Education Loan without collateral for Abroad Studies
Are you looking for a Collateral free education loan for abroad studies? Discover the best schemes Indian Banks provide for Studying Abroad here. Many students hold a dearly held desire to receive a top-notch education overseas, which can lead to a variety of chances and interesting experiences. The costs involved with studying abroad, however, might be a substantial barrier. This is where student loans for international study can save the day and provide deserving students a chance at success. Many banks and financial institutions provide student loans overseas to aid with tuition fees, living costs, and other associated charges. Students who want to begin this transforming journey must comprehend the interest rates, application procedures, and deadlines associated with obtaining such free education loans. In this post, we’ll go through the ins and outs of Collateral Free Education Loans without collateral for abroad studies, giving readers the knowledge they need to decide what they want to do with their lives after graduation.
Collateral vs. Collateral-Free Loans
Collateral means putting up valuable stuff to get a loan with lower interest, kind of like a safety deal for the lender. On the other hand, loans without collateral don’t need you to give up valuable things, but they might have higher interest rates. Deciding between the two depends on your money situation, how much risk you’re going to bear, and what the lender is asking for. So, if you’re cool with giving something valuable, you might get a lower interest rate. But if you’re not into that, you could still get a loan with a bit higher interest. It all comes down to what works best for your wallet and how comfortable you are with the deal the lender is offering.
Key Considerations Before Getting an Abroad Education Loan
Before obtaining an education loan for international studies from a bank, it’s crucial to consider several key factors to make an informed decision:
Interest Rates: Compare interest rates offered by different banks and select a loan with competitive and favorable terms.
Loan Amount and Eligibility: Determine the maximum loan amount based on your financial need and the cost of education in the destination country.
Repayment Flexibility: Check for flexible repayment options, such as grace periods or deferred repayment until after course completion.
Collateral Requirements: Assess whether the loan requires collateral and evaluate your ability to provide the necessary security.
Loan Disbursement Process: Understand how the loan disbursement process works, whether funds go directly to the institution or to the student.
Currency Fluctuations: Consider the impact of currency fluctuations on loan repayment and choose between fixed or floating interest rates based on your risk tolerance.
Considering these factors will enable you to make a well-informed decision when obtaining an education loan for international studies, ensuring a smoother financial journey throughout your academic pursuit.
Comparison between Education Loan Providers
Public banks like SBI offer education loans for studies abroad with interest rates ranging from 8.10% to 11.15%, while private banks like HDFC offer rates as low as 8.64%. Processing fees vary from nil to 2%, with repayment periods up to 15 years. Collateral requirements differ; some offer collateral-free loans for amounts up to Rs. 7.5 lakhs. Margins range from nil to 20%. Private banks like ICICI provide quick processing within 5-7 days, whereas public banks like Union Bank may take up to 7 working days. Age restrictions vary, with some banks not specifying an upper limit.
Note: – The time for the loan approval is different for all loan providers. See all the provided information properly and choose accordingly.
Portals to apply for Education Loan in India
1. Vidya Lakshmi Portal
Vidya Lakshmi Portal is a Ministry of Education, Government of India initiative, providing an online platform for students seeking educational loans. It simplifies the process of finding suitable loans by offering various schemes from multiple banks and financial institutions. Students can access essential information on interest rates, loan terms, and repayment options for informed decisions about their financial future. The initiative aims to promote affordable higher education, empowering students to contribute to the nation’s growth and development.
There are 3 simple steps using which you can apply for an Educational loan in Vidya Lakshmi Portal. They are:
- Go on the portal and yourself registered.
- Fill up one single form that you will find there.
- Apply to multiple bank.
2. JanSamarth Portal
The JanSamarth Portal serves as a digital platform linking 12 government-sponsored credit schemes, including the Central Sector Interest Subsidy (CSIS) for education loans. This scheme offers up to 4% interest rate subsidy on loans for students pursuing full-time courses at recognized foreign universities, with a maximum loan amount of ₹7.5 lakh. The subsidy is applicable for a maximum of 15 years and can be applied for through the portal by submitting a loan application form to a participating bank.
To get educational loan from JanSamarth Portal you need to follow this following steps:
- Check your eligibility: – Answer few questions and get matched with best suitable scheme(s).
- Apply Online: – Provide basic details & documents and the advanced technologies would capture/auto-fill required details through smart analytics.
- Get Digital Approval: – View offers from 200+ Lenders and get Digital Approval from selected bank.
