How Can Indian Students Study Abroad with Education Loan Without Security?

India has an excellent education system that helps young students grow and develop in the academic sphere as well as in terms of personal growth. However, Indian students are also knowledgeable about the education system abroad, which often makes them dream of studying abroad in foreign countries.

This is a perfect dream to have, and most young students will work very hard to make this dream come true. However, it is also important to note that simply obtaining very high marks will not help young students achieve this dream. It is also essential to have a financial backup. 

Gaining an education abroad can be a costly affair. Just a few examples of what kind of numbers you can run into if you wish to study abroad are: 

• Opting for an MS in the United States of America can cost anywhere between $65,000 to $70,000 (Rs.46,34,012.5 to Rs.49,90,475)
• Tuition fees for undergraduate degrees in the United Kingdom are anywhere between £10,000 to £38,000 (Rs.9,35,635.31 to Rs.35,55,414.19)
• An undergraduate bachelor degree in Australia can cost you anywhere between A$15,000 and A$33,000 (Rs.7,32,030.45 to Rs.16,10,466.99 )
• The average tuition fees for an undergraduate course if you are studying in Canada can run you about CA$6,000 (Rs.3,25,697.75)

In reality, many students are just not able to afford tuition fees along with the cost of living abroad. This discourages many capable young Indian students from applying to colleges and universities abroad. However, here is where an education loan comes in. 

What is an Education Loan?

There are several banks which will offer you an education loan which can help you not only pay for your tuition fees, but also the various examination fees, cost of books and study material, course-specific equipment like computers and laptops, travelling costs, accommodation costs, and other course-related expenses which you may incur during your stay abroad. 

Eligibility to Apply for an Education loan:

There are several eligibility criteria that the student has to fulfil to qualify for a student loan. These are as follows: 

1. He or she must be a resident of India.
2. He or she must have a confirmed admission in a prestigious and reputed institute abroad.
3. The student must be within the age limit of 18 to 35 years at the time of submission of the loan application.
4. Offer letter from the college or university where the student has been admitted into, and specifying the terms and conditions of the admission.
5. The student should be undergoing either a PG Diploma, a graduate or a postgraduate course in India.
6. The student should have completed all the KYC formalities such as valid Passport, PAN, Aadhaar Card, etc. 
7. A student pursuing a full-time degree abroad should have a co-applicant who can either be a parent, a guardian, a spouse or a parent-in-law.

Several banks in India offer student education loans for students who wish to study abroad. These loans can be taken for up to an amount of Rs.20 lakhs. However, typically, when a student applies for a loan with a credit limit crossing Rs.7.5 lakhs, the bank will serve as for the deposit of an asset known as collateral or security. 

The problem here is, collaterals can become a risky business, and many people often feel uncomfortable about the thought of taking a loan against their assets. This is why many people are looking for an education loan to study abroad without security. 

How to Get an Education Loan to Study Abroad Without Security?

Typically, most banks will offer a loan amount of Rs.4 lakhs to Rs.7.5 lakhs without collateral or security. However, as the amount exceeds this limit, a security deposit is required. 

For those who are looking to get an education loan without security, here are a few options to consider:

• Private lenders or non-banking financial companies (NBFCs) often offer collateral-free loans for higher amounts. However, the interest rates for these loans will be slightly higher than those which are taken with collateral. Example: Auxilo, Credila, Avanse, and Incred.
• There are a few reputed banks which offer education loan without security. You can research these banks, their policies, and the terms and conditions and choose from them. 
• HDFC Bank 
• HSBC
• IDBI Bank
• State Bank Of India
• Another option that you have is to apply for an education loan that falls within the collateral-free slab. This slab can be anywhere between Rs.4 lakhs to Rs.7.5 lakhs, depending upon which bank you choose to take the loan from. 

The Process to Apply for an Education Loan Without Security

1. It is essential for the student, who is the main borrower of the loan, to also have a co-applicant in the form of a parent, a guardian, a spouse or a parent-in-law.
2. Appropriate documents such as salary slip, income tax returns, and other such documents of the co-applicant.
3. Depending upon the bank you choose, there might be certain restrictions on the age limit. Be sure to check these terms and conditions properly and research the different banks before choosing one.
4. You will have to submit the admission letter of the college or university where you have been accepted. You also need to submit the documents for the fee structure of your course. Finally, you may also be asked to submit the results of your class 10, class 12 and graduation mark sheets (whatever is applicable).
5. Age proof, residence proof, identity proof, and income proof is also required.
6. All of these documents will be thoroughly verified, after which you can find out if you are eligible for the student loan or not.
7. After the loan is sanctioned to you, you are required to sign necessary documents, but make sure that you go through everything with a fine-toothed comb before you sign or agree to anything.

