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For pursuing higher education abroad, pledging assets like property or fixed deposits as collateral may not be feasible. Fortunately, several banks are giving education loans without collateral, making quality education accessible to a broader audience.
This blog explores the list of banks giving education loans without collateral, their offerings, eligibility criteria, and key considerations to help you make an informed decision.
This Blog Includes:
- Top Banks Giving Education Loan Without Collateral
- List of Public Sector Banks Offering Education Loans Without Collateral
- List of Top Private Banks for Unsecured Education Loans
- List of Non-Banking Financial Companies (NBFCs) Offering Collateral-Free Loans
- Eligibility Criteria for Education Loans Without Collateral
- How to Apply for an Unsecured Education Loan
- Key Considerations Before Taking an Unsecured Education Loan
- FAQs
Top Banks Giving Education Loan Without Collateral
Many public, private banks, and non-banking financial companies (NBFCs) are offering education loans without collateral to support studies both in India and abroad. Below is a curated list of banks giving education loans without collateral in India to help you choose the best option for your academic journey.
| Bank Name | Maximum Loan Amount (Without Collateral) | Interest Rates (p.a.) |
| State Bank of India (SBI) | Up to INR 7.5 lakh (CGFSEL); INR 50 lakh (Global Ed-Vantage) | Starting at 10.15% |
| Bank of Baroda | Up to INR 7.5 lakh; INR 40 lakh (premier institutes) | Starting at 10.40% |
| Union Bank of India | Up to INR 40 lakh (premier institutes) | Starting at 9.75% |
| Canara Bank | Up to INR 7.5 lakh; INR 50 lakh (Group A institutes) | Starting at 9.70% |
| Punjab National Bank (PNB) | Up to INR 7.5 lakh; INR 20 lakh (select institutes) | Starting at 9.95% |
| Bank of India | Up to INR 7.5 lakh; INR 30 lakh (top universities) | Starting at 10.00% |
| Indian Bank | Up to INR 7.5 lakh; INR 25 lakh (premier institutes) | Starting at 9.80% |
| IDBI Bank | Up to INR 20 lakh (unsecured, select institutes) | Starting at 10.25% |
| ICICI Bank | Up to INR 1 crore (premier institutes) | Starting at 10.50% |
| Axis Bank | Up to INR 40 lakh; INR 75 lakh (PRIME ABROAD) | Starting at 11.50% |
| HDFC Bank (via Credila) | Up to INR 20 lakh; higher for select courses | Starting at 9.00% |
| IDFC FIRST Bank | Up to INR 65 lakh (select institutes) | Starting at 10.50% |
| Kotak Mahindra Bank | Up to INR 40 lakh (unsecured, select courses) | Starting at 11.00% |
| Yes Bank | Up to INR 50 lakh (premier universities) | Starting at 10.75% |
| Federal Bank | Up to INR 25 lakh (unsecured, select courses) | Starting at 10.20% |
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Now that you have an overview of the top 15 banks giving education loans in India without collateral for studying abroad, let’s explore each of them in detail based on their offerings in the banking sector.
List of Public Sector Banks Offering Education Loans Without Collateral
Public sector banks in India are known for their student-friendly loan schemes, often backed by government subsidies. These banks are giving education loans without collateral up to a certain limit, making them a reliable choice for students pursuing higher education in India or abroad.
State Bank of India (SBI)
SBI is a leading public sector bank offering education loan to study abroad under schemes like the SBI Global Ed-Vantage for overseas studies. For select premier institutions, SBI provides collateral-free loans, ensuring students can focus on their academic goals without financial stress.
- Maximum Loan Amount: Up to INR 7.5 lakh without collateral; up to INR 50 lakh for premier institutions under specific schemes.
- Interest Rates: Starting at 8.15% p.a., with concessions for female students.
- Repayment Tenure: Up to 15 years, including a moratorium period (course duration + 1 year).
- Eligibility: Admission to recognised institutions; co-applicant (parent/guardian) required.
Bank of Baroda (BoB)
Bank of Baroda’s Baroda Scholar scheme supports students pursuing professional and technical courses. The bank gives an education loan without collateral for premier institutions, with flexible repayment terms to ease the financial burden.