- Track your Application: – Check the real time status of your application at your convenience.
In conclusion, collateral free education loan for studying abroad are essential for students to pursue academic excellence globally. With careful planning and research, these loans provide a pathway to overcome financial barriers, allowing aspiring scholars to seize opportunities for personal growth and future success.
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| Name of Banks | Type of Bank | Schemes under Higher education abroad | Interest rates | Processing Fees | Security | Repayment Period | Margin And Security Norms | Age Restrictions | Processing Time |
|---|---|---|---|---|---|---|---|---|---|
| SBI | Public | Student Loan: A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured. Studies abroad (above Rs. 7.50 lakhs): Regular Graduate or Post-Graduate Degree/Diploma/Certificate/Doctorate Courses in any discipline offered by foreign Institutes/Universities in USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand and Europe [Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, United Kingdom] will be covered under the scheme. | Above Rs. 7.50 lacs & Upto Rs 1.5 Cr – 11.15% Concession – 0.50% for students availing of SBI Rinn Raksha or any other existing life policy. Further Concession – 0.50% for girl students | Loans upto Rs. 20 lacs : NIL Loans above Rs. 20 lacs: Rs. 10,000 (plus taxes) | Upto Rs. 7.5 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third-party guarantee Above Rs. 7.5 Lacs: Parent/ Guardian as co-borrower and tangible collateral security | Repayment period of upto 15 years after Course Period + 12 months of repayment holiday* | Up to Rs 4 Lacs – Nil Above Rs 4 Lacs – 5% for studies in India, 15% for studies in abroad | 20-25 working days after submission of collateral. | |
| Central Bank of India | Public | Cent Vidyarthi Loan: For education in Top Rated Management / Engineering / Medical Institutions Abroad Abroad under D category with Collateral Security | 8.10% to 11.50% (RBLR+1.25%) | For Studies in India: NIL For Studies Abroad: 1% of loan amount Max: Rs.15,000/- (Non-Refundable) | – Parent(s) / guardian to be joint borrower(s). – NCGTC cover to be taken for loans up to Rs 7.50 lakh. – 100% tangible collateral security equal to the loan amount and assignment of future income required for student loan payment. | – Repayment of the loan will be in equated monthly installments for a period of Maximum 15 years for all categories after the moratorium period. – Moratorium Period= Course Period + One Year | Upto Rs. 4 lacs: NIL, In India Above Rs. 4 lacs: – 5% , In Abroad Above Rs. 4 lacs: – 15% Margin (Scholarship may be included in margin.) | ||
| PNB | Public | PNB Saraswati: Regular Scheme for pursuing Higher studies in India & Abroad. PNB Udaan: Education Loan Scheme for providing financial support to meritorious students for pursuing higher education abroad | Interest charged on simple basis during the moratorium Concession of 1% ROI if interest serviced during moratorium period and thereafter installments are paid regularly. | For Studies abroad: Upfront fee @ 1% with a minimum of Rs.10,000/- which is refundable on availment of the loan. | PNB Saraswati: Repayment Of The Loan Will Be In Equated Monthly Installments (EMIs) For A Period Of 15 Years For All Categories. (Excluding Repayment Holiday) PNB Kaushal: Loans Upto Rs. 50,000 – Upto 3 Years Loans Between Rs. 50,000 To Rs 1 Lakh – Upto 5 Years Loans Above Rs. 1 Lakh – Upto 7 Years | Margin : Up to Rs. 4 Lacs –Nil Above Rs. 4 Lacs– 5% (India), 15% (abroad) Security : Up to Rs. 4 Lacs – Nil Above Rs. 4 Lacs-7.50 Lacs- Besides the parent(s)/guardian executing the documents as joint borrower(s), suitable third party guarantee be taken Above Rs. 7.50 Lacs – Tangible collateral security of suitable value acceptable to bank. Parent/guardian be made joint borrower(s) | No | 15 days | |
