Thousands of students go abroad for good education. But study abroad The burden of the cost of education often breaks the dreams of the students, but the work of reducing this cost is easily done by the education loan and many dreams come true. Realizing this need, many institutes are now trying to cooperate with the students of every category. Education loan without collateral is such a loan, in which those students also get people. Who do not have assets to offer as collateral. With this, it becomes easier for students from economically weaker sections to avail education loans.
Benefits of education loan
With changing times, education is becoming costlier and higher education is no exception. That’s why it has become very difficult for common Indian families to go abroad for higher education. To meet the needs of such people, financial institutions have come up with various types of education loans. Here are some of the benefits of taking an education loan:
- education loan Don’t let your savings dwindle. With these you can keep your savings safe for future works like retirement and marriage etc.
- Education loans usually cover up to 90 percent of the total expenditure on education. This expense includes tuition fees, books, travel, project, library, uniform, examination expenses, etc.
- Management of education loan inculcates discipline among students regarding money.
- You can also declare unlimited tax deduction on interest. Which you have paid for 8 years under section 80E of the Income Tax Act.
Education Loan Without Collateral
Like any normal loan, banks also ask for collateral for education loan as the security of the amount, so that if the loan payment is stopped due to any reason, then these collaterals can be used by the company to recover the amount. Collateral includes many things, such as a property, land, house, fixed deposit and insurance corpus etc. Education loan which does not require any such collateral, they are called education loan without collateral, education loan without collateral or unsecured education loan. Most of the times the interest rate in such loans is very high or the repayment process is very strict.
Eligibility for Education Loan
Knowing about eligibility for education loan is as important as it is for this loan documents gather. The mode of repayment, interest rate and upper limit may vary from bank to bank but some general terms are same everywhere. So let’s take a look at some of the basic rules of eligibility for an education loan:
- The candidate must be a citizen of India.
- There should also be a co-applicant with the student. The co-applicants can be your parents, siblings or even husband and wife.
- Collateral becomes necessary for loans above Rs 7.5 lakh.
- The academic record of the student should be very good.
- The student must have secured admission in any recognized university or foreign college.
education loan list
We have compiled a list of the best education loan banks in India that can help you land the university of your dreams.
Types of Education Loan
There are many different types of educational loans offered by Indian banks, which are given for different types of education programs. Depending on your course, student loans for diploma and certificate courses, student loans for skill-based courses, student loans for studying abroad are available.
Education loan based on location
- Domestic Education Loan – This loan is given only for studying in a college or university located within the geographical limits of the country.
- Education loan for studying abroad – It is given for studying abroad.
Course Based Educational Loan
- higher education loan
- Diploma Study Loan
- Loan for Professional Courses
Education loan against the security of collateral or guarantee
- secured loan
- unsecured loan
no collateral or security
There are many types of loans available without collateral, as many people do not have security. Many institutions of the country give education loan without collateral. If you also want such a loan, then you have to keep a few things in mind.
- If you are taking a loan up to 4 lakhs from a government bank, then you will not have to give any collateral
- According to the rules of RBI, if all the criteria are being met, then all the banks in the country will have to give education loan without collateral up to Rs 7.5 lakh.
- Those who want to take a loan of more than Rs 7.5 lakh, they will have to approach private or NBFCs. Because these institutions give loans up to 50 lakh rupees without collateral Education Loan Without Collateral.
Education loan without collateral
- Application Form Submission: It can be submitted both online and offline.
- General Documents:
- passport photo
- Address proof
- photo ID
- Educational Qualification Certificate:
- 10th and 12th marksheet
- Graduation mark sheet (if applicable)
- Admission Proof: This is an official offer of admission, which states that the student has been admitted to the university. In this, along with the deposit required for the seat, it is also told about the conditions necessary for this offer to be given.
