Which Bank Gives Education Loan Without Collateral for Abroad?

If you are planning to study abroad and need a loan without offering any collateral (like property or fixed deposits), several banks in India can help.

But if you’re wondering which bank gives an education loan without collateral for abroad, then please note this that banks like SBI, Bank of Baroda, Punjab National Bank, Canara Bank, Axis Bank, ICICI Bank, and HDFC Credila offer education loans without collateral (also called unsecured or non-collateral loans) for studying abroad, depending on the course, university, and your academic profile.

These loans are usually available up to ₹7.5 lakh under government guidelines but some private lenders and NBFCs can offer much higher amounts (up to ₹40–50 lakh) without collateral for top-ranked international universities.

Top Banks Offering Education Loans Without Collateral

Here’s a list of key banks and lenders in India providing unsecured education loans for abroad:

Bank / Lender	Loan Amount Without Collateral
State Bank of India (SBI)	Up to ₹7.5 lakh (may go higher for top institutes)
Bank of Baroda	Up to ₹7.5 lakh (special schemes for higher amounts)
Punjab National Bank (PNB)	Up to ₹7.5 lakh
Canara Bank	Up to ₹7.5 lakh
Axis Bank	Up to ₹40 lakh (based on profile)
ICICI Bank	Up to ₹40 lakh
HDFC Credila	Up to ₹50 lakh

Key Features of Non-Collateral Education Loans

• No need to pledge property or assets.
• Co-applicant (parent or guardian) usually required.
• Loan amount depends on course, country, and university ranking.
• Covers tuition, living expenses, travel, and insurance.
• Competitive interest rates, varying by lender.
  

Eligibility Criteria

• Indian citizen.
• Good academic record.
• Admission letter from a recognized foreign university.
• Co-applicant with stable income.
• Sometimes, universities must be on the lender’s approved list.
  

Documents Required

• Admission letter.
• Academic records.
• KYC documents (student and co-applicant).
• Income proof of co-applicant.
• Cost of study estimate.

How to Apply for an Education Loan Without Collateral – Step by Step

Here’s the step-by-step process to apply for a non-collateral (unsecured) education loan for studying abroad:

1. Research and Compare Lenders

Start by checking which banks, private lenders, or NBFCs offer non-collateral loans for your course and country. Look at:

• Loan amounts
• Interest rates
• Approved university lists
• Processing fees and repayment terms
  

Tip: Some lenders offer higher amounts for top-ranked universities.

2. Check Your Eligibility

Confirm if you meet the lender’s basic requirements:

• Admission to an eligible foreign university
• Good academic profile
• Co-applicant (usually a parent) with stable income
• Age and citizenship requirements
  

3. Gather Required Documents

Prepare the documents you’ll need, including:

• Admission letter
• Academic transcripts
• Identity proof (Aadhar, PAN, passport)
• Co-applicant’s income proof (salary slips, IT returns)
• Estimated cost of study (fee details, living expenses)
  

4. Submit Loan Application

Apply online or visit the bank branch. Fill out the application form carefully and upload or submit all required documents.

5. Wait for Loan Assessment

The lender will assess:

• Your academic and admission details
• Co-applicant’s financial strength
• The university’s ranking and course prospects. They may ask for additional information or clarifications.

6. Get Loan Approval

If approved, you’ll receive a loan sanction letter. This letter is often required for your visa application.

7. Complete Disbursement Process

Once you meet all formalities, the bank will disburse the loan directly to the university (for tuition) or your account (for living expenses).

Pro tip: Always read the loan terms carefully, including repayment start date, interest rate type (fixed or floating), and moratorium period.

Final Take

If you’re looking for an education loan without collateral abroad, it’s smart to compare multiple banks and lenders. Public sector banks usually stick to the ₹7.5 lakh limit, while private banks and NBFCs can offer much higher amounts if your profile is strong or you’re going to a top-ranked school.

Want to explore your options? Reach out to a trusted education loan consultant or visit your shortlisted banks to understand the process, interest rates, and repayment terms. Connect with AEC Overseas Educatioal Consultants to get smooth haslee free abroad  admission guidance.

Pro tip: Apply early, as loan approvals can take a long time and especially if you want to secure your visa smoothly.