Dreaming of studying in India or abroad but worried about collateral for an education loan? The good news is: You can get an education loan without pledging any property or asset.
In 2025, many Indian banks, NBFCs, and government-backed institutions provide collateral-free education loans up to ₹7.5 lakhs (and even more) based on academic merit and co-applicant income.
Let’s dive into the best education loan options without collateral, eligibility, interest rates, documents required, and more.
🏦 What Is a Collateral-Free Education Loan?
A collateral-free (unsecured) education loan does not require you to mortgage any asset like land, house, FD, or LIC policy.
Instead, your loan is sanctioned based on:
- Academic profile
- Institute ranking
- Co-applicant income
- Credit score (of student or co-borrower)
✅ Key Features of Education Loans Without Collateral
| Feature | Details |
|---|---|
| Loan Amount | Up to ₹7.5 lakh (India), ₹20–50 lakh (abroad for top institutes) |
| Interest Rate | 9% – 14% p.a. (depends on lender) |
| Repayment Period | Up to 15 years |
| Moratorium | Course duration + 6–12 months grace |
| Processing Time | 7–15 working days |
🔝 Top Banks/NBFCs Offering Education Loan Without Collateral (2025)
1. SBI Scholar Loan Scheme
- For select premier institutes (IITs, IIMs, NITs)
- No collateral for loans up to ₹40 lakhs
- Lower interest rates (8.50% approx.)
🔗 SBI Education Loan Info
2. HDFC Credila
- Loans up to ₹50 lakhs for reputed foreign universities
- Customised repayment & EMI holiday
- Requires co-applicant with stable income
🔗 https://www.credila.com
3. Axis Bank
- Up to ₹40 lakhs without collateral for select colleges
- Competitive interest rates
- Quick processing via online portal
🔗 https://www.axisbank.com
4. Avanse Financial Services
- Flexible loans for India & abroad
- Loans up to ₹40–50 lakhs with strong academic/co-applicant profile
- Covers full cost including travel/laptop/living
🔗 https://www.avanse.com
5. InCred Education Loan
- Loans for top Indian and international universities
- No collateral up to ₹40 lakhs (depending on course)
- AI-based approval for faster processing
🔗 https://www.incred.com
🎯 Eligibility Criteria for Collateral-Free Loans
- Indian citizenship
- Confirmed admission in recognized institution (India/abroad)
- Strong academic performance
- Co-applicant (usually parent/guardian) with stable income
- Valid KYC documents
📄 Documents Required
- Admission letter (with course fee details)
- Identity proof (Aadhaar/PAN)
- Address proof
- Academic records (10th, 12th, graduation)
- Income proof of co-applicant (ITR/salary slip)
- Passport (for study abroad)
💡 Government Scheme: Vidya Lakshmi Portal
Vidya Lakshmi is a government-backed loan portal where you can apply to multiple banks for collateral-free education loans.
🔗 https://www.vidyalakshmi.co.in
Top features:
- Apply to 3 banks with a single form
- Track application status online
- Used by SBI, Bank of Baroda, PNB, and more
💬 FAQs on Collateral-Free Education Loans
Q1. Can I get a ₹20 lakh loan without collateral?
Yes, if applying to a premier college or via NBFCs like HDFC Credila, Avanse, or InCred.
Q2. What happens if I fail to repay?
Co-applicant becomes liable. Default affects your and their credit scores.
Q3. What’s the moratorium period?
Usually course duration + 6 to 12 months after completion before EMIs start.
Q4. Is collateral required for studying abroad?
Not always. Many NBFCs offer collateral-free loans up to ₹40–50 lakhs for top foreign institutes.
🧠 Pro Tips to Improve Approval Chances
✅ Choose recognized & top-ranked institutions
✅ Maintain a good academic record
✅ Ensure co-applicant has steady income and CIBIL > 700
✅ Apply via Vidya Lakshmi or directly to education loan specialists
✅ Compare interest rates from at least 3–4 lenders
📌 Conclusion: Don’t Let Collateral Stop Your Education Dream
In 2025, education loans without collateral are a reality for deserving students — whether in India or abroad.
From SBI to NBFCs like InCred and HDFC Credila, there’s a funding option for every merit holder.
🎯 So go ahead — choose wisely, apply early, and invest in your future confidently.
Let me know if you’d like:
- A Hindi version of this article
- Integration with affiliate links or CTAs
- Comparison table with interest rates
I’d be happy to help you customize it.
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Hello friends, my name is Manoj Meena, and I’m a BA Final Year student. I have a deep passion for writing biographies because, in Hindi, there’s often a lack of detailed information about notable individuals. To bridge this gap, I collect extensive information and write biographies about popular personalities. I love sharing their stories and inspiring others through my work. You can also follow me on Instagram and Facebook to stay updated with my latest biographies and content. Connect with me to explore the fascinating lives of influential people!