| Canara Bank | Public | Educational loan scheme – For abroad studies from select top ranking Universities. IBA Model Educational loan scheme – For pursuing higher studies in India and Abroad. | Coll. Security 100% & above: 10.85% Coll. Security 75% & above (less than 100%): 11.10% Coll. Security 50% & above (less than 75%): 11.35% IBA Skill Loan (Max. Rs.1.50 lakh): 10.75% | 0.50% of the loan amount up to Rs.10,000 (for collateral security coverage of 100% and above) | · Collateral security from Max 100% to Min 50%* · Assignment of future income of the student · Loan granted jointly with parent/guardian and student. | Repayment of the loan will be in equated monthly Installments up to a maximum of 15 years excluding the moratorium period ( i.e., course period plus one year). | Upto Rs.4.00 Lakhs – Nil Above Rs.4.00 Lakhs – Studies in India – 5% Studies abroad – 15% | They took 15 to 20 days to sanctioned the loan. | |
| IDFC FIRST Bank | Private | Higher Education Loan – International | 9% onwards | Nominal processing fee. | Collateral is not mandatory to avail student loans at IDFC FIRST Bank. Collateral requirement is decided on the basis of requested education loan amount, institute classification and applicant’s profile. | IDFC FIRST Bank provides up to 100% financing. In selected cases bank may request on margin money depending on the Institute classification done in the IDFC FIRST Bank’s policy. | 18 years old or above at the time of loan commencement | within 2–6 days | |
| IDBI Bank | Private | Education Loan Scheme for Studies Abroad Dr. Ambedkar Central Sector Scheme of Interest Subsidy | For collateralized education loans 9-11% For non-collateralized education loans 11-13% | 1% of the loan amount (Maximum: Rs.5,000) | The immovable property value should be a minimum of 133% of the required loan Liquid securities should be at least 110% of the required loan | Upto 15 years after the moratorium period | 15% of the loan amount | ||
| Bank of Baroda | Public | Baroda Scholar Loan: provides an opportunity to avail education loan for the students going abroad for Professional / Technical studies. Baroda Education Loan to Students of Premier Institutions: Bank of Baroda education loan is for students who have secured admission into one of the premier educational institutions in India or aboard with preferential treatment. Baroda Education Loans for EDP being offered by Premier Institutions Abroad | 9.15% onwards, upto 11.15% Special concession in ROI @ 0.50% for female students is available | Up to Rs.7.50 Lakh :NIL Above Rs.7.50 Lakh: 1.00% of Loan amount maximum Rs. 10,000/- | No Margin on loans up to 4 lacs. | Once the application is submitted Bank of Baroda will take about 3 – 7 working days to run the background verification to approve the loan. | |||
| Bank of India | Public | Star Education Loan – Studies Abroad | 10.95% onwards | Nil | No collateral security upto Rs.7.50 Lakhs | Moratorium up to course period plus 1 year. Repayment period : 15 years from the date of commencement of repayment | Nil margin upto Rs.4.00 Lakhs | Once all the documents are submitted and everything is fine with lenders, you can expect your sanction letter within 7-10 days. | |
| ICICI Bank | Private | Education Loan: ICICI Bank presents education loans up to Rs 50 lakh for your educational requirements in India and up to Rs 1 crore for overseas. | 9.85% onwards | Up to 2% + GST | Collateral-free loan of upto ₹ 1 Cr.* | Flexible repayment options | 5 – 7 days after document submission | ||
| Bank of Maharashtra | Public | Model Education loan Scheme: For studies in India and Abroad Interest Subsidies scheme for loan | For collateralized education loans 9-11% For non-collateralized education loans 11-13% | Nil | Up to 7.5 lakhs: Clean Above Rs. 7.5 lakhs: Collateral equivalent to quantum of finance after providing requisite margin. | Course period + 1 year The repayment period is 180 months (excluding the moratorium period), which is a maximum of 15 years. | Up to Rs 4 Lacs – Nil Above Rs 4 Lacs – 5% for studies in India, 15% for studies in abroad | ||
| HDFC Bank | Private | Education Loan For Foreign Education | upto 8.64% | 1.5% + Taxes of the Sanction Amount & is Non-Refundable | Get a loan repayment option up to 14 Years including the Moratorium Period. | No Margin Money Required | No | It takes around 15 days for an educational loan to be sanctioned. | |
| Kotak Mahindra Bank | Private | Education Loan | Up to 16% | Nil | |||||
