Are you a student dreaming of studying abroad without collateral for your education loan? You're in luck. There are options available for education loans without collateral. These loans vary in terms and amounts, catering to students from diverse financial backgrounds. While there are few lenders that require collateral, there are many lenders including public banks, private banks, and more that can provide non collateral education loans. This blog will help you to understand everything about abroad education loans without collateral. 

Table of contents 

• Eligibility to get education loan without collateral 
• Lenders providing education loans without collateral 
• Document required for education loan without collateral 
• Application process for abroad education loan without collateral 
• Advantages of abroad education loan without collateral 

Eligibility to get education loan without collateral 

To secure a non collateral education loan for studying abroad, you must meet specific eligibility criteria. While these criteria can vary among different lenders, some common factors include: 

• Academic profile - education loans without collateral prioritize your academic excellence, as they rely on your past performance to estimate your future earning potential, given that no collateral is required. 
• Co-applicant finances - A co-applicant must have a robust CIBIL score, meet minimum income thresholds (typically 30,000 INR - 40,000 INR without financial obligations), and fulfill prescribed requirements. 
• Chosen country, university, and course - Ensure that your selected country, course, and university/college align with the lender's approved list for non collateral education loans for studying abroad. 
• Test scores - Your scores in English proficiency and standardized tests such as IELTS, TOEFL, GRE, SAT, etc., should meet or exceed the benchmarks set by your lender.

These are key considerations that can influence your eligibility for an education loan without collateral. 

Lenders providing education loans without collateral 

There are some lenders that can provide you with abroad education loan without collateral that are listed below in the table - 

Document required for education loan without collateral 

Here is a comprehensive list of documents usually necessary to secure a non collateral education loan. 

Documents required from the applicant for abroad education loan without collateral 

• Loan application form 
• Identity proof - PAN Card, Passport, Voter ID card.
• Address proof - a recent copy of the telephone bill, electricity bill, or water bill. ● Passport 
• Past academic record - 10th, 12th, undergraduate mark sheet, test scores of entrance tests like GRE, TOEFL, IELTS, etc. 
• Proof of admission - you can submit a conditional offer of admission as well. ● Statement of expenses - the entire cost of education. 
• Passport-size photographs 
• Loan account statement of one year, if there are any previous loans taken from any lender. 

Documents required from the co-applicant for abroad education loan without collateral 

• Identity proof 
• Address proof 
• Income proof - the documents for the same will differ depending on the type of employment, such as self-employed or salaried. 

Self-employed co-applicants - 

• Business address proof 
• Last 2 years IT returns 
• TDS Certificate 
• Certificate of Qualification 
• Bank account statement for the last 6 months 

Salaried co-applicants - 

• Salary slips of last 3 months 
• Copy of Form 16 for the last 2 years or copy of IT Returns for the last 2 years. ● Bank account statement for the last 6 months. 

Application process for abroad education loan without collateral 

Initiating a non collateral education loan application is a straightforward process. Simply follow these steps: 

• Check eligibility - Begin by visiting GyanDhan's website or using the loan eligibility form to assess your qualification for a non collateral study abroad loan. The eligibility criteria encompass your academic background, admission to a recognized foreign institution, and financial creditworthiness. 

• Apply and seek guidance - An Education Loan Counselor (ELC) from GyanDhan will assist you throughout the application process and provide you with a customized checklist. Submit your application, and the system will connect you with two suitable lenders. 
• Submit and authenticate documents - Assemble and provide the necessary documents, which include academic and financial records. Lenders will validate your application by scrutinizing admission details, financial information, and more. 
• Loan approval - Once the lender approves your application, you will receive a notification containing the approved loan amount. If you are satisfied with the terms, you can proceed by signing the agreement, leading to the disbursement of the required funds. 

Advantages of abroad education loan without collateral 

If you choose a non collateral education loan for studying abroad, you will enjoy several benefits. Here's a list of what you will get - 

• Simplified paperwork - Without the need for collateral, the document process is much simpler compared to secured loans. You will only have to provide easily manageable documents. 
• Freedom to pick your institution - Many lenders have a list of universities, colleges, or courses they support with education loans. But nowadays, several lenders offer non collateral education loans for studying abroad with a wide range of options. This means you can study wherever you prefer. 
• Co-Applicant as a reliable option - If you have a suitable co-applicant who is willing to help, you won't need to worry about putting up collateral. Your co-applicant should have a good credit history that matches the lender's requirements. A strong co-applicant can serve as an alternative to collateral. 
• Comprehensive coverage of study expenses - Education loans without collateral often provide substantial amounts that cover all your overseas study costs. Most expenses are taken care of if your application profile is strong and your loan amount falls within the lender's maximum limit. 

If you are feeling uncertain or confused, do not hesitate to reach out to GyanDhan. We are here to assist you in understanding the loan process and finding the right lender for your specific situation. Just check your loan eligibility with us, and we will be happy to help you every step of the way.