Study abroad without any collateral?

My name is Kiran and my family background is below middle class. How to get loan without security or collateral?

Asked by Kiran almost 2 years ago

Answers 1
Edwin  Selvaraj

Edwin Selvaraj

MentR-Me Team

Country Expert : UK

Education loans have enormously benefited many people who want to pursue high-quality education but find it challenging to collect the necessary funds. Students can now get unsecured loans up to 4 lacs INR. Parents or guardians are added as co-borrowers for loans up to INR 7.5 lacs, and a third-party guarantee is acquired. For loans beyond INR 7.5 lacs, real estate or any other asset must be provided as collateral.

Indian banks provide several financing programs for studying abroad:

1. SBI Student Loan Scheme: Through the SBI Student Loan Scheme, Indian students who have been accepted to any university in India or abroad may apply for a student loan. Twenty lacs is the most significant loan amount available at a low-interest rate, and a 15-year repayment period is required. Additionally, borrowers must offer collateral as security if the loan amount is more critical than INR 7.5 Lacs. The payback process starts after a year of successfully finishing the course.

2. SBI Global ED-VANTAGE Scheme: This loan is available to Indian students who wish to pursue full-time study abroad. The maximum student loan amount is INR 1.5 crore, with a 15-year repayment period. The borrowers must start making payments six months after the course is over, and the loan must be guaranteed by security.

HDFC Bank Education Loan for Foreign Education: Students from India who desire to attend college abroad can apply for an HDFC Bank Education Loan for Foreign Education. Under this initiative, low-interest loans up to INR 20 lacs are permitted. It also offers tax benefits to the borrower and could be accepted before admission.

3. Oriental Bank of Commerce Education Loan for Study in India and Abroad:  If the student chooses to continue his studies in the United States, the loan amount will be determined by the institute's fee schedule. The most attractive feature of this plan is that early repayment is not penalised, and insurance coverage is provided. If the loan amount exceeds INR 4 Lac, a margin of 15% is applied to loans taken out for studying abroad.

Before accepting a loan, we advise thoroughly reviewing its terms and conditions. We emphasise this issue since it is crucial to comprehend the terms of the loan agreement. If you have questions, never ask bank agents; always consult specialists.


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