| Axis Bank | Private | Education Loan: Axis Bank brings you Education Loans for studies both in India and abroad starting from Rs. 50,000 at attractive interest rates. | 13.70% to 15.20% Up to 4 Lakhs – 15.20% Loans greater than Rs. 4 Lakhs and up to Rs. 7.5 Lakhs – 14.70% Loans greater than Rs. 7.5 Lakhs – 13.70% | Processing fees up to 2% of the loan amount + GST | No Collateral security upto 7.5Lakhs | Loan repayment tenure upto 10yrs | Marginal Cost Based Lending Rate (MCLR) – 9.05% MCLR Reset frequency for Education Loans – Half Yearly | The applicant and co-applicant should be over 18 years of age and citizen of India | Within 15 working days from the date of receipt of the complete education loan application along with all documents required by the bank for a proper appraisal. |
| Federal Bank | Private | Federal Career Solutions Loan Special Vidya Loan | Contact the bank | Contact the bank | No security is needed Up to Rs 4 Lakhs. | Moratorium period+ 15 years as repayment period (Moratorium period will be course period + one year) | Up to Rs 4.00 L No Margin is applicable. For studies in India above Rs 4 Lakhs – 5% For Studies Abroad above Rs 4 Lakhs – 15% | Once the application is submitted Federal Bank will take about 3 – 7 working days to run the background verification to approve the loan. | |
| Union Bank of India | Public | Union Education Premier Abroad Union Education Special Education Loan Scheme | 9.30% to 11.30% | Nil | Up to Rs.40.00 lakh: No collateral security or third-party guarantee. *Above Rs.40.00 lakh: Tangible collateral security of minimum value of 50% of total loan amount and interest accumulation during the course and moratorium period, acceptable to bank. Interest concession of 0.50% is available if collateral offered is 100% or more. | 180 months /15 years (After moratorium period) | “Up to Rs 4 Lacs – Nil Above Rs 4 Lacs – 5% for studies in India, 15% for studies in abroad” | No restriction with regard to the minimum and maximum age. | 7 working days to get the Loan sanctioned from Union Bank of India after submission of requisite documents and papers. |
| New India Bank | Co-operative | Educational Loans | Interest calculated on daily reducing balance. | Up to Rs.5.00 lakhs No Security. | Moratorium payment of interest and principal for maximum period equal to course period + 1 year Repayment thereafter in remaining period of the loan, maximum period of loan not to exceed 180 months ( including moratorium period ). | Once all the documents are submitted and everything is fine with lenders, you can expect your sanction letter within 7-10 days. | |||
| RBL Bank | Private | Education Loan | Floating Rate of Interest | Flexible Tenure up to 180 Months | |||||
| Indian Overseas Bank | Public | Educational Loan IOB Vidya Shrest | List ‘A’: RLLR+0.40% List ‘B’: RLLR+0.90% | With tangible collateral of full value and Parent/ Guardian as co-borrower List ‘A’ – Above Rs.15.00 lac up to Rs.30.00 lac List ‘B ‘ – Above Rs.7.50 lac up to Rs.30.00 lac | Maximum 180 months after commencement of repayment | NIL | |||
| Karur Vysya Bank | Private | Educational Loans: It is a term loan given for studies in India and abroad. | Minimum 9.99% to Maximum 13.98% | Nil | For loans up to Rs. 4 Lakhs: Parents to join as Co Applicants & No security. For loans above Rs. 4 Lakhs and up to Rs. 7.50 Lakhs: Parents to join as Co-applicants together with collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional case, waive third party guarantee if satisfied with the Net Worth / Means of parent/s who would be executing the documents as “Joint Borrower”. Above Rs. 7.50 Lakhs: Parents to join as Co-applicants together with collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in an exceptional case, waive third party guarantee if satisfied with the Net Worth / Means of parent/s who would be executing the documents as “Joint Borrower”. | In 5-7 years after repayment holiday (course period and 1 year or 6 months after getting job whichever is earlier) | Up to Rs. 4 Lakhs: Nil Above Rs. 4 Lakhs: Studies in India – 5% Studies in abroad – 15% | ||
| Tamilnad Merchantile Bank | Private | TMB – Super Education Loan TMB – Education Loan | 9.40% to 12.40% | Nil | For loans up to Rs. 4 Lakhs: Parents to join as Co Applicants & No security. For loans above Rs. 4 Lakhs and up to Rs. 7.50 Lakhs: Parents to join as Co-applicants together with collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional case, waive third party guarantee if satisfied with the Net Worth / Means of parent/s who would be executing the documents as “Joint Borrower”. | Course period + 1 year The repayment period is 180 months (excluding the moratorium period), which is a maximum of 15 years. | Up to Rs. 4 Lakhs: Nil Above Rs. 4 Lakhs: Studies in India – 5% (10% in case of Super Education Loan) Studies in abroad – 20% | ||
