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How to Get an Education Loan Without Collateral for Studying Abroad (Step-by-Step Guide)

Studying abroad is a major investment—and for many Indian students, financing this dream depends on education loans. But what if you don’t own property or don’t want to pledge family assets? The good news: you can still get an education loan without collateral. In this blog, we’ll walk you through the step-by-step process of applying for unsecured (non-collateral) education loans, key eligibility criteria, top lenders, and expert tips to increase approval chances.

What is a Non-Collateral Education Loan?

A non-collateral (unsecured) education loan is a loan that does not require you to pledge any asset like property, house, or fixed deposit. These loans are granted based on your academic profile, university ranking, co-applicant income, and repayment potential.

Step-by-Step Guide to Get a Non-Collateral Education Loan

• Shortlist Eligible Lenders
  Some popular banks and NBFCs in India that offer education loans without collateral:
  • HDFC Credila
  • Axis Bank
  • ICICI Bank
  • Avanse Financial Services
  • InCred
  • Auxilo
  • Leap Finance
  • Prodigy Finance (for select countries and top-ranked universities)


• Check Your Eligibility
  Most lenders consider the following factors:
  • Admission into a recognized university abroad (preferably ranked)
  • Strong academic background (60%+)
  • Co-applicant with stable income and good credit score
  • Country and course preference (STEM, MBA, etc.)


• Gather Required Documents
  Common documents required for a non-collateral loan:
  • Offer letter from the university
  • Student and co-applicant KYC documents
  • Academic transcripts and entrance test scores
  • Income proof (salary slips, ITRs, bank statements)
  • Loan application form
  • Expense estimate (tuition, living, travel, etc.)


• Apply to Multiple Lenders
  Each lender has its own approval criteria and sanction limits. Applying to 2–3 lenders increases your chances of getting better terms. AbroadKraft can help you compare lenders and match with the best one based on your profile.


• Wait for Sanction and Disbursement
  Once approved, you’ll receive a sanction letter stating the loan amount, interest rate, repayment tenure, and moratorium period. Funds are disbursed directly to the university or your account as per the agreement.

Top Courses & Countries for Non-Collateral Loans

• STEM courses (Science, Technology, Engineering, Mathematics)
• MBA and Management degrees
• Countries like the USA, UK, Canada, Australia, Germany, and Ireland
• Top 200 QS-ranked universities

Interest Rates and Repayment Terms

• Interest Rates: Typically 10% to 14% for NBFCs; may go lower with government schemes
• Repayment: Starts after course completion + grace period (usually 6–12 months)
• Loan Tenure: Up to 10–15 years
• Tax Benefits: You can claim tax deduction under Section 80E of the Income Tax Act on interest paid

Tips to Improve Loan Approval Chances

• Choose a well-ranked university or government-approved program
• Maintain strong academic records and entrance scores
• Add a financially stable co-applicant with good credit history
• Use AbroadKraft’s profile evaluation to shortlist the best-fit lender

How AbroadKraft Can Help

• Assesses your profile and matches you with the right lender
• Helps you prepare documentation and fill application forms
• Provides negotiation support for better interest rates
• Tracks approval and disbursement status on your behalf

Conclusion

You don’t need to own property or have large financial reserves to study abroad. With the right guidance, non-collateral education loans open doors to world-class education without risking family assets. Start your journey confidently with AbroadKraft’s financial assistance services. Book a free session now and take one step closer to your dream university!