In as much as everyone wants to attend the best school, it is important to note that some of the biggest gigs come with a price. Without proper funding, it is almost, or will i say totally impossible to achieve some certain feats in any sector, especially in the educational sector.
Getting a loan as an international students is quite tough, and that is the reason for this article.
Wanting to study abroad is a good decision, and on the question of how to get a loan for abroad studies, this article covers that as well as other important things to note like loan for abroad studies, types of student loans, and how to apply for study loans.
FAQ About Educational Loan
- What Is A Study Loan To Study Abroad?
- How To Get An Education Loan For Studying Abroad
- Types Of Student Loans For Study Abroad
- Requirements For Applying For Student Loans Abroad
- How To Apply For Abroad Education Loan Without Collateral
What Is A Study Loan To Study Abroad?
A student loan for abroad studies, are funds given to you by an organisation, that you have to repay after a stipulated period of time.
These overseas study loans can be obtained from the government of your country or from a private bank in your country or a foreign bank in your country of study.
Private loans require you to co-sign for it with your parents, because the amount is a large sum, while government education loans for study abroad offer more favourable rates.
A loan for foreign studies can be awarded based on financial need, or your credit score.
How To Get An Education Loan For Studying Abroad
Getting student loans for study abroad is not something that’s impossible, however to get them faster, you need to make yourself eligible enough for someone to trust you with funds and have the requirements the investors ask for.
This is how you get these much talked about student loans for study abroad.
1. Have An Impeccable Academic Background
To be able to get loans from abroad to study, you need to have a good academic background, because a poor result can reduce your chances of receiving that loan, as study abroad loans are highly competitive to gain.
2. Get Yourself A Cosigner
Having a cosigner is important, especially when applying for a loan in America, as a non-American citizen.
In this case, your cosigner should be a U.S. citizen or permanent resident with a good credit score, who has lived in the U.S. for up to two years. A cosigner will sign that they’ll pay off the loans should you be available to pay it.
3. Enquire From Your Program Of Study
The faculty of the program you’ll be studying abroad is a good place to get reliable information about student loans, and other financial aids that may be available to you.
They could also tell you the right processes to follow, and even offer to assist you with applying for the loan.
4. Ask The Financial Aid Office Of Your University
The financial aid officer at your university is another reliable source for getting accurate information on study abroad loans. They’ll provide you with trustworthy organizations you can get a loan from, and help you avoid scammers.
5. Apply For Federal Student Loans
The process for applying for federal student loans can go on for a while, so it’s always best for you to start your application on time, so you have all your documents ready without any hassle and don’t lose your spot to another applicant.
Filling and submitting a Free Application for Federal Student Aid (FAFSA®) form is the first and most important process of applying for a federal student loan.
Depending on the results of your FAFSA form, your college or career organisation will send you an offer for financial aid that could include the federal student loans. Your school of study will direct you on how to accept part or all of the loan.
Before receiving the funds for your loan, you will complete an entrance counseling; to show that you understand that you are obliged to repay the loan and then sign a Master Promissory Note to agree to the terms of the loan.
If you are confused about this process, you can ask the financial aid office of your school of study for clarification.
6. Save Up
It is wise that you save up some money to fund your studies abroad, because it could help you if the loans you get partially cover the cost of your studies, or if you are eligible to receive a loan.
7. Explore Your Options
Try to explore other options you have, while asking for a loan, so that you can choose the one that suits you best.
Options you can explore include government covered loans and private student loans.
8. Apply For Government Student Loans
Government loans are highly recommended because they’re your best options when applying for study abroad loans.
This is because government student loans have lower interest rates, are easier to qualify for, and have flexible repayment options.
The only downside to government study loans is that it might not cover all the expenses from your studies, so you might need to get extra money from somewhere else. Other than that, this is a good option for study abroad loans.
9. Get A Student Credit Card
Getting a student credit card for yourself prior to applying for a loan, builds yourstudent line of credit for studying abroad, thereby increasing your chances of your application for a loan being accepted.