- Maximum Loan Amount: Up to INR 40 lakh without collateral for premier institutes; INR 7.5 lakh for others.
- Interest Rates: Starting at 8.55% p.a., varying by course and institution.
- Repayment Tenure: Up to 15 years, including moratorium.
- Eligibility: Confirmed admission; co-applicant with stable income required.
Union Bank of India (UBI)
Union Bank of India is committed to supporting educational aspirations with its unsecured loans to study abroad schemes. Its efficient processing and competitive rates make it a popular choice for students.
- Maximum Loan Amount: Up to INR 40 lakh without collateral for abroad studies.
- Interest Rates: Starting at 9.75% p.a., subject to borrower profile.
- Repayment Tenure: Up to 15 years, including moratorium.
- Eligibility: Admission to recognised universities; co-applicant with a good credit score.
List of Top Private Banks for Unsecured Education Loans
Private banks often offer higher loan amounts without collateral, catering to students aiming for global education. These banks are giving education loans without collateral with quick disbursal and flexible terms, though interest rates may be slightly higher than public banks. Here is the list:
ICICI Bank
ICICI Bank’s education loan scheme for premier institutions is tailored for students pursuing higher studies in India or abroad. Its instant sanction feature simplifies the application process.
- Maximum Loan Amount: Up to INR 1 crore without collateral for select universities.
- Interest Rates: 10.5% to June 2025-05-08
- Repayment Tenure: Up to 15 years, including moratorium.
- Eligibility: Admission to recognised institutions; strong co-applicant credit profile.
Axis Bank
Axis Bank offers unsecured education loans under schemes like PRIME ABROAD, designed for full-time courses at top global universities. The bank’s swift processing makes it a compelling choice.
- Maximum Loan Amount: Up to INR 75 lakh for prime universities.
- Interest Rates: 10.50% to 11.25% p.a.
- Repayment Tenure: Up to 15 years.
- Eligibility: Admission to listed universities; co-applicant with stable income.
HDFC Bank
HDFC Bank provides education loans with flexible repayment options, covering both domestic and international studies. Its collateral-free loans are ideal for students without assets.
- Maximum Loan Amount: Up to INR 20 lakh without collateral; higher limits with case-by-case approval.
- Interest Rates: Starting at 9.55% p.a.
- Repayment Tenure: Up to 15 years.
- Eligibility: Confirmed admission; co-applicant with good CIBIL score.
List of Non-Banking Financial Companies (NBFCs) Offering Collateral-Free Loans
NBFCs like Avanse and HDFC Credila specialise in education loans, often providing higher loan amounts without collateral. These institutions are giving education loans without collateral, offering student-friendly terms and faster processing compared to traditional banks.
Avanse Financial Services
Avanse offers customised education loans for students pursuing higher education abroad. Its flexible repayment options make it a preferred choice for many.
- Maximum Loan Amount: Up to INR 75 lakh without collateral.
- Interest Rates: Starting at 11% p.a.
- Repayment Tenure: Up to 15 years.
- Eligibility: Admission to recognised institutions; co-applicant required.
HDFC Credila
HDFC Credila is a leading NBFC focused on education loans, offering unsecured loans for top universities worldwide. Its hassle-free process ensures quick disbursal.
- Maximum Loan Amount: Up to INR 65 lakh without collateral.
- Interest Rates: Starting at 10.25% p.a.
- Repayment Tenure: Up to 15 years.
- Eligibility: Strong academic profile; co-applicant with stable income.
Eligibility Criteria for Education Loans Without Collateral
Securing an education loan without collateral requires meeting specific education loan eligibility criteria that are set by lenders. Banks giving education loans without collateral evaluate the applicant’s academic performance, the reputation of the institution, and the co-applicant’s financial stability to ensure repayment capability.
- Academic Performance: Minimum 60% marks in previous exams; preference for higher scores.
- Institution Reputation: Admission to recognised institutions (e.g., UGC/AICTE-approved or top-ranked global universities).
- Co-Applicant: Parent or guardian with a stable income and good CIBIL score (typically 700+).
