As a matter of concern over skyrocketing prices on college education, the expenses are ballooning twice as fast as the rate of inflation due to which most of the students are unable to fulfill their dream of studying abroad. On account of this, a large chunk of students prefer an education loan to study abroad. In order to obtain an education loan for higher studies in Government banks, applicants are required to pledge collateral of a specific value but what about the students who cannot afford to pledge any collateral as security? Students who cannot pledge collateral as a security can opt for an unsecured abroad education loan, also known as study abroad education loan without collateral from NBFCs (Non-Banking Financial Companies) in India.

Things to keep in mind while borrowing an education loan without collateral

Education loans without collateral interest rates

Maximum loan amount

Moratorium Period and repayment

Maximum loan tenure

Processing Fees

Why NBFCs for education loans?

Education loan for abroad studies without collateral

Flexible policies regarding the nature of courses

100% coverage of total expenses

Pros of borrowing an education loan from NBFCs

Faster and trouble-free disbursement of funds

Less paperwork

Zero loan margin

Cons of borrowing an education loan from NBFCs

Moratorium period is not payment free

Calculation of the interest amount charged during the moratorium period

Higher processing fee

Rejection of loan applications without any valid reason

Hike in interest rates without prior intimation

Conclusion:

To conclude, we would recommend you to conduct a thorough research of the market and then take a wise decision before approaching any lenders for an abroad education loan without collateral. Financing your abroad education loan could be tricky as it depends on the lender and their policies when borrowing an education loan without collateral.

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