Types Of Student Loans For Study Abroad
There are two major types of student loans to consider, when applying for an education loan for foreign studies, they are federal student loans and private student loans.
Your student loans can be funded either by the government or by private bodies like banks and other financial institutions.
There are various types of federal and private student loans available to you, but you can always make your choice based on determinants like your year in school, financial needs, and credit history.
However, federal student loans are considered to be more flexible and have more benefits than private student loans.
Federal Student Loans
Federal student loans are basically government education loans for study abroad lent to you by the government of your country and are usually need-based funding.
You can apply for a federal student loan via your university of study’s financial aid office, and will need to fill out a Free Application for Federal Student Aid (FAFSA). Federal student loans can only be utilised abroad if you currently earn credits from your home university.
First time applicants undergo an entrance counseling that explains the loan process and provides them with the necessary financial planning tools.
Federal Student Loans Types:
Some examples of country-based federal student loans that can grant you a government education loan for abroad studies are:
Education Loan For Abroad Studies By Indian Government
For hopeful students, the Government of India has put in place several funding schemes to assist with their studies.
Here are some education loan for abroad studies by indian government, you can utilize:
1. NBCFDC Education Loan Scheme
The National Backward Classes Finance & Development Corporation education loan scheme is given to applicants from the Other Backward Class (OBC), who wish to study general, professional, or technical courses at a Master’s or Bachelor’s degree level in an Indian university, or an Institution abroad.
NBCFDC Eligibility Criteria
- Government issued certificate of OBC.
- Admission into a foreign or Indian university.
- Admitted based on an entrance exam or on merit.
- Family income of less than Rs.3.5 lakhs.
2. Dr. Ambedkar Central Sector Scheme
The Dr. Ambedkar Central Sector Scheme is a government education loan scheme that was launched to finance the studies of students from backward and weak economic backgrounds at foreign universities.
Dr. Ambedkar Central Sector Scheme
- Government-issued certificate of OBC.
- Admission into a foreign university only.
- Admitted to study at a master’s & Ph.D. level
- Applied for bank loans from a bank that is a member of the Indian Banks Association.
- Family income below Rs. 3 Lakhs p.a.
3. Padho Pardesh Education Loan Scheme
Like the Dr. Ambedkar Central Sector Scheme, the Padho Pardesh Education Loan Scheme is another Indian Government education loan scheme established to help students from economically weaker sections of minority groups, complete their studies in foreign universities.
Padho Pardesh Education Loan Scheme Eligibility
- Must be pursuing & have secured admission seats at Masters or Ph.D. level.
- must belong to a minority community declared in section 2(c) of the National Commission for Minorities Act, 1992 ( Muslims, Christians, Sikhs, Buddhists, Zoroastrians (Parsis) and Jains )
- Have applied for a loan from a bank that is a member of the IBA.
- Family income should be less than Rs.6,00,000 lakhs p.a.
4. Central Scheme of Interest Subsidy for Education Loans (CSIS)
The CSIS is an initiative by the Ministry of Human Resources Development, Department of Higher Education for students from economically weaker sectors in India, who wish to pursue technical or professional courses in Indian or foreign universities.
Central Scheme of Interest Subsidy for Education Loans (CSIS) Eligibility Criteria
- Admitted to study any of the approved courses in a recognized Indian or foreign universities.
- Applied for loan under the Educational Loan Scheme of the Indian Banks’ Association (IBA).
- Family income of less than Rs. 4.50 Lakh per annum.
Canadian Government Student Loans For International Study
The Government of Canada and most of its provinces, work together efficiently to offer Canadian student loans for international study.
One such student loan is the Canada Student Loans Program which offers repayable and non-repayable grants to Canadian students.
Canada Student Loans Program is available in partner provinces and territories, and is awarded to:
- Full time and part time students.
- Low and middle income students.
- Students who have dependents.
- Permanently disabled students.
Canada Student Loans Program Distribution
Distribution of student loans in Canada, are based on provinces you apply from.
- Students in provinces like Ontario, British Columbia, Saskatchewan, New Brunswick, Newfoundland and Labrador, get Integrated Student Loans.
