Is it possible to get an education loan without any collateral?

Do you want to seek higher studies overseas but are unable to give collateral for an education loan? You don’t have anything for security. You may ask, ‘Is it possible to get an education loan without any collateral? It is an ideal option for students who can’t afford to study with a collateral loan. They can take the benefits of collateral-free education loans and enjoy their studies abroad. To continue their studies without pledging any security against the loan amount.

Student loans are excellent financial assistance to students wishing to study abroad for higher education. Without education loans, millions of students would have never attended their desired universities. Yet, numerous students cannot offer collateral as security to obtain a study abroad education loan. Therefore, such students have to rely on unsecured education loans to finance their education overseas.

Here, we will discuss everything about secured and unsecured education loans, such as the eligibility criteria, procedure, and method of application for a foreign education loan without any collateral, the repayment process, and information about banks. Let’s have a look!

What is an Education Loan without Collateral?

An education loan without Collateral is a collateral-free loan wherein the applicant is not obligated to give any security against the loan amount. This is good news for all who want to get a collateral loan to pursue studies without any hassle. Banks like non-banking financial corporations (NBFCs) and foreign lenders are playing a vital role in getting collateral-free education loans at minimum higher interest to support overseas education.

Types of Loans:

When you understand the difference between secured and unsecured loans. It will help you to choose the better option to get a loan. It can help you to decide better when borrowing money. When you know secured and unsecured loan eligibility criteria you can make a good decision regarding loans that will be better for you.

Secured Loans

To get secured loans you need to pledge some security to the lender like property, vehicle, or something valuable. These things for security help bank authorities to recover the amount if you are not able to pay them. These loan amounts have a slightly lower interest because they have already kept your valuable things as security. So they trust you and provide secured loans.

Unsecured Loans

If we talk about unsecured educational loans, they don’t require any collateral or valuable things for security. They provide loans just looking for your academic performance, grades, creditworthiness, and income that you would be able to pay the loan in the future or not. That’s why there is no collateral required. Unsecured loans usually have higher interest rates than collateralized loans comparatively.

Eligibility criteria to get an Education Loan without any Collateral

Students who need a loan without collateral must follow the eligibility criteria to pursue studies without any barriers.

• Loan for PG /master’s degree/graduate diploma, certificate courses in STEM or management discipline
• Income should be above 4 lakhs per annum after bearing all expenses and liabilities.
• GRE score should be 300 + for the USA
• No loan will be given for MBBS degree and Pilot Aviation courses
• IELTS score must be higher than 6 or 6.5 bands for all nations
• The co-applicant must have a CIBIL number above 700 for all.
• Parents must have their own residential house
• No loan for Integrated courses
• No loan for UG Degree or certificate courses
• No loan for doctorate and Pilot Aviation programs

Differences between Collateral and Non-Collateral Education Loans

Where Can I Get An Education Loan without any collateral?

There are several top finance institutions and banks that offer education loans to enable students to meet their academic goals. A 20-year payback educational loan generally would begin at 7.00% annually in interest.

Public Banks

Public banks like SBI, BOB, and others have their policies. Usually, they provide loans without security of up to 7.5 lakhs for any course and nation.

Private Banks

Private banks are also more liberal and can provide loans of larger amounts to study abroad without collateral. Depending on the bank, you can get loans up to 1.5 crore for study purposes. Private banks keep a list of approved institutions and universities for which they provide unsecured loans. These loans usually have interest rates beginning at 11.05% and can differ. HDFC, ICICI, Axis Bank, etc. are some of the best private banks offering unsecured education loans. To get an education loan easily for different countries. 

Empowering Dreams With Studymoon without any Burden

Study Moon is making easy access to higher education by providing collateral-free student loans which are designed to offer facilities to students. In order to pursue academic goals without economic burden. Studymoon knows that several students do not have properties to give security. That’s why they are providing the best, safe, and student-friendly solution—no collateral, no guarantor. 

This real platform offers economical support for tuition fees, residential expenses, exam fees, and more. It doesn’t matter where you want to study in USA, Canada, Australia or anywhere abroad, Studymoon gives a plan for your academic career by capitalizing limitations. Our application process is easy, quick and online for students. 

Studymoon.com is dedicated to making education reasonable for all. It is trusted and authentic. Say goodbye to collateral stress and hello to a brighter future. So what are you waiting for? Go and apply now on Studymoon.com and take your first step toward an outstanding education.

Education Loan Repayment Process For all

The repayment process takes 12 months before starting a loan and after finishing the program or 6 months after getting a job. The real moratorium duration might differ between lenders, giving borrowers some leeway before they begin repayment of their loans.

When selecting an education loan, look at other charges such as processing fees and insurance and analyze benefits such as tax exemption and moratorium periods. Some education loans offer tax advantages that will lessen your burden of expenditure. 

Benefits of an Education Loan without Collateral in India

Advantages of an Education Loan without Collateral in India:

No Collateral Required: These loans do not involve the applicants putting up their properties, e.g., a house, land, fixed deposits, etc, as collateral to secure the loan amount.

Wide client base: These loans suit the needs of students from any background and are offered for studies in India as well as foreign countries.

High Loan Amounts: Most lenders provide loans for higher amounts for abroad education loans without security. This amount can be spent on multiple expenditures related to education, such as tuition fees, living expenses, book purchases, laptops, etc.

Tax Benefits: As per Section 80E of the Income Tax Act, the interest on education loans is eligible for tax benefits for up to 8 years by the applicants.

Which Bank provides loans without collateral in India

There are some banks which provide education loans:

• Union Bank of India
• Yes Bank
• Axis Bank
• IDFC First Bank
• ICICI Bank

How do I remove collateral from a loan?

Typically, you’ll work with your lender’s loan-servicing department. They’ll need to know specific details about the existing pledged collateral and what you’re planning to change. By this, any lender takes what are the things to revise a loan agreement without applying a default.

Conclusion

We conclude that it is surely possible to get an education loan without collateral. Several lenders and platforms like Studymoon.com are taking part in offering collateral-free education loans to contribute to deserving students. These loans are originated to help students who may not have properties or capital but have strong academic careers and high goals. Collateral-free loans is an open door for students from all communities. With flexible repayment terms, low interest rates, and a simplified application process, these loans offer financial freedom and peace of mind. While it’s important to research and choose a trusted provider, collateral-free loans are now a reliable option for funding your studies, whether in your home country or abroad. In conclusion, lack of collateral is no longer a hassle—determination, academic progress, and the right financial partner can take you all the way.