Best Banks for Education Loan Abroad Without Collateral in 2025
With the rising number of Indian students opting for higher education abroad, the need for collateral-free education loans has seen a significant surge. Many banks and NBFCs in India now offer education loans without demanding any collateral or third-party guarantee, especially for meritorious students accepted into top international universities.
Here’s a comprehensive look at the top banks and financial institutions offering unsecured education loans for studying abroad in 2025:
🔹 Top Banks/NBFCs Offering Education Loans Without Collateral
1. State Bank of India (SBI) – Global Ed-Vantage
Loan Amount: Up to ₹7.5 lakhs without collateral (more for top universities via SBI Scholar scheme)
Interest Rate: Starts at 9.5% p.a.
Processing Time: 10–15 working days
Repayment Tenure: Up to 15 years
2. HDFC Credila (NBFC)
Loan Amount: Up to ₹40 lakhs without collateral for selected universities
Interest Rate: 11–13% p.a. (varies)
Special Feature: Customized loans based on the university/course
Approval: Pre-admission loan approval available
3. ICICI Bank
Loan Amount: Up to ₹40 lakhs without collateral
Interest Rate: 10.5–12.5% p.a.
Processing Time: 7–10 working days
Eligibility: High-ranking foreign university and strong academic background
4. Axis Bank
Loan Amount: Up to ₹40 lakhs without collateral (depends on university profile)
Interest Rate: Starts from 11.5%
Special Benefit: Quick sanction and flexible moratorium
5. IDFC FIRST Bank
Loan Amount: Up to ₹25–30 lakhs
Interest Rate: 10–12% (floating)
Repayment: Up to 12 years
✅ Why Choose an Unsecured Education Loan?
No Property or Assets Required
Faster Approval Process
Ideal for Students from Middle-Class Families
High Funding for Premier Institutes
✍️ Eligibility Criteria (General):
Indian nationality with confirmed admission abroad
Good academic track record
Co-applicant with regular income
Acceptance in recognized universities (preferably top 500)
📈 Vizzve Finance Insight:
This blog has gained attention on Google Trends (July 2025) as more students and parents are actively searching for "study abroad loan without property" and **"education
📌 Frequently Asked Questions (FAQ)
❓ Which bank gives education loans without collateral for studying abroad?
Several banks like State Bank of India (SBI), ICICI Bank, Axis Bank, and NBFCs like HDFC Credila and Avanse offer education loans without collateral, depending on the university and
course.
❓ What is the maximum loan amount I can get without collateral?
Most banks and NBFCs offer up to ₹7.5 lakhs without collateral, but for top universities abroad, NBFCs can provide up to ₹40 lakhs without collateral.
❓ Is it possible to get an education loan without a co-applicant?
No, a co-applicant (usually a parent or guardian) with a stable income is mandatory for unsecured education loans, even if collateral is not required.
❓ What is the interest rate for unsecured education loans?
Interest rates typically range from 10% to 13.5% per annum, varying by lender and your academic/institution profile.
❓ How can I improve my chances of getting an education loan without collateral?
Get admission into a top-ranked foreign university
Maintain an excellent academic record
Have a financially strong co-applicant
Choose high-employability courses (STEM, MBA, etc.)
❓ How long does it take to process an education loan?
Unsecured loans are usually processed in 7–15 working days, depending on the bank or NBFC and completeness of documents.
❓ Are there any tax benefits on education loans?
Yes, under Section 80E of the Income Tax Act, the interest paid on education loans is tax-deductible for up to 8 years.
❓ Do I need to start repaying the loan immediately?
Most lenders offer a moratorium period – repayment begins 6 to 12 months after course completion or employment.
Published on:July 23,2025
Published by :Selvi
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed