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Tata Capital > Blog > Loan for Education > Non Collateral Education Loan upto 25 Lakhs

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Non Collateral Education Loan upto 25 Lakhs

Non Collateral Education Loan upto 25 Lakhs

Non Collateral Education Loan upto 25 Lakhs

A lingering question often shadows dreams of higher education abroad, “Can I get a Rs 25 lakh education loan without collateral?” And the straight answer – yes, you can!

In this comprehensive guide, we will navigate the realm of study abroad loan without collateral, helping you understand the ins and outs of securing a substantial 25 Lakhs for your educational pursuits. Let’s get started.

What is a Non Collateral (Unsecured) Education Loan?

A non-collateral student loan, often referred to as an unsecured education loan, is a financial boon for students seeking funds for their overseas education without the obligation of providing collateral. Unlike traditional loans that demand assets like property or land as security, non-collateral education loans allow you to borrow without risking your valuable possessions. 

Maximum Amount

One of the key advantages of an education loan for abroad studies without collateral is the flexibility in loan amounts. Students can secure up to Rs 50 Lakhs to fund their education without the burden of collateral. This substantial sum caters to various expenses, including tuition fees, living costs, travel expenses, and study materials, ensuring that financial constraints don’t hinder your educational pursuits. 

Eligibility Criteria for Education Loan Without Collateral

Now, let’s delve into the essential eligibility criteria shaping your journey to securing a Rs 25 Lakhs study abroad loan without collateral:

1. Academic Profile

Your academic achievements are pivotal for an abroad education loan without collateral. Maintain a robust academic record with a minimum of 60% in 10th, 12th, and your degree. More than three backlogs may pose challenges, so emphasize your academic dedication for higher approval chances.

2. Financial Co-Applicants

In the absence of collateral, the financial co-applicant plays a crucial role. Lenders assess the co-applicants income and CIBIL score, seeking assurance for repayment. Whether salaried or self-employed, the co-applicant acts as a safety net, instilling confidence in the student’s repayment capabilities.

3. Course/Degree

Lenders favour specific courses, especially in STEM disciplines. UG and PG programs in STEM fields are preferred, while other courses may face scrutiny. Understanding the lender’s preferences for your chosen course enhances your application’s favourability.

4. Country and University

The choice of country and university significantly impacts approval for education loan for abroad studies without collateral. Focus on major study-abroad destinations like the USA, UK, Canada, Australia, Ireland, and Germany for higher approval chances. Private banks may have specific approved universities, emphasizing alignment with their criteria for optimal results.

Top Lenders in India Offering Non-Collateral Education Loans for Abroad Studies

Since studying abroad comes with high costs, several Indian lenders now provide education loan for abroad studies without collateral. Some of the top lenders include:

LenderLoan Amount
Tata Capital₹85 Lakhs
State Bank of India (SBI)₹50 Lakhs
HDFC Bank₹45 Lakhs
Axis Bank₹1 crore
IDFC First Bank₹1 crore
Bank of India₹7.5 Lakhs

All of these lenders provide a study abroad loan without collateral. However, it’s wise to compare factors such as interest rates, repayment tenures, processing fees, moratorium periods, and additional benefits before finalising the option that best suits your financial goals.

You can also use Tata Capital’s Education Loan EMI Calculator to compare the offerings of different lenders. Simply enter your desired loan amount, interest rate, and tenure to instantly calculate your monthly EMI and choose the option that you’re most comfortable with.

Pros and Cons of Non-Collateral Education Loans

Before opting for an education loan for abroad studies without collateral, it’s important to weigh the pros and cons. 

The advantages of abroad education loan without collateral are: 

  • No collaterals: You don’t need to own property, land, or fixed deposits to apply. This makes studying abroad possible for first-generation students and those from modest financial backgrounds.
  • Approvals based on merit: Approval for a study abroad loan without collateral depends on your university offer, academic record, and future earning potential, not your family’s wealth.
  • Cover major education expenses: These loans usually cover tuition as well as living costs, insurance, travel, and study materials, so you’re not left searching for extra funds.

Now, let’s take a look at the cons of non-collateral education loan for abroad:

  • Higher interest rates: Since these loans don’t require collateral, interest rates might be slightly higher than secured loans.
  • University and course limits: Most lenders approve loans only for selected universities or specific courses. If your university isn’t on their list, you may not qualify.

Factors That Impact Approval & Loan Amount Without Collateral

Here are some significant factors that determine the approval of your education loan for abroad studies without collateral:

1. Academic Profile

Your academic record plays a major role in loan approval. Good, consistent scores in Class 10, Class 12, and undergraduate studies show your ability to handle the course and complete it successfully. Students with steady academic performance tend to have better employability and repayment potential.

2. Clear Career Planning 

Lenders favour students with clear career goals and practical plans after graduation. When you show how your course matches current market demand, understand expected salaries, and are aware of job opportunities in your field, your loan application becomes much stronger.

