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Unsecured Overseas Education Loan Comparison: A Detailed Guide

Over the years, the demand for overseas education has increased rapidly. More and more students are moving abroad to pursue their higher education. Keeping in mind that quality education requires a considerably high amount of money, students prefer to take education loans to fund their study expenses. Overseas Education Loan is broadly divided into two types: secured loans and unsecured loans. Depending on the profile, eligibility, and loan preferences the student can choose any of the following loan options.

Secured education loans require collateral security to pledge, but what if the applicant doesn’t have collateral security? Well in such a situation, the applicant can take an unsecured education loan, which is popularly known as a collateral-free loan. 

If you require an overseas education loan, then this article has got you covered with a comparative analysis of the types of financial institutions that provide unsecured overseas education loans. Let’s dive deeper into this article to know the details of this loan. 

Benefits of Taking Unsecured Overseas Education Loan

Before we move ahead with the comparison, let’s discuss the benefits of taking an unsecured overseas education loan. Among the several benefits, some of the leading ones are enlisted below. 

  • Faster loan disbursement
  • The loan application process is simple
  • Less documentation and paperwork required
  • A pre-admission loan is provided 
  • Up to 100% of funding is provided by NBFCs and International lenders

Considering that you are now aware of the benefits of taking an unsecured education loan, let us proceed to understand the detailed comparison between Private Banks, NBFCs, and International Lenders. 

A Detailed Comparison Between Private Banks, NBFCs, and International Lenders

Particulars

Private Banks

NBFCs

International Lenders

Quantum of Finance

Up to 50 Lakhs

Up to 50 - 60 Lakhs

Up to 75 Lakhs

Rate of Interest

12 - 15%

11-15%

9.50 - 16%

Loan Funding and Margin

85+15%

100% Funding

100% Funding

University List

Prime A, B, C

No List

List by Lender

Income Criteria

As per the income ratio of the loan co-applicant

As per the income ratio of the loan co-applicant

No income criteria required

CIBIL Score

Mandatory

Mandatory

Not required of co-applicant

Loan Tenure

15 years

10 years (including the course duration           

12 years

Processing Fees

1% + GST

1% + GST

2%/5% of the loan amount sanctioned

Processing Time

7-10 working days

8-10 working days

5-7 working days

Sponsors

Parents / Grandparents / Immediate Family

Parents / Grandparents / Immediate Family

Not Required

Serving Interest

Mandatory Full Simple Interest

Mandatory Simple Interest (either Full or Partial)

The type of Simple Interest depends on the lender. It can be full, partial, or no interest.

Moratorium Period

Course duration + 6 months

Course duration + 12 months

Course duration + 6 months

Expenses Covered

Expenses included are Tuition fees, Living expenses, Air ticket, laptops, books, and other study materials.

All kinds of required study expenses are covered.

Tuition fees and living expenses are covered. 

Loan Disbursement

The tuition fees are remitted to the university account and the living expenses are disbursed to the student’s bank account or forex card.

 

 

The loan amount is disbursed to the student’s or parents saving account or tuition fees may be directly remitted to the university account.

The tuition fees are directly disbursed to the university as per the fee structure provided by the university.

Living expenses are transferred to the student’s account if they are living in an off-campus accommodation.

As the differences are clearly mentioned above, if you want to get a non-collateral education loan for abroad, you can consider approaching any of the top financial institutions that are given below.

Top Financial Institutions that provide Unsecured Overseas Education Loans 

1. Private Banks

  • ICICI Bank
  • Axis Bank
  • IDFC First Bank

2. NBFCs

  • HDFC Credila
  • Avanse
  • Incred
  • Auxilo
  • Credenc

3. International Lenders

  • MPower Finance
  • Prodigy Finance
  • Leap Finance


Owing to the fact that you now know the different factors of these financial institutions that provide unsecured overseas education loans, you might be wondering which one will be the most suitable option for you and how to apply education loan for abroad studies. Well to find the right financial institution, expert loan advisors at ELAN can help you.

Deciding the right financial institution is as important as deciding which university or course you want to pursue. Since taking a loan is a long-term commitment and repaying the loan is equally important, you need to research comprehensively before you start your loan application. 

So, to clear the air of your doubts, loan advisors at ELAN will assist you with your entire loan application and disbursement process. Complete your entire loan process with ELAN in just 4 simple steps.

4-Steps of Loan Sanction Process with ELAN

Step 1 - Approach ELAN loan advisors In-Person or Online

Step 2 - Get your profile checked and know your loan eligibility

Step 3 - Proceed with documentation and loan application

Step 4 - Get your loan sanctioned and disbursed

Connect with ELAN experts and get your education loan successfully sanctioned!

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