Abroad Education Loan Without Collateral

Are you aware that a significant number of students aspiring to study abroad face challenges when it comes to providing collateral for their education loans? Despite these obstacles, they remain determined to pursue their dreams and explore alternatives, seeking lenders who offer unsecured education loans for international studies. Numerous lenders, including private banks and NBFCs, extend education loans without the need for collateral. This blog is here to provide you with valuable insights on this subject. 

Eligibility for abroad education loan without collateral 

To be eligible for an unsecured education loan, you must satisfy specific criteria, although these requirements can vary among different lenders. Some common factors include:

1. Co-applicant Requirements - The co-applicant needs to have a good credit score (usually referred to as CIBIL), meet specific income thresholds (typically ranging from 30,000 INR to 40,000 INR without financial obligations), and meet the lender's specified criteria. 
2. Test Results - Your performance in English proficiency and standardized exams such as IELTS, TOEFL, GRE, SAT, and others should meet or exceed the benchmarks set by your lender. This plays a crucial role in loan approval. 
3. Academic Performance - Unsecured education loans place a strong emphasis on your academic track record, using your past accomplishments to project your potential future earnings. This is a significant factor since no collateral is required. 
4. Country, University, and Course Selection - It's essential to ensure that the country, university or college, and the course you've selected align with the lender's approved list for unsecured education loans for studying abroad.

Different lenders for abroad education loan without collateral 

Now, addressing the primary question – Which financial institutions offer unsecured education loans for studying abroad? It's crucial to recognize that it's not just banks; non-banking financial companies (NBFCs) and international lenders also offer education loans without requiring collateral. We've created a table that lists these lenders, along with details of their maximum loan amounts and interest rates. 

Read more about education loans without collateral - 

https://www.gyandhan.com/blogs/how-to-get-an-education-loan-without-collateral

Required document for abroad education loan without collateral 

Here is an extensive compilation of the typical documents required for obtaining an education loan without the need for collateral. 

Applicant Documents: 

1. Passport 
2. Loan application form 
3. Address proof (recent utility bill) 
4. Statement of education expenses 
5. Proof of admission 
6. Academic records (10th, 12th, undergraduate transcripts, and entrance test scores) 7. Identity proof (PAN Card, Passport, Voter ID) 
7. Loan account statement (if applicable) 
8. Passport-size photographs 

Co-applicant Documents: 

1. Identity proof 
2. Address proof 
3. Income proof (varies based on employment type) 
4. Self-employed: 

- Last 2 years IT returns 

- TDS Certificate 

- Business address proof 

- Bank account statement (last 6 months) 

- Certificate of Qualification 

1. Salaried: 

- Salary slips (last 3 months) 

- Copy of Form 16 (last 2 years) or IT Returns (last 2 years) 

- Bank account statement (last 6 months)

How to apply for education loan without collateral? 

To commence the process of securing an unsecured education loan, follow the steps below -

• Assess Eligibility - Start by visiting GyanDhan's website or utilizing their eligibility form to determine if you meet the requirements for a collateral-free loan to study abroad. Your eligibility hinges on your academic background, securing admission to an accredited foreign institution, and your financial circumstances. 
• Apply with Assistance - A GyanDhan Education Loan Counselor (ELC) will assist you throughout the application process and provide a personalized checklist. After you submit your application, the system will connect you with two lenders suited to your situation. 
• Document Collection and Verification - Gather and furnish the required documentation, including academic and financial records. Lenders will assess your application by scrutinizing your admission details, financial information, and more. 
• Loan Approval - Once the lender approves your application, you will receive notification of the approved loan amount. If you are satisfied with the terms, you can proceed by signing the agreement, and the necessary funds will be disbursed to you. 

Advantages of education loan without collateral 

If you choose an abroad education loan without collateral for studying overseas, you can benefit from several advantages. Here's a breakdown of what you can expect: 

• Simplified Documentation - Abroad education loans without collateral offer a much simpler documentation process compared to secured loans. You'll only need to provide easily manageable documents. 
• Institution Flexibility - While many lenders have specific lists of universities, colleges, or courses they support with education loans, several now offer abroad education loans without collateral for studying abroad, providing you with a wide range of options. This means you can choose to study wherever you prefer. 
• Co-Applicant as a Viable Option - If you have a suitable co-applicant willing to assist you, you won't have to worry about providing collateral. Your co-applicant should have a good credit history that meets the lender's requirements. A strong co-applicant can serve as an alternative to collateral.
• Comprehensive Expense Coverage - Abroad education loans without collateral often provide substantial amounts that cover all your overseas study expenses. If your application profile is strong and your loan amount falls within the lender's maximum limit, most of your costs are taken care of. 

If you ever find yourself uncertain or have inquiries, please don't hesitate to reach out to GyanDhan. We are here to assist you in understanding the loan procedure and finding the most suitable lender for your individual situation. Just verify your loan eligibility with us, and we'll be more than willing to lead you through every phase of the process.