3. University and Course Reputation

Admission to well-ranked universities and courses that are in high demand like engineering, medicine, business, or data science, greatly improves your chances of approval for a study abroad loan without collateral. Lenders usually prefer institutions with strong placement records, as they increase your earning potential post-graduation.

4. Co-Applicant’s Financial Stability 

Since there’s no collateral, your co-applicant’s income, credit score, and employment stability become crucial. A CIBIL score above 700, steady income, and low existing debt obligations enhance the chances of approval. 

Tips to Improve Approval Odds for a Non-Collateral Loan

Here are some tips to increase the chances of approval for a non-collateral loan:

1. Choose universities that are officially recognised.

2. Select a financially stable co-applicant.

3. Organise all required documents in advance.

4. Maintain strong academic and test performance.

5. Evaluate multiple lenders before deciding.

6. Present a clear and convincing career roadmap.

How to Apply for an Education Loan Without Collateral: Step-by-Step

At Tata Capital, the application process for an abroad education loan without collateral is quite simple. You just need to follow the given steps:

1. Visit Tata Capital’s official website. 

2. Go to the Education Loan section and click on “Apply Now.”

3. Once you receive the confirmation of your eligibility, input your basic details. 

4. Upload necessary documents. These include your photograph, PAN card, identity and address proof like Voter ID/Passport/Driving License/Aadhaar Card, and signature. If you are a working professional, you’ll also need to provide income proof. 

5. If you’re applying for an abroad education loan without collateral with a co-applicant, you’ll also need to provide their identity, address, and income proof, and your own admission proof, marksheets, degree certificates, and entrance exam marks. 

6. Once all the documents are uploaded, click submit.

7. After verification, the loan will get approved and disbursed directly to your bank account.

Conclusion

Non-collateral education loans have made it easier for many Indian students to study abroad. With good academic records, clear career plans, and careful comparison of lenders, you can secure a loan on favourable terms.

If you want competitive interest rates, flexible repayment terms, an easy application process, and admission opportunity to a range of courses, Tata Capital is what you’re looking for. 

At Tata Capital, you get a non-collateral education loan for abroad at loan amounts up to ₹85 lakhs, a hassle-free approval process, quick loan disbursal, and expert financial guidance at every step. 

Apply now to begin your world-class education!

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FAQs

Can I get an education loan without collateral?

Yes, you can get an education loan without collateral. Tata Capital offers unsecured education loans at attractive interest rates, with easy eligibility criteria, minimal documentation, and a hassle-free application process. 

Can I get a 100% education loan?

Yes, you can get a 100% education loan at Tata Capital. Simply fill in the online application form and upload all necessary documents. Once these are verified, your education loan will be disbursed directly to your account.

Is there a processing fee associated with an education loan without collateral?

Yes, there is a nominal processing fee associated with an education loan without collateral. A processing fee is charged to process and verify your education loan application. 

What is the loan procedure for an education loan without collateral?

To apply for an education loan without collateral, simply visit the official Tata Capital website. Here, complete the online form and upload all necessary documents. Alternatively, you can also apply for an education loan at your nearest branch. Once the documents are verified, the loan will be disbursed directly to your account.

What is a non collateral education loan?

A non-collateral education loan refers to an education loan that is unsecured or for which you do not need to pledge an asset. Tata Capital offers education loans at attractive interest rates and with minimal documentation and an easy application process. 

Who qualifies for an education loan without collateral for study abroad from India?

 

Students with 60%+ marks in 10th, 12th, and graduation, admission to reputed universities in popular destinations (USA, UK, Canada, Australia), preferably STEM courses, and financially stable co-applicants with good CIBIL scores qualify for an abroad education loan without collateral.

Which banks and NBFCs offer non-collateral education loans in India?

 

There are many lenders of study abroad loan without collateral in India. Some of the top ones are Tata Capital, SBI, HDFC Bank, and IDFC First Bank.

How much can I borrow without collateral for my entire study abroad expenses?

 

At Tata Capital, you can get up to ₹85 lakhs for your non-collateral education loan for abroad at competitive interest rates and flexible repayment tenures.

What documents are needed to get an education loan without collateral?

 

To get a non-collateral education loan for abroad, you usually need to have your photograph, identity and address proof, signature, and income proof.

Does a non-collateral loan require a co-applicant or guarantor?

 

Yes, because a non-collateral education loan for abroad is unsecured, a co-applicant with a strong financial profile provides the required safety net.

Are interest rates higher for non-collateral education loans?

 

As an abroad education loan without collateral is not pledged against any asset, its interest rates might be slightly higher than regular loans.

What to do if my profile or university is not eligible for unsecured loans?

 

You can consider collateral-based education loans, apply to universities that are approved by lenders, strengthen your co-applicant’s financial profile, or apply for alternative sources like scholarships and grants.

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