- Alberta, Manitoba, Nova Scotia and Prince Edward Island, students can apply for Canada Student Loans and Grants.
- Nunaut, Northwest Territories and Quebec, have their own loan programs, so Canada Student Loans are not available in these places.
- In Yukon, only permanent residents can get Canada Student Loans and territorial Grants.
What Can You Fund With The Canada Student Loans Program?
The Canada Student Loans Program, covers academic expenses like tuition, room and board, books, transportation, and other living expenses.
Canada Student Loans Program Eligibility Criteria
- Must be pursuing a degree, certificate, or license at an eligible university in the United States or in Canada as citizens.
- Cosigners are required for Non-US citizens.
- Must be a Canadian citizen, a permanent resident in Canada or a designated protected person.
- Must be a resident of a Canadian province or territory that offers the Canada Student Loans.
- Demonstrate tangible financial need.
- Is enrolled in a minimum of 60% of a full course load or 40% for students with permanent disabilities), if you as a full-time student.
- Is enrolled in 20-59 percent of a full course load as a part-time student.
- Be enrolled in a programme offered by a stated post-secondary school which runs programs for at least 12 weeks within a 15 week period.
- Pass a credit check if you are over 22 years of age and it’s your first Canada Student Loan application.
- Would not have exhausted your maximum lifetime limit for financial assistance.
Note: eligibility criteria differs for permanent residents of Northwest Territories, Nunavut and Quebec, as they have their own financial aid program.
American Government Federal Student Loans
The Government of The United States Of America, does well to offer different student loans for american students studying abroad.
Some of such federal student loans are:
- Direct Subsidized Loans – for eligible undergraduate students who showed finance need to cover their higher studies at a college or career school.
- Direct Unsubsidized Loans – are for undergraduate, graduate, and professional students, who qualify for a loan, but don’t demonstrate a financial need.
- Direct PLUS Loans – are awarded to graduate or professional students and parents of dependent undergraduate students who help them cover the cost of tuition. This loan doesn’t require financial need, but you need a credit check.
- Direct Consolidation Loans – provide you with the option to combine all your eligible federal student loans into a single loan under a single loan servicer.
American Government Federal Student Loans Examples:
1. Stafford Loans
Are granted as both subsidized and unsubsidized loans.
2. Federal Perkins Loan Program
The Federal Perkins Loan Program funds college or career school students with financial needs.
It is a low interest loan, but isn’t available in all schools. You are advised to check with the financial aid office of your school of study.
3. Foreign Enrolled Loans
Foreign Enrolled Loans are granted to US students who are either directly enrolled, or working on securing a degree or certificate at a non-US school.
This loan has over 400 approved schools around the world, and allows you to borrow up to $50,000 per year for undergraduate study programs, and up to $70,000 per year for students in medical, dental, law or business school to fund your studies abroad.
To qualify for the Foreign Enrolled Loan, you need to have a cosigner, but if you don’t have one, a good credit history can be another advantage.
The Foreign Enrolled Loan has a high loan limit, which is particularly helpful for US students studying in countries with a high cost of living.
Eligibility For American Government Federal Student Loans
- Must be a US citizen or US permanent resident studying outside their home country in an approved US school at an undergraduate or graduate level.
- Must receive credit at your home college or university.
- The school you choose must be accredited by the United States Secretary of Education recognised agency, and be eligible to participate in all federal student aid programs.
Private Student Loans
Private Student Loans are awarded by banks and other financial aid institutions, and are available for specific circumstances should you need them.
Private loans are applied for directly from the bank or financial institution you wish to source for funding from.
When you have applied for a private loan, you need to show proof that you can pay back by providing a good credit score. A cosigner can also help you qualify for bank loans for students studying abroad.
Types Of Private Student Loans
Below are some banks which you can get aforeign education loan from.
1. State Bank Of India
The State Bank Of India is said to offer the best bank for education loan for abroad studies in India, due to its quick online application process, attractive SBI education loan interest rate for abroad studies, high loan amounts, easy EMI options, early approvals, tax benefits, and better repayment options.
