How to Get Education Loan for Abroad Studies Without Collateral?
It is the dream of many Indian students to study abroad. General education opens the minds to higher opportunities in career, exposure internationally and self development. Nevertheless, overseas education can be very expensive, as the tuition fees, housing, travelling, and living costs should be paid. For most families, arranging such a large amount becomes a major challenge.
This is where education loans for abroad studies play a vital role. But what if you don’t have any property, land, or assets to pledge? The Great News is that many financial institutions now offer education loans for abroad studies without collateral — also known as unsecured education loans.
CredVeda, a trusted financial platform, helps students balance and apply for the best non-collateral study abroad loans from top government and private banks, ensuring transparent action and faster approvals.
What Is a Non-Collateral Education Loan?
A non-collateral education loan (or unsecured loan) is a type of student loan where you don’t have to pledge any security, property, or asset to the bank. Instead, approval is based on your academic merit, co-applicant’s income, and institution ranking.
These loans are ideal for students who:
-
Don’t own property or fixed assets
-
Are applying for top-ranked universities abroad
-
Have strong academic records and career potential
Documents Required for Education Loan Without Collateral
Documents Required for Education Loan Without Collateral
The following are the documents that should be prepared well in order to secure a quick approval when applying to take an unsecured education loan:
-
Admission Letter at the University.
-
Mark Sheets (10th, 12th, graduation).
-
Aadhaar Card, PAN and Passport.
-
Visa copy (if applicable).
-
Established earning of co-applicant (salary slips, ITR, Form 16).
-
Bank statements (last 6–12 months).
-
Breakdown of cost estimate of the course and living expenses.
Proper documentation enhances chances of being approved especially on unsecured loans.
Banks and NBFCs Offering Education Loans Without Collateral
Several Unsecured study abroad loans are available in a few banks and the non-banking financial companies (NBFCs) in India. They do not all share the same eligibility parameters, interest rates as well as limits. Here are the major ones:
in India provides unsecured study abroad loans. All of them have different eligibility requirements, interests, and limits. Here are the major ones:
1
Government and Public Sector Banks
Some banks provide education loans for abroad studies without collateral up to a certain limit (usually ₹7.5 lakh). For higher amounts, collateral may be required.
-
State Bank of India (SBI Global Ed-Vantage) -3.5 lakh without security.
-
Bank of baroda (Baroda scholar loan) Non-collateral up to 7.5 lakh.
-
Punjab National Bank (PNB Udaan) Education loan with and without collateral to foreign universities.
2
Private Banks
Private sector banks have higher non-collateral loan limits and faster processing times.
-
ICICI Bank Education Loan – Up to ₹40 lakh without collateral for top universities.
-
Axis Bank Education Loan – Up to ₹50 lakh unsecured for selected institutions.
-
HDFC Credila – Personalized non-collateral education loans with flexible repayment.
3
NBFCs and Fintech Lenders
NBFCs (Non-Banking Financial Companies) have more lenient eligibility and have higher amounts of unsecured loans to study abroad.
Popular NBFCs include:
-
Avanse Financial Services – Up to ₹50 lakh unsecured loans.
-
InCred – Covers 100% study cost for reputed global universities.
-
Auxilo Finserve – Provides flexible, non-collateral loans based on academic merit.
-
Credila & CredVeda Partner Banks – Offer digital loan processing and low-interest options for eligible students.
How to Apply for an Education Loan Without Collateral?
Applying for a study abroad loan without security involves a few essential steps. Here’s how to do it efficiently:
Step 1: Research and Compare Lenders
Compare NBFCs and banks according to the interest rate, limit of loan, time of processing, and eligibility.
This is made easier by platforms such as CredVeda that allow you to see multiple lenders at the same time so that you see the transparency and quick decisions.
Step 2: Check Eligibility
Make sure that your course, university and co-applicant income is eligible to the lender. Certain banks have preferred the ranked universities (such as QS Top 200).
Step 3: Submit Documents
Send your papers over the internet or at the closest office. Make sure your admittance letter and financial documents are prepared.
Step 4: Loan Evaluation and Approval
Banks evaluate your academic background, course potential, and co-applicant’s credit score. Approval is quicker than secured loans since no property verification is needed.
Step 5: Loan Disbursement
After the approval, the amount of the loan is paid directly to the university or according to the fee schedule.
-
Strong Academic Profile: High GPA, test scores (GRE, GMAT, IELTS, TOEFL).
-
Top University Admission: Loans are easily approved for globally ranked universities.
-
Co-Applicant’s Stable Income: Salaried or self-employed co-applicants with good credit history improve eligibility.
-
Course Employability: Programs with better job prospects after graduation increase lender confidence.
Credit Score: Maintain a strong CIBIL score for both student and co-borrower.
When you are applying to a non-collateral education loan, remember to include the following points in order to increase the chance of getting approval:
Advantages of Applying Through CredVeda
CredVeda stands out as one of India’s leading education loan platforms offering:
-
Compare fast the government, private and NBFC lenders.
-
Assistance in securing non-collateral education loans up to ₹50 lakh.
-
Expert guidance for documentation and university verification.
-
Transparent processes and personalized loan recommendations.
If you’re planning to study abroad and don’t have collateral, CredVeda can help you find the right lender with minimum effort and maximum approval chances.