You can study abroad on an education loan without pledging property, but the limit is usually set by where you study, not just by how much you need. The same family can be offered a large unsecured loan for one university and nothing without security for another. This guide explains the limits on lenders' own pages, who qualifies, how university lists work and what co-applicants must show. It does not cover applying for loans in general: use our other guides for that.
- As per lender pages at the time of writing, SBI lists up to 50 lakh rupees without collateral for 100 select institutions, and Bank of Baroda lists no security only up to 4 lakh rupees
- MPOWER says it is not taking new loans for now
- Limits change, so confirm them in writing.
How Much Education Loan Can You Get Without Collateral?
It depends on the lender and your university. On current lender pages, an education loan without collateral ranges from 4 lakh rupees at Bank of Baroda to 50 lakh at SBI for listed institutions and 1 crore at Axis for premier courses. Prodigy lists up to 220,000 dollars for supported schools.
| Lender (alphabetical) | Collateral-free limit on its page | Condition | Starting rate without collateral |
|---|---|---|---|
| Axis Bank | Up to 1 crore rupees (Prime Abroad); 7.5 lakh on its standard loan | Full-time premier courses abroad | Table unclear when we read it; ask the bank |
| Bank of Baroda | Up to 4 lakh rupees | Parent as co-obligant; third-party guarantee from 4 to 7.5 lakh | 10.15% non-premier up to 7.5 lakh; 8.70% premier list |
| Credila | Offered; amount set by assessment | Profile, course, institution | 11.25% |
| ICICI Bank | Offered; limit not stated | Check with the bank | 10.25% abroad |
| MPOWER Financing | Up to 100,000 dollars | Approved schools; not taking new loans when we read it | As low as 9.99%, 10.89% APR |
| Prodigy Finance | Up to 220,000 dollars | Supported schools; funding and credit checks | 10.90% variable, master's; example 13.48% APR |
| SBI Global Ed-Vantage | Up to 50 lakh rupees | Select institutions only | 9.65% |
Guides often quote a blanket 40 lakh rupee limit for private lenders. We found limits vary too much for that to hold, so go by the lender's own letter rather than any list, including ours. The order above is alphabetical and does not rank anyone.
Who Qualifies for a Collateral-Free Loan?
Lenders look at your admission, your academic record, your course and your co-applicant's income. Credila's guide says borrowers must be Indian nationals with admission to a renowned foreign university, usually with a co-applicant. An unsecured loan rests on those factors, so a strong profile matters more than it does for a secured loan.
- Your university and course: listed institutions get higher limits, and guides say job-focused courses are favoured
- Your academic record and test scores, which some lenders use to estimate future earnings
- Your co-applicant's income, credit history and existing debts
Credila's own guide warns that a course may not be acceptable for every non-collateral product, and lists profile, course, co-applicant finances, credit history and missing documents as reasons for rejection. Guides also point to high existing EMIs as a common reason, but figures vary, so ask each lender how it measures this.
How Do University Lists Decide Your Limit?
Most high collateral-free limits apply only to listed institutions. SBI publishes a select list of 100 institutions, including 18 in the UK and 36 in the US, with none in Canada or Ireland. Bank of Baroda publishes separate premier lists by subject area. Being on a list makes you eligible, but approval still depends on assessment.
Treat any list as a starting point and check these things before you pay a deposit:
- The list's date, because lenders revise them and older copies still circulate online
- The exact campus and legal name, as branch campuses may not count
- Whether the list covers your course: Bank of Baroda has separate lists for management, STEM and other fields
- Whether the limit covers your full budget or leaves a shortfall to fund from savings
If your university is not on a list, ask the lender for its limit in writing before assuming you have no option. Guides on lender lists are useful for ideas, but only the lender's current document counts. Note too that a university on one lender's list may be missing from another's, so compare two or three.
Student Loans for Studying AbroadRead →Who Can Be a Co-Applicant Without Collateral?
Usually a parent, spouse or guardian with a stable income, though lists vary. ICICI lists parents, siblings, spouse, grandparents, parents-in-law and uncles. Axis treats the parent or guardian as a co-applicant and primary debtor. Credila says a co-applicant is generally required and that a loan without one is difficult in most cases.
A co-applicant is not a formality. If you do not pay, the lender can look to them, and the debt can appear on their credit record. Before anyone signs, go through the worst case together: what happens if the student has no job a year after the course ends? Lenders usually ask salaried co-applicants for salary slips, Form 16 or returns, and self-employed ones for income tax returns and business proof, as Credila's and SBI's pages show.
Agricultural income or cash income can be harder to assess, so ask early what the lender will accept. If your parent is close to retirement, ask about a second co-applicant or a shorter tenure. Credila's guide says a loan is difficult without an earning co-applicant, while Prodigy and MPOWER advertise no co-signer, so international lenders are the main route if nobody in India can sign.
What Does a Loan Without Collateral Cost You?
Usually more. On lender pages at the time of writing, ICICI lists 10.25% unsecured against 9.00% secured for study abroad, and Credila lists 11.25% against 9.95%. SBI's select list shows 9.65% against 9.15%. Those starting rates differ by 0.5 to 1.3 percentage points, and processing fees also apply.
On 30 lakh rupees over 15 years, a one percentage point gap adds about 1,800 to 1,900 rupees to the EMI at these rates, which we worked out for illustration. It is often still worthwhile if it keeps your home out of the deal, but compare the whole cost. International lenders can add large fees: Prodigy lists a 4.2% administration fee and a 500 dollar processing fee, on top of interest. Look at the annual percentage rate where one is given.
Check what happens at the first sign of trouble too. Ask about the interest charged during the course, late payment charges and whether you can prepay without a penalty. Credila's page lists no prepayment charge, while Axis lists its processing fee at up to 2% plus GST.
How to Get a Loan for Abroad StudiesRead →Should You Pledge Collateral or Stay Unsecured?
Neither suits everyone. Collateral can lower the rate and raise the limit, but it puts a family asset at risk. An unsecured loan keeps the asset out, usually at a higher rate and lower limit. A partly secured or smaller loan can sit between them. Decide by your repayment plan, not the rate.
- Consider unsecured if your university is on the lender's list and the limit fits your budget
- Consider security if your limit falls well short, or the rate gap is large over your likely tenure
- Ask about fixed deposits, which some lenders accept: ICICI and Axis list them, so a home need not be the only option
- Consider a lower-fee university if neither route is comfortable, since less borrowing beats any rate
Do not sign anything you have not read in full. A property-backed loan also needs valuation and legal checks that take time, so an unsecured route can help when deadlines are close. That speed has a price, so compare the two before deciding.
Do Government Schemes Offer Collateral-Free Study Abroad Loans?
PM-Vidyalaxmi does not help here. Indian Bank's page says the scheme covers quality higher education institutions in India and that foreign education institutions will not be covered. So for study abroad, you rely on the lender's own unsecured limit. Our government loan guide compares public sector options in more detail.
Public banks may still lend small sums on a lighter basis. Bank of Baroda's table asks for no security up to 4 lakh rupees and a third-party guarantee between 4 and 7.5 lakh. Its FAQ separately says collateral-free study abroad loans are not available, so ask your branch to confirm in writing. AdmitKard counsellors can help you shortlist universities with your budget and funding route in mind, and you should still verify every offer with the lender.
Government Education Loan for Study AbroadRead →