The SBI education loan for abroad studies is the most preferred choice for Indian students, because of its mouthwatering SBI abroad education loan interest rate, benefits, and its discounts for female candidates and gives loans of up to 1.5 Cr.
Depending on where you want to study, State Bank Of India offers SBI education loans for abroad studies and student loans that can fund your studies in universities and colleges within India too.
Types of student loans offered by SBI are SBI Takeover of education loan, SBI Skill Loan, SBI Part-time education courses, SBI Global Ed-Vantage, and SBI Scholar Loan, SBI Student Loan Scheme.
1. SBI Global Ed-Vantage Scheme
The SBI Global Ed-Vantage Scheme is an SBI overseas education loan, available to students looking to pursue several graduate, postgraduate, or doctorate courses in any discipline in foreign universities located in US, UK, Canada, Australia, Europe, Singapore, Japan, Hong Kong, or New Zealand.
This scheme is also a good option for an SBI education loan for mbbs abroad, in case you were wondering how to fund your MBBS study. However besides the education loan for mbbs abroad, SBI Global Ed-Vantage Scheme funds other studies as well.
SBI Global Ed-Vantage Scheme Eligibility
SBI Global Ed-Vantage Scheme is available for students applying for full-time courses at foreign universities and colleges.
2. SBI Scholar Loan Scheme
SBI Scholar Loan Scheme is another overseas education loan by SBI that covers full-time degree or diploma courses, obtained by the students through a selection process or entrance test. It covers full-time executive management courses like PGPX, as well as certificate or part-time courses.
SBI Scholar Loan Scheme Eligibility
The SBI Scholar Loan Scheme is for Indian students studying in eligible premier institutions in India, approved by the SBI student loan for study abroad investors.
3. SBI Student Loan Scheme
SBI Student Loan Scheme is a good SBI student loan abroad option for students studying graduate and post-graduate courses in India, with regular technical and professional degree or diploma courses taught by UGC or AICTE or IMC or Government approved colleges and universities, degree or diploma courses conducted by self-directed institutions like IIT, IIM, Central or the State Government approved Teacher training or nursing courses, and degree or diploma courses in pilot training and aeronautical, approved by the regulatory bodies of these courses.
It also covers Professional, technical graduation degree courses, or PG degree and diploma courses in line with a job offered by reputed universities, and courses taught by the CIMA (Chartered Institute of Management Accountants) – London, CPA (Certified Public Accountant) in the US, etc.
SBI Student Loan Scheme Eligibility
SBI Student Loan Scheme is given to Indian citizens intending to pursue their higher education in universities in India or abroad, who have already been admitted into their preferred school of study, before applying for the loan.
4. SBI Skill Loan Scheme
The SBI Skill Loan Scheme is another bank loan for study abroad that funds students studying courses facilitated by ITIs, polytechnics, training partners affiliated to National Skill Development Corporation (NSDC) or Sector Skill Councils, State Skill Mission, and State Skill Corporation.
SBI Skill Loan Scheme Eligibility
SBI Skill Loan Scheme is given to students of Indian nationality, who are pursuing skill development courses in India in Central or State education boards recognised schools, or colleges affiliated to reputable universities, leading up to a certificate or diploma or degree issued by such institutes as per the National Skill Qualification Framework (NSQF).
2. HDFC Bank
HDFC Bank is one of the largest private banks in India, offering to Indian students it’s HDFC bank education loan for foreign education. The maximum loan amount offered by HDFC is INR 20 lakhs, and students can apply for this loan even before they have secured an admission into university.
An example of a HDFC abroad education loan is the HDFC Credila which has aided thousands of Indian students to complete their higher education studies in over 35+ countries, including Canada, Germany, Australia, UK, France, Singapore, New Zealand, Dubai, and the Netherlands.
HDFC Credila customized hdfc education loan for abroad studies helps students to secure a loan approval even before their school admission has been confirmed, and they give you a loan before you get a visa for the country of study.
Benefits Of HDFC Credila
The HDFC Credila study abroad loan has numerous benefits which students can enjoy under the HDFC study abroad loan. Those benefits include:
1. Higher Loan Amounts
You can get a loan for up to 100% of your educational expenses, often worth more than Rs. 20 lakhs.
