Studying abroad is a dream for many Indian students. But this dream often comes with a high cost — tuition fees, living expenses, and travel costs. To support students financially, many Indian banks and lenders provide education loans.
The good news is that several banks now offer education loans without collateral for studying abroad. Let’s explore which bank gives education loan without collateral for abroad, what are the eligibility rules, interest rates, and how you can apply successfully.
🎓 What Is a Collateral-Free Education Loan?
A collateral-free education loan (also called unsecured education loan) means you don’t have to mortgage property, land, or any valuable asset to get the loan.
In this type of loan, the bank gives money based on:
- Your academic profile
- The reputation of your university/course abroad
- The financial background of your co-applicant (usually a parent or guardian)
- Your future earning potential
💡 Why Choose an Education Loan Without Collateral?
Here are a few reasons students prefer unsecured loans:
- 🏠 No need to mortgage family property or assets.
- 💰 Quick processing since valuation of property is not required.
- 📄 Less documentation and faster approval.
- 🌎 Helps students from middle-class families study abroad.
However, unsecured loans may have:
- Slightly higher interest rates, and
- Smaller maximum loan amounts (usually up to ₹40–₹75 lakhs).
🏦 Which Bank Gives Education Loan Without Collateral for Abroad?
Below are the best Indian banks and NBFCs (Non-Banking Financial Companies) that provide education loans without collateral for studying abroad.
1️⃣ ICICI Bank
ICICI Bank is one of the leading private banks offering unsecured loans up to ₹75 lakhs for higher education abroad.
Key Features:
- Loan amount: Up to ₹75 lakhs (no collateral)
- Interest rate: Around 10.50% – 11.25% p.a.
- Processing time: 10–15 days
- Repayment tenure: Up to 10 years
- Margin money: 0% (for select universities)
Eligibility:
- Student must have a confirmed admission offer.
- Co-applicant’s income and CIBIL score should be good.
- University should be on ICICI’s Premier Institution List.
Example:
If you take a ₹40 lakh loan at 10.75% interest for 10 years,
your monthly EMI ≈ ₹54,400 (using standard EMI formula).
2️⃣ Axis Bank
Axis Bank provides education loans without collateral for recognized universities and courses abroad.
Key Features:
- Loan amount: Up to ₹75 lakhs
- Interest rate: 11% – 12.5% p.a.
- Repayment: Up to 15 years (including moratorium)
- No margin money for top universities
Special Advantage:
Axis Bank has a Prime University List (like US, UK, Canada, Australia). If your university is listed, your loan approval is faster.
Example:
If a student borrows ₹50 lakhs for an MS in the USA,
and starts paying after 2 years, the total repayment can be around ₹82–₹85 lakhs (including interest).
3️⃣ IDFC FIRST Bank
IDFC FIRST Bank offers collateral-free education loans up to ₹75 lakhs for premier institutions.
Key Features:
- Loan amount: Up to ₹75 lakhs
- Interest rate: 10.85% – 11.75%
- Repayment: Up to 15 years
- Moratorium: Course period + 12 months grace
Eligibility:
- Admission to approved universities abroad.
- Co-applicant must have stable income.
- Student’s academic performance is important.
Tip: The bank has a “Platinum List” of universities where approval is faster and easier.
4️⃣ Union Bank of India (UBI)
Union Bank of India offers education loans without collateral under the Union Education Scheme.
Key Features:
- Loan amount: Up to ₹40 lakhs (no collateral)
- Interest rate: 9.75% – 10.50% p.a.
- Processing fee: Nil for study abroad
- Repayment tenure: Up to 15 years
Example:
If you borrow ₹30 lakhs at 10% interest for 10 years,
your EMI will be around ₹39,600 per month.
Note: For higher loan amounts (above ₹40 lakhs), collateral may be required.
5️⃣ State Bank of India (SBI) – Global Ed-Vantage Loan
Though SBI’s Global Ed-Vantage usually needs collateral, the bank also provides collateral-free loans up to ₹7.5 lakhs under the SBI Student Loan Scheme and up to ₹50 lakhs for certain reputed foreign universities with co-applicant support.
Key Features:
- Loan amount: Up to ₹50 lakhs (without collateral, select universities)
- Interest rate: 9.90% – 10.90%
- Repayment: Up to 15 years
- Moratorium: Course period + 6 months
Example:
For a ₹25 lakh loan at 10% interest for 10 years, EMI ≈ ₹33,000.
6️⃣ YES Bank
YES Bank also provides unsecured loans for studying abroad for select courses.
