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12 Best Banks For Education Loan Without Collateral

12 Best Bank For Education Loan Without Collateral-Because you don’t have the collateral to get educational loan to pursue your career doesn’t mean that you can actually get educational loans. There are a lot of banks out there that offer educational loans to students without collateral to secure the loan.

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For you to qualify for the educational loan without collateral that these banks offer, you will have to meet some of the eligibility requirements for the loan and we are going to be talking about that alongside the banks that offer these educational loans without collateral.

What Is Educational Loan Without Collateral?

Educational loan without collateral is a loan that is available to students that want to further their education and it doesn’t require the student to pledge any collateral or security.

Since the loan doesn’t require any form of security, it is called an unsecured loan and it looks into some criteria before the student can qualify for the loan like the student’s academic profile, the creditworthiness of the student and co-borrower, the future earnings of the student and co-borrower etc.

12 Best Banks For Educational Loans Without Collateral

Most of these banks have seen the struggles of students to further their education as they cannot access educational loans because of lack of collateral and this is why they have designed means to help students assess educational loans without collateral to a certain amount to help them fund their education.

Most of these banks we will be talking about here are private banks and Non-Banking Finance Company (NBFC) in India and also some international lenders that have decided to do what they can to ensure that students don’t lose out on getting educated because of finance. These loans are given to students that what to study in indie or overseas.

  • Axis Bank

This private bank offers international educational loans to student even without collateral for up to INR (Indian Rupees) 40 lakhs. The unsecured educational loan from this bank has an interest rate of about 11.23% to 13% with loan tenure of 20 years

  • ICICI Bank

This is another wonderful private bank that offers educational loans to student without collateral up to INR 40 lakhs for some programs and institutions. The bank has an interest rate of about 10.75% and the loan tenure is between 10 to 12 years for a post-graduate program.

-12 Best Banks For Education Loan Without Collateral-

  • Bank of Baroda

This is a nationalized bank that offers educational loan to students without collateral through the Baroda Scholar scheme which is given for MBA, MS, MCA and other courses that help with job creation. To qualify for educational loan from this bank, you must have secured admission to a notified institution or course.

You could get an educational loan without collateral for up to INR 80 lakhs for specified institute and INR 60 lakhs for non-specified institutes. The bank loan has an interest rate of about 5.5% to 10.4% and the loan tenure is between 10 to 15 years.

  • SBI Bank

This is India’s leading nationalized lender and it offers Global Ed-vantage and student loan for students who want to study abroad. The educational loans without collateral are available only to the best colleges and it is up to INR 7.5 lakhs.

It has an interest rate of about 7.3% and loan tenure of is between 10 to 15 years. For student to qualify for this loan, you must have secured admission in the concerned institute in India as the loan without collateral is for those studying within India.

  • Avanse

This is a Non-Banking Financial Company that give educational loan to studying and they also give these loans without collateral. They also give international educational loans without collateral up to INR 40 lakhs with an interest rate of about 12.65% to 16%. The loan tenure is about 10 to 15 years and this depends on the profile of the student.

Avanse has a wide range of educational loan without collateral for all countries such as UK, Australia, USA and Ireland and the limit if the educational loan varies with the country.

  • HDFC Credila

This bank offers an educational loan with flexible repayment and an attractive interest rate. They give educational loans without collateral up to INR 40 lakhs at an interest rate of 12.05%. The loan tenure is between 10 to 15 years

  • Punjab and Sind Bank

This bank offers educational loans without collateral and at a good interest rate which will make students want to opt for the loan. They offer educational loans up to INR 20 lakhs and an interest rate of about 9.70%. The loan tenure is about 10 to 15 years.

  • IDBI Bank

If you are going for non-vocational courses, then you can consider this bank when it comes to educational loans. They offer educational loans without collateral up to INR 40 lakhs with an interest rate of about 9.0%. The loan tenure is between 10 to 15 years.

-12 Best Banks For Education Loan Without Collateral-

  • Incred

This is another top NBFC that gives educational loans without collateral up to INR 40 lakhs for students that want to study either in India or overseas and this amount can increase depending on your profile as a borrower. The interest rate is between 11.75% to 16% and the loan tenure system is 10 years.

It has a processing time of five days which is one of the fastest when it comes to applying for educational loans.

  • Auxilo

This is another NBFC that provides educational loans without collateral up to INR 40 lakhs for students that want to study in India or overseas. The interest rate for the loan is between 12.70% to 18% and the loan tenure is up to 10 years.

  • MPower

This is an international lender that provides educational loans without collateral and without guarantor. They are funding MSc students who are going for TOP MBA’s and also engineering courses in top universities. This international lender is funding US and Canadian Universities currently and compared to some other educational loans without collateral, they are very convenient to apply for as you can apply online.

It has an interest rate of about 10.99% in USD terms and loan tenure of up to 10 years.

  • Prodigy

This is a pioneer global financial institution that provides educational loans without collateral based on the student admit. This institution even offers educational loans without guarantor unlike some banks in India. The interest rate varies depending on the profile of the student and they can provide up to 100% financing.

-12 Best Banks For Education Loan Without Collateral-

Frequently Asked Questions On Educational Loans Without Collateral

  • What are the different types of educational loans that are provided?

There are two different types of educational loans that are provided by the banks and NBFC mentioned about are secured educational loans and unsecured educational loans.

The educational loans without collateral are called unsecured loans.

  • Would there be any processing fee levied for availing an educational loan without providing collateral?

Processing fee may be levied for availing an educational loan without collateral although it depends on the lender.

  • Are the interest rates higher for educational loans without collateral?

This also depends on the lender but in most cases, the interest rate for educational loans without collateral are higher compared to educational loans with collateral.

  • What are the advantages of availing an educational loan without collateral?

There is less paperwork involved in availing for this kind of loan and also the processing time is short meaning that you can get the loan as quick as possible.

  • What are the factors that are considered when providing an educational loan?

The lender of the educational loan considers the borrower’s and the guarantor future income and also the creditworthiness of the borrower and guarantor.

Final Note

So you should know that because you don’t have the funds to finance your education doesn’t mean you won’t chase that career you want as we have listed the best banks that you can get educational loans without collateral and also you would see that their loan conditions and tenure is favorable.

You can start your application by visiting their websites to know about how you can start your application for the educational loan to further your studies.

-12 Best Banks For Education Loan Without Collateral-

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