- Course Selection: Preference for job-oriented courses like engineering, medicine, or management with strong career prospects.
- Documentation: University offer letter, academic records, co-applicant’s income proof, KYC documents, and loan application form.
How to Apply for an Unsecured Education Loan
Applying for an education loan without collateral is straightforward, with most banks offering online and offline options for the requirements for education loans. Following a step-by-step approach ensures a smooth application process.
- Research Lenders: Compare loan amounts, interest rates, and eligibility criteria from multiple banks and NBFCs.
- Check Eligibility: Confirm you meet the academic and co-applicant requirements.
- Gather Documents: Prepare academic records, admission letter, co-applicant’s income proof, and KYC documents required for education loan.
- Apply Online or Offline: Submit the application via the bank’s website, mobile app, or branch.
- Loan Sanction: Receive an instant sanction letter (for select banks) or approval within 7–25 days.
- Disbursal: Funds are transferred directly to the institution or vendor as per the fee schedule.
Also Read:
- How to Reduce Education Loan Interest Rates? Tips to Lower EMIs
- Study Abroad Education Loans with Lowest Processing Fees
Key Considerations Before Taking an Unsecured Education Loan
While unsecured education loans offer flexibility, careful planning is essential to avoid financial strain. Consider the following factors to make an informed decision.
- Interest Rates: Unsecured loans have slightly higher rates (9–12% p.a.) due to the absence of collateral.
- Repayment Tenure: Opt for a tenure that balances EMI affordability with total interest paid.
- Moratorium Period: Most lenders offer a grace period (course duration + 6–12 months), but simple interest may accrue.
- Tax Benefits: Interest paid on education loans is eligible for tax deduction under Section 80E of the Income Tax Act, 1961.
- Loan Coverage: Ensure the loan covers tuition, living expenses, and ancillary costs like travel or equipment.
Education loans without collateral empower students to pursue their academic dreams without the burden of pledging assets. The list of banks giving education loans without collateral includes trusted names like SBI, Bank of Baroda, ICICI Bank, Axis Bank, and NBFCs like Avanse and HDFC Credila. By understanding eligibility criteria, comparing loan terms, and planning repayment, you can secure the right loan to fund your education.
FAQs
An education loan without collateral is an unsecured loan that does not require borrowers to pledge assets like property or fixed deposits. It covers tuition, living expenses, and other study-related costs, with approval based on academic merit and co-applicant creditworthiness.
Private banks giving education loans without collateral are ICICI Bank (up to INR 1 crore) and Axis Bank (up to INR 75 lakh) offer high loan amounts for premier institutions. Public banks like SBI and Bank of Baroda provide up to INR 50 lakh and INR 40 lakh, respectively, for select universities.
Yes, unsecured loans typically have slightly higher interest rates (9–12% p.a.) compared to secured education loans due to the absence of collateral. However, public sector banks like SBI (8.15% onwards) offer competitive rates.
Yes, interest paid on education loans, whether secured or unsecured, is eligible for tax deduction under Section 80E of the Income Tax Act, 1961, with no upper limit for the deduction amount.
Approval times vary by lender. Private banks like ICICI and Axis often provide instant sanction letters for eligible applicants, while public banks like SBI may take 7–25 days for processing.
To apply for an education loan without collateral, you need an admission letter, academic records, KYC documents (Aadhaar, PAN), co-applicant’s income proof (salary slips, ITR), and a completed loan application form.
Yes, banks like SBI, Bank of Baroda, and HDFC Bank offer collateral-free loans up to INR 7.5 lakh for domestic studies. Higher amounts may be available for premier institutions like IITs and IIMs.
Yes, most lenders require a co-applicant (parent or guardian) with a stable income and a good CIBIL score (typically 700+) to ensure loan repayment.
If you face repayment issues, contact your lender to discuss restructuring options or an extended repayment plan. Defaulting may impact your and your co-applicant’s credit scores.
NBFCs like Avanse and HDFC Credila offer flexible terms and higher loan amounts (up to INR 75 lakh) with faster processing. However, their interest rates (10.25–11% p.a.) may be higher than public banks.
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