A large number of studies abroad aspirants from India are choosing to apply for an overseas education loan to fund their international degree in countries like the UK, USA, Australia, New Zealand and more. However, some students often find it difficult to arrange for collateral security to pledge against the education loan amount.
In this blog, we are going to discuss five such schemes that do not require any type of collateral to secure an overseas education loan. Financial lenders in India includes private banks, government banks, NBFCs and international lenders that offer such schemes. So, let us discuss those further!
Overseas Education Loan Schemes without Collateral
In this section, we have listed below the types of overseas education loan schemes that are offered without collateral security:
- Axis Bank Education Loan
Axis Bank is the popular private bank in India that offers education loan for technical, management and professional courses. The upper limit for the education loan amount for unsecured education loan is up to Rs. 40 lakhs for prime A listing of universities and 25 lakhs for prime B listing of the universities. The Axis Bank Education Loan interest rate falls in the bracket of 11.50% to 13.75% and allows up to 10 years of duration for the education loan repayment. - HDFC Credila Education Loan
HDFC Credila is an education loan company that falls under the umbrella of the HDFC brand. The financial institution provides an overseas education loan without collateral for the meritorious students with an excellent track record throughout. It offers an overseas education loan of up to 1 Crore at an interest rate of 11% to 12.5% and the repayment tenure is up to 10 years. HDFC Credila Education Loan offers an overseas education loan without collateral to over 2100 institutions located across 35 international countries. - Avanse Education Loan
Avanse, a non-banking financial company, offers an overseas education loan across various categories including Study Abroad Education Loan for abroad studies and study in India Education Loan. The interest rate of the unsecured education loan starts at 10.75% with a processing fee between 1% to 1.5%. The margin money required for the Avanse education loan scheme is nil. - Executive Education Loan
The company falls under Deewan Housing Finance Limited (DHFL) and is popular for offering customized credit solutions to overseas aspirants as per their requirements. Avanse has tied-up with the variety of institutions and have made the loan procedure easy and smooth. - Auxilo
Auxilo is another Non-Banking Financial Corporation that offers an overseas education loan without pledging any kind of security. Students planning to pursue their higher education at the countries like USA, Germany, Canada, Ireland can apply at the Auxilo for availing an overseas education loan without any collateral. Auxilo offers an overseas education loan at an interest rate of 11.25 – 14% with a processing fee of 0.5% to 1.5%. Students get up to 15 years of duration to repay the overseas education loan. - Prodigy Finance
Prodigy Finance is an international lender company that does not require collateral to avail of an overseas education loan. The NBFC has an upper limit of US $100,000 at the rate of interest of 9.55% to 11.25%. They offer an overseas education loan to study at the international institutions provided it should be listed in Prodigy Finance’s School Listing. - Union Bank of India
The Union Bank of India, a nationalized bank provides a range of overseas education services including the unsecured education loan that doesn’t require collateral education loan. It offers up to INR 40 Lakhs of education loan in India for study abroad at the rate of interest of 10.5%. Students get up to 15 years of repayment tenure to repay the amount. The Union Bank of India is currently the only public sector bank in India that offers overseas education loan without the requirement of collateral for students pursuing studies abroad. - The State Bank of India
The State Bank of India one of the leading banks in India offers an array of the overseas education loans that are tailored to ease the burden of students. A particular intriguing option is the education loan without collateral which offers an overseas education loan of up to 1.2 Crore at an interest rate of 10.65%. In case of the female students, the bank offers a concession of 0.5% on the interest rate. Students can repay the overseas education loan within 15 years after the moratorium period.
In conclusion, many financial institutions in India offers overseas education loan schemes that do not require collateral security. So, connect with your nearest education loan advisor and start with the education loan process.
