Planning to study abroad but don’t have assets to pledge? A non-collateral education loan can help you finance your overseas education without security. Here’s everything you need to know before applying.
Also Read: Complete Guide to ICICI Globetrotter Student Insurance
What is a Non-Collateral Education Loan
A non-collateral education loan allows students to borrow without needing to secure the loan with assets. This is beneficial for those wanting to study abroad but lack collateral. Repayment ability is assessed based on the co-applicant’s financial status, the student’s academic performance, and the course’s job prospects.
Difference Between Collateral and Non-Collateral Overseas Education Loans
| Feature | Collateral Loan | Non-Collateral Loan |
| Asset Requirement | Requires assets like property or savings as security | Does not require any security |
| Loan Amount | Usually offers a higher loan amount due to security | Usually offers a lower loan amount due to lack of security |
| Interest Rates | Lower interest due to the lesser risk | Higher interest due to the higher risk |
| Processing | More complex and time-consuming due to property evaluation | Simpler and less time-consuming |
Information Required
Student (Applicant)
- Full Name
- Contact Number
- Email Address
- Current Location (in India)
- Permanent Address (with Own/Rent)
- Current Address (with Own/Rent)
- Country of Study
- University/College Name
- Admission Status
- Estimated Course Fee (INR)
- Required Loan Amount (INR)
Co-Applicant
- Name
- Relationship with the applicant
- Mobile Number
- Occupation and Approximate Salary or CIBIL Score
Documents Required
Student (Applicant)
- PAN Card
- Aadhar Card
- Passport
- 10th & 12th Mark Sheets
- Individual Semester Mark Sheets (all semesters)
- Degree Certificate
- Consolidated Mark Sheet
- Entrance Exam Score Sheet
- Admission Letter
Co-Applicant
- PAN Card
- Aadhar Card
- Passport (not mandatory)
- Photo
- Bank Statement (Last 6 months)
- Last 2 Years ITR or Last 3 Months Salary Slip
- Proof of Own House (Electricity Bill or Latest Property Tax Receipt with Relationship Proof)
- Form 16 (Last 2 years) or Business Proof
Processing Time Taken
The time taken to process an online education loan for overseas studies mainly depends on the type of loan applied for. Unsecured loans typically get sanctioned within a week, and secured loans usually take up to 2 weeks or more.
How to Get an Online Overseas Education Loan without Collateral
- Fill out the online KYC form with the necessary information about the student and the co-applicant.
- Submit soft copies of all essential documents of the student and the co-applicant on time.
- Once the application is submitted, the lender bank or NBFC verifies the student and co-applicant profiles to determine the eligibility, financial position, course prospects and repayment capacity.
- The applicable loan amount is granted to the student.
Pro Tips to Keep in Mind while Applying
- Compare various lending institutions based on their interest rate, moratorium and repayment period, loan amount, loan tenure, processing fee, sanction time and abroad money transfer services before you apply.
- STEM courses have a high chance of loan sanction compared to other courses, as they offer better-paying job abroad.
- The political stability and the university ranking are considered by lender institutions.
- The co-applicant’s income and financial status are the key factors, and therefore, they must maintain a high CIBIL score.
- The academic performance of the student is evaluated to determine their future ability to complete the course and repay the loan.
Best Way to Get an Online Overseas Education Loan without Collateral
Having spent a decade in the field of overseas education remittances, we have noticed that many banks take advantage of students and their parents when it comes to loans. Common complaints from students included complicated documentation, time-consuming processing, high interest rates, restrictions on overseas money transfers, and exorbitant exchange rates.
This observation led to the creation of ExTravelMoney education Loans, which is dedicated to helping students achieve their dreams of studying abroad through a simple, online loan processing system.
ExTravelMoney education loans stand out from the rest due to several reasons:
- Compare different banks and NBFCs to give you the best loan provider available within your financial and course prospects
- Interest rates from 11.25% per year
- Loan tenures up to 15 years
- Unsecured loan for up to Rs 1 crore
- Simple online processing with minimal documentation
- Flexible repayment structure with a repayment moratorium option
- Obtain collateral-secured and non-collateral loans
Non-collateral education loans offer a convenient way to finance international education without risking family assets. Find tailored education loan solutions at ExTravelMoney along with complete financial support for studying abroad, including secure university fee transfers, travel insurance, and foreign currency purchases, all at unbeatable exchange rates.
Also Read: How to Send Money Abroad for Your Child’s Education
Ann Mariya Job is the Associate Content Writer at ExTravelMoney.com. Holding a Bachelor’s in Journalism, she excels in creating deeply researched, engaging, and crisp content. Her work helps readers understand the complexities of foreign exchange, overseas money transfers, and international travel.