Documents Needed for the Application of Educational Loans:

1. Examination certificate for the last qualifying exam in school or graduate studies in India.
2. Proof of admission
3. Schedule of course expenses
4. Copy of letter of scholarship confirmation (if any)
5. Copy of permit for Foreign Exchange (if any)
6. 2 Passport-sized photographs
7. Bank account statement for the last six months
8. At least two years of Income Tax assessment order
9. Brief Asset and Liability statement
10. Non-existing customers of the bank – proof of identity and residence

The process of applying for an education loan without security can be a long one. However, it will help you finally fulfil your dream of getting a good education abroad with all the financial aid that you need. 

Scholarships For Indian Students to Study Abroad

Besides education loan, Indian students can also apply for scholarships to study abroad. There are several types of scholarships, which are open to all Indian students to study abroad.

UK Government Chevening Scholarships, 2020-2021

Chevening offers a unique opportunity for future leaders, influencers, and decision-makers from all over the world to develop professionally and academically. Applicants must have an undergraduate degree that will enable you to gain entry to a postgraduate program at a UK university. The scholarships are providing fully-funded opportunity.

Provided By:  UK Government
Course:  Postgraduate level
Award:  Fully-funded
Apply Now

Palgrave Brown Scholarship for International Students at Oxford University

Highly motivated aspirants from individual countries are invited to apply for the Palgrave Brown Scholarship for International students at the University of Oxford. Scholarships will be awarded on the basis of financial need to pursue the undergraduate degree coursework at the university. The grant will provide an annual grant of at least £12,158 towards living costs.

Provided By: University of Oxford
Course:  Undergraduate
Award: £12,158 towards living costs
Application Deadline: February 12, 2020 
Apply Now

International Scholarships at Berlin Institute of Technology

Berlin Institute of Technology is inviting candidates to apply for the scholarships for the academic year 2020-2021. The grant is open for those brilliant candidates who will commence in the undergraduate and postgraduate degree coursework at the institute. Each successful scholar will get the educational fund for their studies.

Provider: Berlin Institute of Technology
Course: Undergraduate and postgraduate
Award: Educational fund
Application Deadline: Open for 2020 entry
Apply Now

International Scholarships at the European University Viadrina

For providing financial support to the deserving candidate, the European University Viadrina is offering scholarships for the academic year 2020-2021. The studentship is open for studying the undergraduate degree coursework at the university. Each winning candidate will get the educational fund for their studies.

Provider: European University Viadrina
Course: Undergraduate
Award: Educational fund
Application Deadline: Open
Apply Now

Global Scholars Award for International Students at University of Oregon

The University of Oregon is now accepting applications for Global Scholars Award for International Students for the academic year 2020-2021. The bursary is available for international students who are enrolling in the undergraduate or postgraduate degree program at the university in the US. The award provides financial support up to $45,000 for the students.

Provider:  University of Oregon
Course: Undergraduate or postgraduate
Award: $45,000
Deadline: March 1, 2020
Apply Now

Academic Scholarships for International Students at Oklahoma Baptist University, USA

Oklahoma Baptist University is warm welcoming applications for the academic programs to outstanding students from around the world. The award is accessible for international students who wish to undertake bachelor’s degree coursework at the university. There are varies the number of awards is available.

Provider:  Oklahoma Baptist University
Course: Undergraduate
Award: Varies
Deadline: Open for 2020-21 academic year
Apply Now

Top Ten Universities for Study Abroad

Ranking	University Name	Tuition fee
1	Massachusetts Institute of Technology (MIT)	48,452 USD
2	Stanford University	47,940 USD
3	Harvard University	47,074 USD
4	University of Oxford	9,250 GBP
5	California Institute of Technology (Caltech)	47,577 USD
6	ETH Zurich (Swiss Federal Institute of Technology)	1,229 CHF, International tuition 1,229 CHF
7	University of Cambridge	9,250 GBP, International tuition 21,732 GBP
8	UCL (University College London)	Domestic tuition 9,250 GBP, International tuition 17,710 GBP
9	Imperial College London	Local tuition 9,250 GBP
10	University of Chicago	53,649 US