2. Easy Repayment Options
HDFC Credila makes loan repayment easier for students, with features like flexible loan terms, competitive interest rates, and EMI which start post-course completion.
3. Quick and Easy Loan Disbursals
Credila makes the process of loan disbursals very easy, as it offers a doorstep service, easy documentation, and quick loan disbursals. It also has a web billing service which you can use to apply for loans from anywhere in the world.
4. Covers Over 950 Courses
Indian students trust HDFC Credila to finance over 950 courses which they may have interest in studying, in more than 4,000 education institutions in 36 countries. This loan covers your tuition fee, living expenses, books, travel, and laptops.
5. Verified Tax Rebates
When you apply for HDFC Credila, you get deserved tax benefits listed under section 80(E) of the Income Tax Act 1961.
6. Loan Approval Before Admission
You can apply for a loan from HDFC Credila before your admission to your school of study is confirmed. This is done with a loan sanction letter, which you can use as proof of funds.
3. Bank Of Baroda (https://www.bankofbaroda.in/)
The Bank Of Baroda abroad education loan funds students who have secured admission to study an MBA, MCA, MS, or other eligible courses.
The Bank Of Baroda abroad education loan interest rate for specific institutions is BRLLR + 1.50% Spread (including SP)– (irrespective of the loan amount), and for non-specified institutions it is BRLLR + 2.15 % Spread (including SP) – irrespective of the loan amount).
Eligible Courses For Bank Of Baroda Education Loan:
- Graduate courses for working professionals taught by reputable universities.
- Post-Graduate courses: MCA, MBA, MS. etc.
- Courses conducted by CIMA-London, CPA in USA etc.
- Regular Degree or Diploma courses – Aeronautical, Pilot training, Shipping etc, courses recognized by the local Aviation or Shipping authority and Director General of Civil Aviation or shipping in India or the designated regulatory bodies in India or abroad for the purpose of employment in India or abroad.
- Science, Technology, Engineering and Mathematics (STEM courses).
- Medical, Law, Economics, econometrics, Art, performing arts, and Design Courses.
- Other Management courses besides STEM Courses, Medical and Other Education courses.
1. Baroda Scholar Loan
The Bank Of Baroda scholar loan is for MBA, MCA, MS, and other eligible courses that facilitate job creation. Students applying must have been admitted into recognised institutes and courses.
The loan limit for the Baroda Scholar Loan for specified institutes is Rs. 80 lakhs and for non-specified institutes is Rs. 60 lakhs.
2. Baroda Education Loan to Students of Premier Institutions
Baroda Education Loan to Students of Premier Institutions is for students of Indian nationality who were admitted into premier educational institutions in India.
The amount disbursed for this loan are based on institute categorisation – AA, A, B, C grade.
3. Skill Loan Scheme
The Skill Loan Scheme is for students studying technical education. The amount for this loan is somewhere between Rs. 5,000 to Rs. 1,50,000.
Repayment periods depend on the loan amount but can go up to 7 years.
4. Axis Bank (https://www.axisbank.com/)
The Axis Bank abroad education loan funds studies both in India and abroad, and give away loans starting at the amount of Rs. 50,000 at attractive education loan interest rate for abroad study.
Benefits Of The Axis Bank Abroad Education Loan
- Pre-admission loan sanction letter.
- Maximum loan repay tenure.
- Minimum of Rs 50,000 loan.
- Covers tuition fees, hostel charges, and cost of books.
- No margin on education loans up to 4,00,000.
- 5% margin on loans above Rs 4,00,000 for studies in India.
- 15% margin on education loans above Rs 4,00,000 for overseas studies.
- Covers courses in medicine, engineering, and management.
- Easy loan disbursals.
- Can apply for it with your parents as cosigners.
5. ICICI Bank (https://www.icicibank.com/)
The ICICI bank abroad education loan, financially supports deserving students who wish to study abroad, with a sum of up to 10 – 20 Lacs.
