Are you aware that a significant number of individuals aspiring to study abroad are unable to offer collateral as security for their education loans? Despite this, they remain determined to pursue their dreams and seek out lenders who offer education loans without the need for collateral. Numerous financial institutions, including private banks and non-banking financial companies (NBFCs), extend non-collateral education loans for overseas studies. This article is here to provide comprehensive information on this subject. 

Eligibility for education loan without collateral 

To be eligible for an education loan without the need for collateral, certain criteria must be met. While these requirements may vary among different lenders, some common factors include: 

● Co-Applicant Criteria: The co-applicant should possess a good credit score, often referred to as CIBIL, meet specific income prerequisites (typically ranging from 30,000 INR to 40,000 INR without financial commitments), and satisfy the lender's predefined criteria. 

● Test Results: Your performance in English proficiency and standardized tests such as IELTS, TOEFL, GRE, SAT, and others should meet or exceed the benchmarks set by your lender. This plays a vital role in the loan approval process. 

● Academic Record: Education loans without collateral place significant emphasis on your academic track record, using your past achievements to predict your potential future earnings. This factor is critical, especially in the absence of collateral requirements. 

● Selection of Country, University, and Course: It is essential to ensure that your chosen country, university, or college, and the selected course align with the lender's approved list for unsecured education loans for studying abroad. 

Lenders for education loan without collateral 

Now, turning our attention to the primary query – Which financial institutions offer unsecured education loans for studying abroad? It's crucial to recognize that not only banks but also non-banking financial companies (NBFCs) and international lenders offer education loans

without the need for collateral. Let's explore the various lenders that provide GyanDhan education loan without collateral for abroad studies. 

Required documents for education loan without collateral 

Here is a comprehensive list of the standard documents needed when applying for an education loan without collateral. 

Applicant document for non collateral education loan 

● Passport 

● Loan application form 

● Address proof - a recent copy of the telephone bill, electricity bill, or water bill ● Statement of expenses - the entire cost of education 

● Proof of admission - you can submit a conditional offer of admission as well

● Past academic record - 10th, 12th, undergraduate mark sheet, test scores of entrance tests like GRE, TOEFL, IELTS, etc. 

● Identity proof - PAN Card, Passport, Voter ID card 

● Loan account statement of one year, if there are any previous loans taken from any lender 

● Passport-size photographs 

Co-applicant documents for non collateral education loan 

● 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. 

If self-employed - 

● Last 2 years IT returns 

● TDS Certificate 

● Business address proof 

● Bank account statement for the last 6 months 

● Certificate of Qualification 

If salaried - 

● 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 

How to apply for an education loan without collateral? 

To initiate the process of securing an education loan without collateral, follow the steps below: 

● Assess Eligibility - Start by visiting GyanDhan's website or using their eligibility form to determine if you meet the criteria for obtaining a loan to study abroad without the need for collateral. Your eligibility is contingent on your academic background, gaining admission to a recognized foreign educational institution, and your financial circumstances.

● Apply with Assistance - A GyanDhan Education Loan Counselor (ELC) will assist you throughout the application process and provide a customized checklist. After submitting your application, the system will connect you with two lenders tailored to your specific situation. 

● Document Collection and Verification - Gather and submit the required documents, including academic and financial records. Lenders will evaluate your application by scrutinizing your admission details, financial information, and more. 

● Loan Approval - Upon approval from the lender, you will receive notification of the approved loan amount. If you are satisfied with the terms, you can proceed by signing the agreement, and the necessary funds will be disbursed to you. 

Benefits of education loan without collateral 

Opting for an unsecured education loan for international studies comes with several advantages. Here's a breakdown of what you can expect: 

● Simplified Documentation: Non-collateral loans involve a much simpler documentation process when compared to secured loans. You'll only need to provide easily manageable documents. 

● Institution Flexibility: While many lenders typically have specific lists of universities, colleges, or courses they support with education loans, several now offer unsecured education loans for studying abroad with a broader range of options. This means you have the freedom to study wherever you prefer. 

● Co-Applicant as a Feasible Option: If you have a suitable co-applicant willing to assist you, there's no need to worry about providing collateral. Your co-applicant should have a strong credit history that meets the lender's requirements, and they can serve as an alternative to collateral. 

● Comprehensive Expense Coverage: Non-collateral education loans often offer substantial amounts that cover all your expenses for studying abroad. If your application profile is strong and your loan amount falls within the lender's maximum limit, most of your costs are covered. 

If you find yourself uncertain or have any inquiries, feel free to reach out to GyanDhan. We are here to assist you in understanding the loan process and finding the perfect lender for your

specific situation. Just assess your loan eligibility with us, and we will happily lead you through each step of the procedure.