Domestic or Study Abroad Education loan without collateral
Students who have financial issues facing several problems while getting higher education in India or abroad. Because of Educational loans student can choose their dream career in India or abroad, even if they have financial constraints. Different banks offer education loans without needing collateral or security for loans up to a certain amount. This is advantageous for students who may not be able to supply such collateral’s.
What is Collateral?
When a borrower takes out an education loan with collateral, the borrower pledges an asset (immovable property, FDs, Mutual Funds, Bonds, and so on). The bank uses this collateral to raise funds in the event that the education loan defaults. The collateral serves as a guarantee for the loan. The value of the pledged collateral should be equal to or greater than the requested loan amount. When it comes to loans over INR 7.5 lakhs, most nationalised institutions, private banks, and NBFCs require collateral.
So, here are several bank which gives education loan with or without collateral.
1. State Bank of India (SBI)
State Bank of India gives Up to Rs.15 lakh for domestic education with collateral and Up to Rs.1.5 Cr for international education. If you don’t have any assets to give as collateral you can get loans up to Rs.7.5 lakh.
2. HDFC Bank
HDFC Bank is a bank based in India. They give Up to Rs.30 lakhs for domestic education and if you are applying for overseas education loan they will give up to Rs.45 Lakhs education loan. Talking about collateral loan, loans up to Rs.7.5 lakh, no collateral is required.
3. Axis Bank
This private bank gives up to INR 40 lakhs in overseas education loans with no collateral. The interest rate on an unsecured student loan from Axis Bank ranges from 11.25% to 13%. Unsecured loans have a 20-year repayment period.
4. IDBI Bank
It gives Up to Rs.20 lakhs for domestic education and if you are applying for overseas education loan they will give up to Rs.20 Lakhs education loan. It offers no-collateral foreign education loans up to INR 4 lakhs. This fee may also increase depending on the student’s profile. The interest rate on this loan ranges from 11% to 15%
5. ICICI Bank
This is another well-known private bank that provides education loans with no security for up to INR 40 lakhs for specific programmes and institutes. The interest rate for ICICI Bank’s unsecured education loans starts at 10.75%. For a post-graduate programme, the loan term is 10 to 12 years.
How to apply domestic or overseas education loan without collateral?
On paper, applying to the aforementioned private banks and NBFCs is straightforward. Borrowers who have an earning co-applicant can apply straight to the lender for an international education loan without putting up any security.
In fact, however, things are a little more difficult because the approval policies and application process are not particularly transparent and contain various dangers that could lead to the loan application being rejected.
Swami Education and Financial Services comes to the rescue of borrowers at this point, assisting them in obtaining an overseas education loan without collateral at the most beneficial terms and circumstances.
Get in touch with SEFS- best education loan consultant in Nashik right now to begin your application for a no-collateral foreign education loan.
Can i get an unsecured loan for an undergrad diploma, abroad.
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Can I get a Loan for post graduation in MS orthopaedics in India with low interest rate , and i have an agricultural land as collateral,but Nationalised banks are refusing them ,they are only accepting non agricultural land , kindly help
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