It also offer low education loan for abroad studies interest rate, which you can use when you decide the amount you need for a loan.
Features Of The ICICI Abroad Education Loan
- Upto 4 Lacs – 13.6% Interest rate
- More than 4 Lacs – 14.6% Interest rate
- Secured loan Above 7.5 Lac security
- Unsecured loan Upto 7.5 Lacs security
- Late payment 2% per month
- Repayment period 5-7 Years
- Course Period + 6 to 12 months
ICICI Abroad Education Loan Eligibility Criteria
- Indian resident or citizen
- Secured admission in the colleges before disbursement.
Benefits Of The ICICI Abroad Education Loan
Tax benefits as stated under section 80 E
- 0.50% concession in interest rates on Education Loans for female students pursuing higher education in India and abroad
- Above 4 lacs – 5% margin for study in India
- Above 4 lacs – 15% margin for study in Abroad
- Covers college fees, hostel charge, books and education related expenses.
Courses Covered In The ICICI Abroad Education Loan
- Indian taught courses – Approved courses leading to graduate or post graduate degree and PG diplomas conducted by recognized colleges/ universities recognized by UGC/ Govt./ AICTE/ AIBMS/ ICMR.
- Abroad taught courses- MCA, MBA, MS, etc Courses conducted by CIMA- London, CPA in USA etc.
- Photo ID
- Residence Proof
- 2 passport size photograph
- Admission letter
- College fee-breakup
- Marksheets (If applicable)
- X, XII and Graduation mark sheet
For Co- Borrowers:
- Pan card
- 2 passport size photograph
- Residence proof (electricity bill/telephone bill/house lease agreement/bank statement)
- 6 month bank account statement
- ITR/Form 16 of last 2 years
- Income proof( Latest 3 salary slips)
- Residential Flat
- Residential House
- Non?Agricultural Land
- A Fixed Deposit in ICICI Bank
6. Bank Of Alfalah (https://www.bankalfalah.com/)
Bank of Alfalah is one of the few banks in Pakistan that offers study loans to students, at the lowest education loan for abroad interest rate.
The Bank Alfalah study abroad loan is available for Pakistani students who wish to pursue their higher education abroad. The Bank awards an amount of 70,000 USD or equivalent in the student’s country of study’s required currency annually, which covers tuition fee, living expenses, and applying charges.
To be awarded this loan, you need to submit all the required documents at any Bank Alfalah in Pakistan branch.
7. FCMB (https://www.fcmb.com/)
The FCMB study abroad loan is facilitated through an initiative called the EAS (Education Advisory Services); a collaborative effort by FCMB and MOD Group, to provide an opportunity for more Nigerians to have access to quality international education.
EAS is beneficial and aims at taking away the usual struggle accompanied with wanting to study abroad, and it also assists parents with funding their ward, through its attractive education loan abroad.
8. Punjab National Bank (https://www.pnbindia.in/)
PNB Udaan is the PNB abroad education loan offered by the Punjab National Bank to Indian students aspiring to study abroad. This overseas student loan is for students pursuing graduate, post-graduate, job-oriented professional, and technical courses.
To get this loan, you will need to show a loan margin of 15% for any amount above INR 4 lakhs and the base rate offered by PNB is the same rate on loan given for top 200 universities across the world.
9. We Make Scholars (https://www.wemakescholars.com/study-abroad-education-loan)
We Make Scholars is not a bank or any form of government body, but it is a website where you can gain access to all forms of student loans for overseas study, complete with detailed directions on how to apply for each of those loans.
Wemakescholars loan range from government loan for study abroad to private or bank education loans for study abroad.
This organisation is supported by the IT Ministry, Govt of India, and they offer unbiased abroad education loan support to students who are planning to study abroad, the services are free, they are associated with 14+ banks in India and can help you get the best abroad education loan that suits you the most.
When you’re applying for a bank loan from private banks, We Make Scholars acts as an intermediary and tries to get you the best interest rates, and they also have a customer support team that collaborates with and negotiates on your behalf throughout your entire loan process.
