Imagine standing on the cusp of a new chapter in life, the prospect of studying at a prestigious international university within your grasp. Yet, the looming shadow of financial constraints can often dim this bright future. Nonetheless, taking an education loan has been a great option to overcome this challenge.
While taking an education loan to fulfil this aspiration, traditionally banks require collateral as security. Collateral can be pledged as property or other significant assets. The mandatory need for security has been a formidable barrier for many aspiring students. However, the good news is that several Indian banks now offer collateral-free education loans with high loan amounts, making the dream of studying abroad more achievable.
Our latest article steps into the details of the top five Indian banks providing such education loans without collateral. Keep reading to find out more and plan your higher education funding without the weight of financial worry.
ICICI Bank is one of the largest private sector banks in India, renowned for its extensive range of financial services and products. Its exclusive loan scheme for ‘Premier Institutions’ offers a generous loan amount without the need for collateral.
Maximum Unsecured Loan Amount: ICICI Bank provides unsecured education loans up to INR 1 Crores for their Prime Listed Universities. It is one of the highest in the industry, ensuring that even high-cost courses are within reach.
Interest Rates: Interest rates for ICICI Bank’s unsecured education loans range from 10.50% to 11.25%.
Loan Processing Time: The bank has a quick processing timeline, usually between 10 to 15 working days.
Loan Tenure: The repayment tenure can go up to 15 years, involving the moratorium period.
Serving Interest during the Moratorium Period: For Prime Listed Universities there is an interest waiver option available during the moratorium period. For Non-listed Universities, it is mandatory to pay full simple interest.
ICICI Bank’s generous loan limits and swift processing make it a top contender for students seeking financial aid for international studies. Read on to know the next one.
IDFC First Bank brought in a one-of-a-kind scheme with Platinum Plus, Platinum, and Titanium List of Universities. It has quickly gained a reputation for its modern banking solutions and customer-first approach.
Maximum Unsecured Loan Amount: IDFC First Bank offers unsecured education loans up to INR 75 lakhs.
Interest Rates: Interest rates for these loans range from 11.75% to 13.25%, providing competitive financing options for students.
Loan Processing Time: The loan processing time is on average around 7 to 20 working days.
Loan Tenure: The loan tenure can extend up to 12 years, including the moratorium period.
Serving Interest during the Moratorium Period: For Platinum Plus, Platinum and Titanium category of Universities, paying partial simple interest is optional. For the Gold and Bronze categories of Universities, full simple interest or direct EMI has to be paid.
IDFC First Bank’s modern approach and flexible terms make it one of the best banks for education loans and a great option for students seeking a hassle-free education loan. Now, let’s check the loan details of the next bank.
Axis Bank is a leading private sector bank known for its innovative and customer-centric financial products. The bank's education loan schemes for collateral-free loans are designed to ease the financial burden for students aiming for global education.
Maximum Unsecured Loan Amount: Axis Bank offers unsecured education loans up to INR 75 lakhs for Prime Listed Universities.
Interest Rates: Interest rates for Axis Bank’s unsecured education loans range from 10.50% to 11.25%.
Loan Processing Time: The bank is known for its swift processing, usually taking about 20 to 25 working days to disburse the loan.
Loan Tenure: Axis Bank offers a repayment period extending up to 15 years.
Serving Interest during the Moratorium Period: It is mandatory to pay full simple interest.
With its substantial loan offerings and efficient processing, Axis Bank makes a compelling choice for students looking to study abroad without collateral. There’s another leading bank waiting for you, read ahead.
Yes Bank remains a strong contender in the private banking sector with its customer-oriented services. The bank’s education loan schemes are structured to support students’ ambitions without the need for collateral.
Maximum Unsecured Loan Amount: Yes Bank provides unsecured education loans up to INR 50 lakhs.
Interest Rates: The interest rates for Yes Bank’s unsecured education loans range from 11.50% to 13%.
Loan Processing Time: The bank typically processes loans within 7 working days, providing prompt financial assistance.
Loan Tenure: The loan tenure can go up to 15 years, excluding the moratorium period.
Serving Interest during the Moratorium Period: For Universities in Category A & B, paying partial simple interest is optional. For Universities in Category C, full simple interest needs to be paid and Universities in Category D will have to pay direct EMI.
Yes Bank’s student-friendly terms and efficient processing make it a great option for securing an education loan without collateral. But there’s one more leading option, read about it next.
Union Bank of India (UBI) is one of the oldest and most trusted public sector banks in India. With a strong commitment to supporting educational aspirations, the bank offers a unique scheme for study abroad loans.
Maximum Unsecured Loan Amount: UBI provides unsecured education loans up to INR 40 lakhs.
Interest Rates: The interest rates for these loans are competitive, they start from 9.75%. It can vary depending on the borrower’s profile.
Loan Processing Time: The loan processing time is quite efficient, generally it is processed between 7 to 15 working days.
Loan Tenure: The loan tenure can extend up to 15 years, including the moratorium period.
Serving Interest during the Moratorium Period: It is mandatory to pay full simple interest.
Union Bank of India stands out for its customer-friendly approach and flexible terms, making it a reliable financial lender in your educational journey.
Summing up this article, these are some of the top banks offering overseas education loans without the added stress of providing collateral. Choosing the right bank from these leading options can be overwhelming and hectic but an expert can make this process hassle-free.
Élan Overseas Education Loans is here to help. Our team of Experts will handle all the complexities of the application process. From understanding your loan preferences and education loan eligibility to managing documentation and applications, our Expert Loan Advisors will help you thoroughly.
All you need to do is share your details, sign the loan sanction agreement, and get ready to start your higher education at a leading study destination.
Reach out to us today and take the first move towards a brighter future free from financial worries!
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