pratibha scheme. As a popular education loan without collateral, it offers assistance upto 4 lakh for the ones willing to pursue business, engineering, medical or other courses. Students shall have a parent as a co-applicant to secure the loan and must repay it within the tenure of 15 years. 

SBI Loan for Vocational Education and Training

To the students who aspire to set up a career in the vocational field and are eager to pursue vocational courses, this can be the best scheme for them. They can avail loan of INR 50,000 if the duration of the course is less than 6 months if the course lasts for a duration of one year or more, the amount goes up to 1 lakh. Under the scheme, there is no process charging for The lone and parents can act as a co-borrower. 

Axis Bank Education Loan

For the students who are exploring education loan without collateral to study abroad, this can be the best option for them. Without any collateral they can seek a loan of INR 400000 without any margin being applicable. Applicants must know that, in this scheme, collateral requirement is optional and subjective and will be proceeded on if there is no job security for repayment capacity.

Here is a guide on Loans to Study Abroad.

An education loan without collateral is an innovative 21st-century technique that is helping thousands of students in achieving their dreams. But arranging funding is still a back-breaking task. Leverage Edu experts have always lent a helping hand to students who are in need of funding or loans, you can opt for our Value Added Services so that nothing comes between you and your dreams.

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  1. right now! im confused about the loan and the scholarship thing .please do help me out in the process…..
    and help me out to reach my dream country!!!!

  1. right now! im confused about the loan and the scholarship thing .please do help me out in the process…..
    and help me out to reach my dream country!!!!

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