Requirements For Applying For Student Loans Abroad
Every establishment has specific documents which they ask for as requirements to give you a loan for higher education abroad.
However, below are some basic documents you might require for a student loan:
- Filled application form
- Passport photographs of you and your co-applicant.
- ID of you and the co-applicant (ID can be a PAN card, driving license, Voter ID card, Aadhar (for Indian applicants), Card, or Passport.
- Resident proof of you and the co-applicant.
- Academic documents – Mark sheet and certificates
- Results for GRE, GMAT, TOEFL,or IELTS, etc.
- Admission letter from the university or college.
- Last six months bank statements of your co-applicant
- Income proof of your co-applicant
- Collateral (if applicable) – flat, home, or non-agriculture land. The following documents are required – property title deed, building approved plan, and NOC for a mortgage from builder or society.
How To Apply For Student Loans
To be able to get the best education loan for studying abroad, you need to follow the terms and conditions set out by the rule provider, make yourself eligible enough to receive loans, and more importantly, you need to know how to apply for student loans.
While every establishment have application processes specific to them, below are simple steps on how to apply for student loans.
1. Compare And Explore Study Abroad Loans
Compare each study abroad loan option presented to you, so that you can ultimately find the best education loan for abroad studies for you. Most loan websites have a comparison tool you can use to do this or they have a team of advisors that can match you to the right loans that suit your profile.
2. Review Terms And Conditions
Review the terms and conditions of any lender you matched with regarding your loan, then compare each one and pick the one that is good for you.
Depending on the stipulated process, an application for a loan can be made in person or online, during which you and or your co-applicant / co-signer will be required to submit the required documents online.
How To Apply For Abroad Education Loan Without Collateral
Collaterals are assets like personal real estate, home equity, personal vehicles, Pay-checks, cash or savings accounts, investment accounts, paper investments, fine art, jewelry, or collectibles, that you pledge to the lender while applying for an education loan to study abroad.
A collateral is asked for, so that in case you’re not able to pay back the loan, the bank or organizations can reclaim those possessions in place of the money given to you.
It is difficult to get a non collateral education loan for abroad studies, but not entirely impossible, as you can always opt for an unsecured education loan, which gives loans to you without asking for a collateral.
However, these education loans for study abroad without collateral, are only given based on you and your co-signer’s future income and creditworthiness.
If you and your co-signer have a good credit history, as well as the academic and professional experience to do well after the master’s course you applied for, then this type of loan can be given.
Organizations That Offer Education Loans Without Collateral
Nationalized banks, private banks, NBFCs, and international lenders are the type of organisations that often offer education loans without collateral for abroad studies.
All you need to do is to identify such organisations and banks like the ones we have mentioned below, and apply for one.
1. Leap Finance (https://leapfinance.com/)
Leap Finance is an Indian international loan provider, that sanctions an instant collateral free education loan for abroad studies which you can avail after 3 days of applying for the loan on their online platform.
2. Axis Bank (https://www.axisbank.com/)
Axis Bank offers up to INR 40 Lakhs without collateral, for its study abroad loan without collateral. Interest rates vary from 11.25% to 13% depending upon the applicant’s profile.
3. InCred (https://www.incred.com/)
InCred is an NBFC that offers overseas education loans without collateral of up to INR 40 lakhs, an exception however, can be made for this amount. Interest rates for InCred are from 11.75% to 16% depending on the loan amount.
4. Avanse (https://www.avanse.com/)
Avanse provides both secured and unsecured loans, their foreign education loan without collateral is facilitated via the latter. The loans start from INR 1 lakh to INR 40 lakhs, it can be increased depending on your profile.
5. Auxilo (https://www.auxilo.com/)
Auxilo offers education loans abroad without collateral, and they also provide loans for studies in India. You have no influence on the minimum amount you can borrow, however for their unsecured loans, the maximum amount is INR 40 lakhs; case-level exceptions can be made.
Like we told you in the beginning, getting a loan for abroad studies isn’t something that is impossible or inaccessible, and as long as you meet the right organizations and follow the right directions, you are well on your way to getting a loan to fund your study in your dream country.