- Last 8 months bank statement of co-applicant
- Income certificate of co-applicant
- Collateral information (if any)
collateral related documents
Generally, the following documents (Education Loan Documents in Hindi) are demanded from the applicant for the collateral category-
loan against deposit
- Original Receipt of Recurring Deposit / Fixed Deposit
- Recurring Deposit / Fixed Deposit Interest Statement
Loan Against Immovable Property (Property/House/Land)
- Tax statement of current property with maintenance bill/tax
- Sale Deed / Property Deed
- NOC from Society/Builder
- Allotment letter from the municipal corporation or any other government authority
Loan Against Securities/Shares & Debentures
- pan card copy
- D-mat account statement
Options to take education loan without collateral
Here are the best options for taking education loan without collateral in 2021-
Incred Financial Services ,Incred Financial Services, is a non-banking financial corporation, which is affiliated to the Reserve Bank of India (Reserve Bank of India) is registered with. This institution gives education loan up to Rs 40 lakh without collateral, education loan without collateral. Incred covers 700 universities in many countries such as Canada, France, Netherlands, USA, Germany, Singapore, Ireland and Australia.
auxillo (Auxilo) provides loan for studies abroad according to the need of the applicant. This unsecured loan also offers Education Loan Bina Collateral Ke, which is assessed on the basis of the student’s skill and ability. At this time, certain factors like university admission, past records and test scores etc. are looked at. There are no conditions placed by the company regarding the upper limit of the loan and expenses.
HDFC Credila Education loan without collateral can be taken for education loan of less than Rs 20 lakh. HDFC Credila is an HDFC Limited Company, which is one of the first few education loan companies in India. It gives 100% loan cover with no margin money. It also comes with a 10 year payout period and other conveniences.
KC Mahindra Scholarship for Masters Study Abroad
This K C Mahindra Education Trust It is a competitive scholarship scheme run by the University for postgraduate students. As an award, those students who have got admission in foreign universities get interest free loan scholarships education loan without collateral.
wealth of knowledge
knowledge wealth (Gyandhan) is an educational institution, which acts as a market for students and their associated lenders. They also have partnerships with many financial institutions. Education Loan Without Collateral For students seeking education loan without collateral, GyanDhan helps in assessing the factors like interest rate charges, repayment structure, margin money, hidden fees. It does not charge for any service.
Avanse is an education-focused non-banking financial company, which provides Education Loan Without Collateral to students to study in more than 100 universities in 40 countries around the world. It provides students with 100 per cent tuition fee coverage, boarding and lodging expenses and partial travel expenses. A thorough due diligence is done before approving these loans.
launched 11 years ago Prodigy Finance is an international education financing company, which provides loans to students for pursuing post graduate education abroad. This is a special company, which focuses only on education loan education loan without collateral. It takes into account the admission offer and future earning potential to calculate the loan.
Punjab National Bank Pratibha Education Loan
It is only for those meritorious students who want to pursue higher education from good institutes in India. PNB Bank Pratibha Scheme is offered to such students who want to pursue business, engineering, medical or any other course. To them, this bank gives education loan without collateral of less than 4 lakh rupees. Students have to pay this loan within 15 years and it is also necessary for parents to be co-applicants in this loan.
SBI Loan for Vocational Education and Training
This scheme is best for those students who want to make a career by doing a course in vocational field. If the duration of the course is less than 6 months, then students can get loan up to Rs.50000. If the same course is of 1 year or more duration, then this amount can be up to Rs 1 lakh. There is no process charging in this scheme and parents can be co-borrowers.
Axis Bank Education Loan
It is best for those students who want to take education loan without collateral to study abroad. Such students can take loans up to Rs 4 lakh without margin and collateral. The applicant should know that the requirement of collateral in this scheme is optional and subjective. Collateral is sought only if there is no job security after studies and there may be payment problems.
Leveraged Finance Education Loan
You Leveraged Finance You can also get education loan according to your course and university to study abroad with the help of .
education loan calculator
Education loan calculator lets you know how much money you will have to pay as EMI every month. In this calculator, you have to enter the loan amount, interest rate and loan tenure. After this this calculator will tell you how much EMI you will have to pay. You will also get to know how much interest you will have to pay in total.
You can take a loan from any of the government or private banks, it depends on how much loan you want and at what interest rate. You can take a loan from that bank which fulfills the condition.
The interest rate of each bank is different like PNB’s 9.45-11%, SBI’s 10.50%(0.50% less for girls), BOI’s 10.90%, HDFC’s 14% etc.
The time period to repay the loan varies from bank to bank. But normally the loan has to be repaid in 15 years.
You can generally get a loan from 20 lakh to 1 crore. Apart from this it also depends on your document.
Education Loan Without Collateral Education Loan Bina Collateral Ke is a unique initiative of 21st century, which is helping thousands of students to fulfill their dreams. If you want to study abroad, Leverage Edu 30 minutes free session with experts 1800 572 000 Book by calling.