| Bank of India | Public | STAR EDUCATION LOAN – STUDIES ABROAD | For loans upto Rs.7.50 lacs 1 Year RBLR +1.70% For loans above Rs.7.50 lacs 1 Year RBLR +2.50% | NIL | Upto Rs. 4 lacs Parent(s) or co-borrower as joint borrowers. Obtention of cover under CGFSEL is mandatory. Above Rs.4 lacs & up to Rs.7.50 lacs Parent(s) or co-borrower as joint borrowers, Obtention of cover under CGFSEL is mandatory Above Rs.7.50 lacs Parent(s) or co-borrower as joint borrowers. Tangible Collateral security of suitable value acceptable to the Bank. Assignment of future income of the student for payment of Installments. | Repayment period : 15 years from the date of commencement of repayment | Up to Rs.4.00 lacs (Studies Abroad for all courses) – Nil Above Rs. 4.00 Lakhs and up to Rs. 7.50 Lakhs* – 15% Above Rs. 7.5 lacs – up to Rs 150.00 Lacs (Studies Abroad for Medical courses) – 10% Above Rs. 7.5 lacs – up to Rs 150.00 Lacs (Studies Abroad for other than Medical courses) – 10% | ||
| J & K Bank | Public | Education Loan Scheme: Finance the requirements for higher studies in India or abroad. | Quantum of loan Tenor up to 5 years (Fixed Rate of Interest ) Tenor exceeding 5 years (Floating Rate of Interest ) Up to Rs. 10.00 Lakhs – RLLR + 2.00% RLLR + 1.50 % Above Rs. 10.00 lakhs and up to Rs. 20.00 lakhs – RLLR + 3.00% RLLR + 2.25 % Above Rs. 20.00 Lakhs – RLLR + 3.50% RLLR + 2.75 % | For studies in India – Nil. For Studies abroad –Processing fee (upfront) @ 1% of the loan amount sanctioned with a maximum of Rs.5,000 for considering loans for studies abroad. | Up to Rs4.00 lakhs – No Security Parents to be joint borrower(s). Above Rs4 lakhs and up to Rs7.5 Lakh – Parent(s)/ guardian(s) to be Joint Borrower(s). Collateral Security: Third party guarantee of two persons. Loans covered under Credit Guarantee Fund Scheme: In case loans granted are covered under Credit Guarantee Fund Scheme No Third Party Guarantee shall be required. Above Rs7.5 Lakh – • Parent(s)/ guardian(s) to be Joint Borrower(s). • Collateral Security: Tangible collateral security having fair market value of not less than 100% of sanctioned limit and interest payable (capitalized) during moratorium, along with the assignment of future income of the student for payment of installments. | The maximum door to door tenor of the Education Loan shall not exceed 15 years (including Course Period, Moratorium Period and Repayment Period). | Upto Rs 4 lakhs : Nil Above Rs 4 lakhs : Studies in India – 5% Studies abroad – 15% | No. The upper age limit shall be capped at 35 years | |
| GP parishik bank | Co-operative | Education Loan | 11% to 12% on all amount | Nil | The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned | Up to 120 Months. | 20% | No | |
| Uco Bank | Public | NA | Once the application is submitted UCO Bank will take about 3 – 7 working days to run the background verification to approve the loan. | ||||||
| Indian Bank | Public | NA | |||||||
| Keralag Bank | Public | Education Loans | Irrespective Of Loan Amount 13.60% (Education Loan without EM security) Upto Rs.7,50,000/- 12.60% (Education Loan with EM security) Rs.7,50,001/- and above 11.00% (Education Loan with EM security) | NA | Loans upto Rs. 4 lakh – No security, Parent to be joint borrower. Assignment of future income of the student, for payment of installments Loan above Rs.4 lakh and upto Rs. 7.5 lakh – Parent to be joint borrower Third party guarantee having net worth to cover the loan amount or equitable mortgage of landed property with sufficient value Assignment of future income of the student, for payment of installments Loan above 7.5 lakh – Parent to be joint borrower EM of landed property with sufficient value, covering atleast 150% of the loan amount. Assignment of future income of the student, for payment of installments | For loans above 7.5 lakh, maximum repayment period is 15 years For loans above 5 lakh, maximum repayment period is 10 years Moratorium period (Course period + one year or 6 months after getting job whichever is earlier) | Upto 4 lakhs – Nil Above Rs.4 lakh for Studies in India -5% Abroad -15% |