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NBFCs Education Loan Without Collateral: Pursuing higher education often requires significant financial investment, but not everyone has assets to pledge as security. Non-Banking Financial Companies (NBFCs) offer a viable solution by providing education loans without collateral, making quality education accessible.
This blog explores all about NBFCs giving education loans without collateral, how NBFCs facilitate these loans, their benefits, eligibility criteria, and top providers to help you make informed financial decisions.
This Blog Includes:
- Why Choose NBFC Education Loans Without Collateral?
- Top NBFCs Giving Education Loan Without Collateral
- Eligibility Criteria for NBFC Education Loan Without Collateral
- Things to Consider with NBFC Unsecured Loans
- How to Apply for NBFCs Unsecured Education Loan?
- FAQs on NBFCs Education Loan Without Collateral
Why Choose NBFC Education Loans Without Collateral?
Opting for NBFCs giving education loans without collateral offers distinct advantages, especially for those unable to provide assets as security. These institutions prioritise accessibility and flexibility, making them a preferred choice for funding higher education. Here are the benefits of NBFCs giving an education loan without collateral:
- No Collateral Requirement: Access loans without pledging property, fixed deposits, or other assets.
- Higher Loan Amounts: Avail up to INR 75 lakh for international studies, depending on the NBFC and course.
- Flexible Repayment Options: Choose from step-up EMIs, partial interest payments, or moratorium periods.
- Quick Processing: NBFCs often approve loans faster than banks giving education loans in India, with minimal documentation.
- Comprehensive Coverage: Loans cover tuition, living expenses, books, equipment, and travel costs.
For instance, NBFCs like Propelld offer loans up to INR 50 lakh without collateral or a co-applicant, based on academic merit and future earning potential.
Also Read:
- How to Get an Education Loan Without Collateral for Abroad Studies?
- How to Reduce Education Loan Interest Rates?
Top NBFCs Giving Education Loan Without Collateral
Several NBFCs in India specialise in unsecured loans to study abroad, each with unique offerings. The table below gives a list of top NBFCs giving education loans without collateral in India to study abroad.
| NBFC | Max Loan Amount (Unsecured) | Interest Rate | Key Advantage |
| HDFC Credila | INR 75 lakh | 10.5%–12.5% | Pre-visa disbursal, no margin money |
| Avanse | INR 75 lakh | 11%–14% | Covers niche courses, fast-track loans |
| Auxilo | INR 60 lakh | 11.5%–15% | Personalised loan solutions |
| InCred | INR 60 lakh | 11%–14.5% | Quick approvals, broad coverage |
| Propelld | INR 50 lakh | 12%–15% | No co-applicant, future income focus |
HDFC Credila Education Loan Without Collateral
HDFC Credila is a pioneer in education loans, offering tailored solutions for students pursuing higher education in India and abroad. Here are the details of this NBFC’s education loan without collateral.
- Amount: Up to INR 75 lakh without collateral.
- Interest Rate: Starts at 10.5%, depending on the course and applicant profile.
- Repayment Tenure: Up to 15 years, with flexible EMI options.
- Coverage: Tuition, accommodation, travel, and other study-related expenses.
Eligibility for HDFC Credila Education Loan Without Collateral
- Admission to a recognised institution.
- Co-applicant with stable income and good credit score.
- Strong academic record (minimum 60% in previous exams).
HDFC Credila’s extensive network and quick disbursal make it a top choice for international studies.
Avanse Financial Services
Avanse Financial Services is top among NBFCs, giving education loans without collateral. It focuses on student-centric financing, offering unsecured loans with competitive terms for global and domestic education. Here are the Avanse loan details:
- Amount: Up to INR 75 lakh without collateral.
- Interest Rate: 11%–14%, based on loan amount and university ranking.
- Repayment Tenure: Up to 15 years, with moratorium during study period.
- Coverage: 100% of education costs, including living expenses.
Eligibility for Avanse Education Loan Without Collateral
- Age: 18–35 years.
- Admission to accredited universities (STEM, management programs preferred).
- Co-applicant with verifiable income.
