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Education Loan

No property? No problem: Study abroad loans without collateral explained

10 Jun 2025 by Team FinFIRST

education loan without collateral

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Studying abroad is aspiration for many—but let us be honest, it can be costly. Although most students aspire about attending elite universities around the world, something that usually keeps them from doing so is the fear of organising funds—particularly if you do not own property to use as security or a co-applicant to guarantee your loan.

But here’s the best part: you can still get an education loan without collateral to support your global studies. In fact, more banks and NBFCs are now increasingly offering study abroad loans without collateral, making global education more accessible than ever.

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So, what exactly is a loan without collateral?

In simple words, a collateral-free loan implies that you do not have to mortgage anything—no house, no land, no fixed deposits. Your loan is sanctioned depending on your academic studies, admission letter, and future prospects.

At IDFC FIRST Bank, for example, students can take up to ₹75 lakhs without mortgaging any collateral if they fulfil the minimum eligibility conditions.

Who's eligible for these loans?

To procure an education loan for foreign studies without collateral, you typically must:

Be an Indian citizen (NRIs are also eligible).
Provide relevant documents such as your letter of admission, academic credentials, and entrance exam results (GRE, IELTS, GMAT, etc.).

Even if you have not yet been admitted, you can get a pre-admission sanction; thus, you are all set from a financial standpoint when the letter of offer is delivered.

Your academic merit is your strongest collateral. Let your potential—not your property—fund your education.

What makes these loans so student-friendly?

One of the best parts about opting for an international education loan without collateral is how flexible it can be—not just in terms of approval, but also repayment. With lenders like IDFC FIRST Bank, you are not just getting funds; you are getting options.

Flexible modes of repayment:

You get to decide how you wish to repay according to what is best for you.

- Begin paying EMIs right away if you prefer to pay the loan sooner.

- Pay just the simple interest while you study and pay for the rest afterward.

- Avail a moratorium period where you pay nothing throughout your course and grace period— ideal if you want some time to settle down after studying.

Interest rate and tenure:

The interest rate is competitive, and the loan duration goes up to 15 years, so it is less of a burden on your monthly budget during repayment.

What else is paid for?

When you take an education loan for abroad studies without collateral, not only is the tuition fee paid for. IDFC FIRST Bank also funds:

Travel costs, including airfare.
Living costs and rent.
Books, laptops, and uniforms.
Even insurance costs and visa fees.

It is an integrated way to fund your education—so you can concentrate on studying rather than worrying about money.

What about co-applicants?

Some students also wonder if a co-applicant is necessary for a loan without collateral. In many cases, especially with IDFC FIRST Bank, you get abroad education loans without a collateral and co-applicant if your academic and admission profile is strong. But even if required, it does not always have to be a parent—it could be a relative or legal guardian.

Conclusion

Getting an abroad education loan without collateral to study is not just accessible—it is practical and widely available. Banks such as IDFC FIRST Bank are actively facilitating students with funding that does not require assets or burdensome paperwork. With competitive rates of interest, flexible repayment, and a student-centric approach, your international education aspirations are very much within your reach. Therefore, if money is the sole impediment that holds you back from your ideal college, then it is time to release that. The future is beckoning—and now, you can answer without collateral.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

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