Education is one of the biggest investments for any student’s future. However, the cost of studying in India and abroad has risen significantly, making education loans a necessity. While many banks ask for collateral such as property or fixed deposits, students who do not own such assets often struggle.
That’s where loans for students without collateral come in. These loans are designed for bright students with confirmed admissions to reputed institutions. They make it possible to pursue higher education in India or abroad without financial burden on the family.
In this blog, we’ll cover:
- The best education loan without collateral options
- Leading banks and NBFCs offering these loans
- Eligibility and documents required
- Real-life examples and FAQs
1. Best Loan for Students Without Collateral in India
The best loan for students without collateral depends on the university, course, and the student’s academic record. Typically:
- Banks like SBI, Bank of Baroda, and PNB offer collateral-free loans up to ₹7.5 Lakhs under the Indian Banks’ Association (IBA) model scheme.
- NBFCs like HDFC Credila, Avanse, and InCred offer higher amounts without collateral, especially for reputed foreign universities.
2. Education Loan Without Collateral for Abroad Studies
For students going abroad, collateral-free loans are available up to ₹40 Lakhs (NBFCs) and ₹7.5 Lakhs (Public sector banks). These loans cover:
- Tuition fees
- Travel and visa expenses
- Accommodation costs
- Books, laptop, and insurance
3. SBI Education Loan Without Collateral
SBI offers Student Loan Scheme without collateral up to ₹7.5 Lakhs.
- Loan Amount: Up to ₹7.5 Lakhs (no collateral required)
- Tenure: 10–15 years
- Interest Rate: 9% – 10.5% p.a.
- Coverage: Tuition + living expenses + travel
4. HDFC Credila Education Loan Without Collateral
HDFC Credila specializes in loans for international universities.
- Loan Amount: ₹10 Lakhs – ₹40 Lakhs (no collateral)
- Tenure: Up to 15 years
- Flexible repayment during moratorium
- University tie-ups for faster disbursal
5. ICICI Bank Education Loan Without Collateral
ICICI provides collateral-free loans for premium institutes.
- Loan Amount: Up to ₹20 Lakhs
- Tenure: 10 years
- Interest Rate: 10% – 12% p.a.
6. Axis Bank Education Loan Without Collateral
Axis Bank is popular among students due to its flexible offers.
- Loan Amount: Up to ₹20 Lakhs without collateral
- Interest Rate: 10% – 13% p.a.
- Quick online approval
7. Bank of Baroda Education Loan Without Collateral
Under the Baroda Gyan Scheme, students can avail loans without security.
- Loan Amount: Up to ₹7.5 Lakhs (no collateral)
- Coverage: Fees, books, travel, laptop
- Interest Rate: ~9% – 10.5%
8. PNB Education Loan Without Collateral
PNB’s Udaan Scheme offers student loans without collateral.
- Loan Amount: Up to ₹7.5 Lakhs in India and abroad
- Special subsidy schemes for economically weaker sections
- Tenure: 10–15 years
9. Government Education Loan Schemes Without Collateral
The Government of India offers several schemes:
- Credit Guarantee Fund Scheme for Education Loans (CGFSEL) – ensures collateral-free loans up to ₹7.5 Lakhs.
- Padho Pardesh Scheme – interest subsidy for minority students.
- Dr. Ambedkar Central Sector Scheme – loans for economically weaker sections.
10. Education Loan for Indian Students Without Collateral
Indian students pursuing engineering, medical, law, and MBA courses in reputed institutes (IITs, IIMs, AIIMS) can get loans without collateral.
11. Education Loan for Studying Abroad Without Collateral
Top NBFCs provide collateral-free loans up to ₹40 Lakhs for students admitted to reputed universities in USA, UK, Canada, Australia, and Germany.
12. Education Loan Eligibility Without Collateral
Key factors include:
- Indian nationality
- Age: 18–35 years
- Confirmed admission in recognized institution
- Co-applicant with stable income (parent/guardian)
13. Education Loan Interest Rates Without Collateral
Typical range:
- Public Sector Banks: 9% – 11% p.a.
- Private Banks: 10% – 13% p.a.
- NBFCs: 11% – 15% p.a.
14. Education Loan EMI Calculator Without Collateral
Example calculation:
- Loan: ₹10 Lakhs
- Tenure: 10 years
- Interest: 10% p.a.
- EMI: ~₹13,200
15. Compare Education Loan Offers Without Collateral Online
Websites like BankBazaar, PaisaBazaar, UniCreds, and WeMakeScholars help compare offers from multiple lenders in real time.
16. Best Bank for Education Loan Without Collateral
For 2025, the best banks are:
- SBI (Low rates, up to ₹7.5 Lakhs)
- Bank of Baroda (Flexible repayment)
- ICICI/Axis Bank (Higher loan amounts)
- HDFC Credila (For abroad studies)
17. NBFC Education Loan Without Collateral in India
Top NBFCs:
- HDFC Credila
- Avanse
- InCred
- Auxilo
They offer higher loan amounts without collateral but at slightly higher interest rates.
18. Tips to Get Education Loan Without Collateral
- Apply with a strong co-applicant (parent/guardian)
- Choose reputed universities (higher chances of approval)
- Maintain good academic record
- Compare multiple lenders before finalizing
Case Studies / Examples
Example 1:
Ravi, an engineering student admitted to IIT Delhi, got a ₹7.5 Lakh SBI Student Loan without collateral. His father was the co-applicant.
Example 2:
Ananya secured admission to a UK university for MBA. She availed a ₹30 Lakh HDFC Credila loan without collateral, covering tuition, travel, and living expenses.
FAQs on Best Loan for Students Without Collateral
Q1. How much loan can a student get without collateral?
👉 Up to ₹7.5 Lakhs in public banks; up to ₹40 Lakhs in NBFCs.
Q2. Is collateral-free loan available for abroad studies?
👉 Yes, NBFCs like HDFC Credila and Avanse provide such loans.
Q3. Do I need a co-applicant for a loan without collateral?
👉 Yes, usually a parent or guardian with stable income.
Q4. Which bank is best for collateral-free education loan?
👉 SBI, Bank of Baroda, and HDFC Credila are top choices.
Q5. Is interest higher for collateral-free loans?
👉 Yes, because the lender’s risk is higher compared to secured loans.
Conclusion
The best loan for students without collateral in India 2025 depends on whether you are studying in India or abroad.
- For India: SBI, Bank of Baroda, and PNB are the best choices.
- For Abroad: HDFC Credila, Avanse, and InCred provide higher amounts without collateral.
📌 Pro Tip: Always compare interest rates, repayment terms, and EMI affordability before applying. Also, check for government subsidies to reduce your overall burden.