Avanse’s no-margin-money policy means borrowers may not need to contribute upfront funds, easing financial strain.
Auxilo Finserve Unsecured Education Loans
Auxilo Finserve is among the best NBFC giving education loans without collateral. It provides customised unsecured education loans in India to study abroad, emphasising accessibility for students aiming for top-tier institutions. Here are the Auxilo education loan details:
- Amount: Up to INR 60 lakh without collateral.
- Interest Rate: 11.5%–15%, depending on course and credit profile.
- Repayment Tenure: Up to 12 years, with flexible repayment plans.
- Coverage: Tuition, hostel fees, books, and travel expenses.
Eligibility for Auxilo Finserve Education Loan Without Collateral
- Indian residency status.
- Strong academic performance (e.g., decent IELTS/TOEFL/GRE scores).
- Co-applicant with a CIBIL score above 700.
Auxilo’s hyper-personalised loan solutions cater to niche courses, making it ideal for specialised programs.
InCred Finance’s Education Loan Without Collateral
InCred is the best NBFC giving education loans without collateral with a focus on quick approvals and comprehensive coverage for higher education. Here are the loan details:
- Amount: Up to INR 60 lakh without collateral.
- Interest Rate: 11%–14.5%, based on applicant and co-applicant profiles.
- Repayment Tenure: Up to 15 years, with step-up EMI options.
- Coverage: Tuition, equipment, and living costs.
Eligibility for InCred Education Loan Without Collateral
- Admission to recognised institutions.
- Co-applicant with steady income (e.g., salaried or self-employed).
- Minimum 60% in previous academic qualifications.
InCred’s streamlined online application process ensures faster approvals, often within days.
Unsecured Education Loan with Propelld
Propelld stands out for its innovative approach, offering loans without collateral or co-applicants for eligible candidates. Here are the loan details:
- Amount: Up to INR 50 lakh without collateral or co-applicant.
- Interest Rate: 12%–15%, depending on academic and financial profile.
- Repayment Tenure: Up to 10 years, with flexible moratorium periods.
- Coverage: Tuition, accommodation, and other education-related expenses.
- Eligibility for HDFC Credila Education Loan Without Collateral
- Admission to high-ranked institutions (e.g., top 500 global universities).
- Strong academic record or work experience.
- Future earning potential assessed for approval.
Propelld’s “Study Now, Pay Later” model is ideal for students with limited financial backing.
Eligibility Criteria for NBFC Education Loan Without Collateral
To secure an education loan without collateral from NBFCs, applicants must meet specific education loan eligibility criteria. Here are the NBFC education loans without collateral requirements that ensure the lender’s risk is mitigated while making loans accessible.
General Eligibility for NBFC Unsecured Education Loan
- Age: 18–35 years.
- Citizenship: Indian resident or NRI with valid documentation.
- Academic Record: Minimum 60% in previous exams or strong scores in tests like IELTS, TOEFL, or GRE.
- Admission: Confirmed admission to a recognised institution, preferably in STEM, management, or high-demand fields.
- Co-Applicant: Typically required with a stable income and CIBIL score above 700 (some NBFCs like Propelld may waive this).
Documents Required for NBFC Education Loan Without Collateral
Here are some document requirements for education loans from NBFCs:
- Proof of admission (offer letter from the university).
- Academic certificates and mark sheets.
- KYC documents (Aadhaar, PAN, passport).
- Co-applicant’s income proof (salary slips, ITR, or bank statements).
- Course fee structure and estimated living expenses.
NBFCs assess the future earning potential of the course and the co-applicant’s creditworthiness to approve unsecured loans.
Things to Consider with NBFC Unsecured Loans
While NBFCs give education loans without collateral,l offer flexibility, careful planning is essential to avoid financial strain. Understand these key considerations:
- Interest Rates: Compare rates (10.5%–15%) to ensure affordability, as unsecured loans are costlier.
- Repayment Terms: Opt for plans aligning with future income, such as step-up EMIs or moratorium periods.
- Processing Fees: Typically 0.5%–2% of the loan amount; confirm upfront costs.
- Course and Institution: Choose programs with strong employability to justify the loan.