Key Features:
- Loan amount: Up to ₹50 lakhs
- Interest rate: 10.5% – 11.75%
- Processing fee: 2% of the loan amount
- Flexible repayment options
Eligibility:
- Student must be pursuing full-time course abroad.
- Co-applicant’s income and credit score are key factors.
7️⃣ NBFCs Offering Unsecured Education Loans
Several NBFCs (Non-Banking Financial Companies) specialize in education loans and are more flexible compared to banks.
| NBFC Name | Max. Loan Amount | Interest Rate | Highlights |
| HDFC Credila | ₹60–₹75 lakhs | 11%–12.5% | Loans for top global universities |
| Avanse Financial | ₹75 lakhs | 11%–13% | Covers 100% study cost (tuition + living) |
| InCred Finance | ₹60 lakhs | 11%–13% | Fast approval for reputed universities |
| Auxilo Finserve | ₹60 lakhs | 11.5%–13% | 100% funding with flexible EMIs |
Example:
If Avanse provides ₹50 lakhs for 10 years at 12% interest,
monthly EMI ≈ ₹72,000.
Though NBFC rates are a bit higher, the loan approval process is much faster.
🌐 International Lenders (No Co-applicant or Collateral Required)
If your parents don’t have a strong income or property, international education lenders can be a great option.
| Lender | Collateral | Co-applicant | Loan Amount | Key Regions |
| MPOWER Financing (USA) | ❌ No | ❌ No | Up to USD 100,000 | US & Canada |
| Prodigy Finance (UK) | ❌ No | ❌ No | Up to USD 100,000 | 850+ universities |
These lenders decide based on your university, program, and future earning potential, not on family income or assets.
Example:
If Prodigy offers a $50,000 loan for an MS program at 11% interest,
you’ll repay about $83,000 over 10 years.
📊 Comparison Table: Banks Without Collateral for Abroad Studies
| Bank/NBFC | Max Loan (₹) | Interest Rate (p.a.) | Collateral | Co-applicant | Tenure |
| ICICI Bank | 75 Lakhs | 10.5%–11.25% | ❌ | ✅ | 10 yrs |
| Axis Bank | 75 Lakhs | 11%–12.5% | ❌ | ✅ | 15 yrs |
| IDFC FIRST | 75 Lakhs | 10.85%–11.75% | ❌ | ✅ | 15 yrs |
| Union Bank | 40 Lakhs | 9.75%–10.5% | ❌ | ✅ | 15 yrs |
| SBI | 50 Lakhs | 9.9%–10.9% | ❌ (select) | ✅ | 15 yrs |
| YES Bank | 50 Lakhs | 10.5%–11.75% | ❌ | ✅ | 15 yrs |
| HDFC Credila | 75 Lakhs | 11%–12.5% | ❌ | ✅ | 15 yrs |
| MPOWER | $100,000 | 11%–13% | ❌ | ❌ | 10 yrs |
🧾 Documents Required
- Admission letter from university
- Passport & visa proof
- Co-applicant’s income proof (salary slips, ITR)
- Academic records (marksheets, degree)
- Fee structure from university
- Bank statements (6–12 months)
📉 Example: Cost Breakdown for Studying Abroad
Let’s take an example for clarity.
Student Name: Aditi
University: University of Toronto, Canada
Course Duration: 2 years
Total Expenses:
- Tuition fees: ₹30 lakhs
- Living expenses: ₹15 lakhs
- Travel + Insurance: ₹2 lakhs
Total = ₹47 lakhs
If Aditi gets a ₹45 lakh loan from ICICI Bank at 10.75% interest for 10 years:
- EMI ≈ ₹61,000 per month
- Total repayment ≈ ₹73 lakhs
- Total interest ≈ ₹28 lakhs
This shows how important it is to compare interest rates before choosing a lender.
💬 Tips to Increase Loan Approval Chances
✅ Maintain good academic performance.
✅ Apply early (2–3 months before visa process).
✅ Choose a reputed university from the bank’s approved list.
✅ Keep co-applicant’s financial documents updated.
✅ Compare interest rates and repayment options from multiple banks.
🌟 Conclusion
Getting an education loan without collateral for abroad is now easier than ever. Leading banks like ICICI Bank, Axis Bank, IDFC FIRST, Union Bank, YES Bank, and SBI, along with NBFCs and international lenders, provide flexible options for students.
Always compare interest rates, repayment terms, and eligibility before applying.
Remember, your education is an investment — choose the right financial partner who supports your global dreams without adding unnecessary burden.