Get education loan without collateral. GyanDhan offers education loan without collateral for abroad studies. Find more about the benefits of our Banking & Non-Banking financial partners. Checkout here!!

1. How To Get an Education
Loan Without Collateral for
Studying Abroad?

2. Why Take Education Loan to Study Abroad
Higher Cost of Education in Foreign Countries
• Growing cost of education abroad (for example, an ms in usa will
cost around usd 65,000 – 75,000)
• High exchange value
Education Loan – Best Way to Finance Your Education
• A smarter financial move especially for mid-income families
• Allows you to preserve your financial savings for other purposes
• An education abroad betters your job prospects thus bringing higher
return on investment which helps in paying off the loan

3. Why is Collateral Usually Required for Education
Loans
• Most public sector banks, private banking institutions, and financial
corporations necessitate a collateral security against loans
• For a credit limit crossing INR 7.5 lakhs, financial institutions deem
collateral necessary
• However, for a credit limit upto INR 7.5 lakhs, banks often strike off the
requirement for a collateral
• In case of default payments, the collateral is used by financial organizations
to handle the npas
• In the recent years, non-banking financial corporations and private lenders
have emerged to provide loans without collateral.
Now let’s have a look at education loans offered by Banks and financial
institutions and their collateral Requirements.

4. Typical Collateral Requirements: By Lender Type
• Public Sector Banks: Eg. SBI, Bank of Baroda: Most public sector banks
like the State Bank of India and Bank of Baroda do not offer education loans
more than 7.5 Lakhs for overseas education, without a collateral
• Private Sector Banks: Eg: Axis Bank, ICICI: Private banks generally do
not offer education loans. However, two notable exceptions are Axis Bank
and ICICI, which offer unsecured overseas education loans up to INR 40
lakhs – albeit in select colleges and courses.
• Non Banking Financial Companies: Eg: Avanse, InCred and others
provide education loans without collateral. These education-focused lenders
offer the maximum flexibility and cover a wide range of courses and
colleges.

5. Another, But limited, Option for Education Loans
without Collateral: Foreign Institutions
• Loans can also be availed from foreign financial institutions.
• The borrower typically needs to have a co-signer as a guarantor.
• The guarantor should be a permanent citizen of the respective country with a
good credit record.
• In case of defaults by the borrower, the co-signer will have to repay the loan.
• Exception: Few new-age lenders, notably MPOWER Financing and Prodigy
Finance provide education loans without a local co-signer. However, they do
have a few drawbacks.
➢ The processing fee is normally high – around 2.5% to 5%
➢ Additionally, the $-based interest rates are also quite high, around
10% to 12%. (10% in USD is almost equivalent to 15% in INR)

6. Want an Education Loan Without Collateral?
Taking a loan against personal assets can be an unnerving affair due to the amount
of risk involved. But here is where GyanDhan comes to your rescue. We help to
get your loans sanctioned from banks and other institutions without any collateral.
Let’s have a look at our process and the various benefits our services provide

7. Get an Education Loan without Collateral with
GyanDhan
What we do?
• Private banking entities such as Axis and ICICI Bank and non-bank finance
companies, such as InCred Finance and Avanse, offer education loans
without collateral but their approval policy – i.e. whether your application
will be approved – is unclear.
• Here is where GyanDhan steps into the picture and facilitates quick sanction
of loans at reasonable interest rates starting at 11%.

8. GyanDhan Process
Our Process
• We pre-assess the profile of the applicant and find out the lender that fits the
applicant the best
• The entire process of loan sanctioning is conducted in a quick and
transparent manner
• In case a student can afford to keep a collateral against the loan, GyanDhan
helps to get the loan sanctioned at better– starting from 9.40%
What’s More – We don’t charge you anything!

9. With GyanDhan, Taking Loans is no Longer a
Hassle!
• GyanDhan understands that taking a loan itself is a liability, with lengthy and
time-consuming procedures giving no respite!
• We not only ease the process of availing a loan but also help you to get
economically optimal loans with low fees and low interest rates.
• We also provide free door pickup service of documents for SBI and BOB
loans thus saving you a major amount of your time and effort.
• For loans from NBFCs, you can avail GyanDhan’s online platform to upload
your necessary documents. Therefore, you can apply to as many NBFCs as
you want through just one-time upload of documents!

10. Unsecured Loan Eligibility Primarily Depends on Country, Course & University
Countries Course Difficulty Level Comments
USA MS-STEM, MBA Very Easy More than 200 universities
USA Masters (non MS & MBA) Moderately Easy Depends on course
USA PG Diploma Easy
USA Other Courses Tough, But Possible
Canada MS-STEM, MBA Easy More than 50 universities
Canada Masters (non MS & MBA) Moderate Tough, But Possible
Canada PG Diploma Easy
Canada Other Courses Very Tough, But Possible
Australia MS-STEM, MBA Easy Only ~25 universities
Australia Other Courses Very Tough, But Possible
New Zealand Masters Programs Easy Only ~5 universities
Ireland Masters Programs Easy Only ~10 universities
Ireland PG Diploma Moderate Tough, But Possible
Germany, France, Singapore,
Netherlands, Switzerland, Spain,
Italy & Sweden
Masters Programs
Moderate Tough, But Possible
Depending on the colleges

11. Common Reason for an Unsecured Loan Application
To Get Declined
● Based on Applicant’s Profile
○ Backlogs are more than 5
○ GRE < 280, IELTS < 6.5, TOEFL <
78, PTE < 58
○ Graduation, 10th & 12th Marks <
50%
○ Applicant Age is more than 35
○ Already have an ongoing education
loan
○ Quality of the target college & course
● Based on Co-applicant’s Profile
○ If the co-applicant doesn’t file
the ITR
○ If two ITRs are filed within 6
months of each other
○ Defaults on past loans, credit
card by co-applicant
○ Co-applicant already has high
EMIs

12. Give wings to your dreams of studying
abroad with GyanDhan!

13. About us
GyanDhan aims to make higher education a reality for
every aspiring student – irrespective of their financial
background. It has partnered with leading financial
institutions from India and abroad and helps students secure
the best education loan for abroad in minimum time.
We were Awarded by the US State Department at the
Global Entrepreneurship Summit 2017 and have been
helping students fund their study abroad dream since 2015 .

14. Other Useful Resources
❏ Ways to Get an Education Loan without Collateral for Abroad Studies
❏ Common Reasons Why A Bank Would Decline An Education Loan With
Collateral
❏ Confused between Education Loan from Bank or NBFC? Clear All Your Doubts
Here!
❏ Why Should Students take Education Loans via GyanDhan?

15. Contact us
1st Floor, 47, E Block,
Saket, New Delhi
110017
contact@gyandhan.com
www.gyandhan.com
704210 0780
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16. India's First Education Financing Marketplace