I can get loan without mortgage?
Asked by Roshni kamle about 1 year ago
Education loans as a financial aid have recently become quite prevalent in the Indian study abroad market. Be it easy accessibility or the high number of Indian students willing to study abroad, education loans are gaining a lot of attention and demand. An education loan for abroad studies without collateral is even more attractive, as it does not require any form of security when applying for an education loan. There are numerous banks in India offering an abroad education loan without collateral. Want to discover more? Keep reading, as this blog will answer all your questions on an abroad education loan without security, and all the related details!
In order to understand more about an education loan for study abroad without collateral, let us first know what a collateral is.
So what actually is a collateral?
A collateral is an asset which can be used by borrowers to pledge against the loan amount as security. Collateral can be any asset like property, fixed deposit, agricultural land, gold, etc.
There are several banks in India that offer a study abroad loan without collateral, upto a particular sum or amount, thereby making it easier for study abroad students to pursue their studies at best universities across the globe. It has also been observed that a study abroad loan without collateral has a tad bit higher rate of interest, and a shorter repayment period.
Top Lenders to Apply for Education Loan without Collateral
Lenders available for a loan without collateral to study abroad can be categorised into public and private lenders. Some prominent lenders include:
-Public banks like SBI, Bank of Baroda, etc offer applicants with a loan of upto 7.5 Lakhs without collateral.
-Private banks like Axis Bank, ICICI Bank, HDFC, etc offer students a loan amount upto 40 lakhs without collateral. Private banks also have a repayment period of around 10-12 years, and an interest rate between 10-12%.
-Other lenders include NBFCs (Non banking financial companies) like Incred and Auxilo, which offer students with an abroad study loan without security of upto 40 lakhs, with a rate of interest between 10-18%.
-There are also some foreign lenders available like Leap Finance, Prodigy Finance, etc. these lenders support applicants by offering an overseas education loan without collateral of upto 80% of the total expenses. The interest rates are observed to lie between the range of 10-16%.
Eligibility and Documents Required to Apply for Abroad Education Loan without Collateral
A loan without collateral for study abroad requires applicants to meet specific eligibility criteria like:
-Minimum score of 60% in high school in order to assure the employability potential
-Financial co-applicant’s income
-Degree program that the applicant wishes to pursue
-Country that the applicant wishes to apply for
-University that the applicant is applying to
There are some private banks that cater to only particular countries, and specific degree programs.
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