- RBI Compliance: Verify the NBFC’s registration with the RBI for safety.
Use EMI calculators on NBFC websites to estimate monthly repayments and plan your finances effectively.
Also Read:
How to Apply for NBFCs Unsecured Education Loan?
Applying for an education loan without collateral is straightforward with NBFCs, thanks to their streamlined processes. Follow these application steps in order to apply for NBFCs unsecured education loan to study abroad:
- Research Lenders: Compare NBFCs like HDFC Credila, Avanse, and Propelld based on loan terms.
- Check Eligibility: Use online tools on NBFC websites to assess eligibility.
- Gather Documents: Collect admission proof, academic records, and co-applicant details.
- Apply Online: Submit the application via the NBFC’s portal or visit a branch.
- Loan Sanction: Await approval (typically within days) and review terms.
- Disbursal: Funds are disbursed directly to the institution or the student’s account.
Most NBFCs offer online applications, reducing paperwork and processing time.
NBFCs giving education loans without collateral provide a lifeline for students aspiring to pursue higher education without the burden of pledging assets. With flexible terms, quick processing, and comprehensive coverage, institutions like HDFC Credila, Avanse, Auxilo, InCred, and Propelld empower students to achieve their academic goals.
FAQs on NBFCs Education Loan Without Collateral
Yes, NBFCs in India do provide education loans. They are a popular alternative to traditional banks, especially for students seeking faster processing, flexible repayment plans, and loans for a wider range of courses or institutions. Leading NBFCs such as Avanse, InCred, Auxilo, and Propelld offer both secured and unsecured education loans.
NBFCs are RBI-regulated institutions providing financial services like loans without a banking license. NBFCs give education loans without collateral for up to INR 75 lakh, covering tuition, living expenses, and more, based on academic merit and co-applicant creditworthiness, without requiring assets as security.
The Leading NBFCs giving education loans without collateral in India include HDFC Credila (up to INR 75 lakh), Avanse Financial Services (up to INR 75 lakh), Auxilo Finserve (up to INR 60 lakh), InCred Finance (up to INR 60 lakh), and Propelld (up to INR 50 lakh).
Applicants need confirmed admission to a recognised institution, a strong academic record (minimum 60% in previous exams), and typically a co-applicant with a CIBIL score above 700. Some NBFCs, like Propelld, may waive the co-applicant requirement, focusing on future earning potential.
NBFCs offer education loans without collateral with faster processing, higher loan amounts (up to INR 1 crore), and flexible course coverage compared to banks, which often require collateral for loans above INR 7.5 lakh.
The expenses covered in education loan schemes offered by NBFCs without collateral typically include tuition fees, accommodation, travel costs, books, equipment, and other study-related expenses.
Yes, NBFCs giving education loans without collateral, such as HDFC Credila and Avanse, offer loans up to INR 75 lakh for international studies. They cover programs at accredited universities, especially in STEM and management, with repayment tenures up to 15 years.
Interest rates for NBFCs education loans without collateral typically range from 10.5% to 15%, depending on the loan amount, course, institution, and co-applicant’s credit profile.
NBFCs process unsecured education loans faster than banks, often within a few days. For example, InCred and Auxilo use streamlined online applications to ensure quick approvals, provided all documents, like admission proof and KYC, are submitted.
Most NBFCs, such as HDFC Credila and Avanse, require a co-applicant with stable income and a good credit score (above 700). However, some NBFCs giving education loans without collateral, like Propelld, may approve loans without a co-applicant based on academic merit and future employability.
NBFCs may charge processing fees (0.5%–2% of the loan amount), documentation fees, or prepayment penalties. Always review the terms before applying for NBFCs education loan without collateral to understand upfront costs and avoid surprises.
Yes, HDFC Credila is a registered NBFC (Non-Banking Financial Company) that specializes in education financing. Established in 2006, it was India’s first NBFC focused solely on providing education loans.
Yes, students in India can secure an education loan without pledging any collateral, especially when admitted to prestigious institutions. Banks and NBFCs assess the applicant’s academic background, entrance exam scores, and the reputation of the university before approving such loans.
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