Top 4 banks offering education loans without collateral

When students do not have enough funds to afford studies abroad or within India for that matter, banks have just the product to end those woes – education loans. Banks in collaboration with certain universities, introduced the concept of education loan to provide financial aid to needy aspirants. The maximum loan amount is INR 10 lakh and INR 20 lakh for domestic and abroad studies respectively.

RBI guideline suggests that an amount taken up to INR 4 lakh does not require any collateral. However, if it exceeds beyond this limit, you have to provide security. This could be in the form of an asset such as property, etc. This is taken to reduce the risk factor on the bank.

If the child is deserving and talented, then banks do consider giving the student loan without the collateral for higher amount.

If the child is struggling to provide collateral, he/she can consider the following banks who offer education loan in India without security:

  1. HDFC Bank: They fuel the child’s aspirations by providing 3 kinds of education loans. One for Indian studies, one for international studies and a central government interest subsidy scheme. They accept domestic studies for loan amount up to INR 10 lakh while abroad study education loan is available for an amount more than INR 20 lakh. They are collateral-free and cover 100 per cent educational expenses.


  1. HSBC Bank: Their education loan comes handy if the child wants to attend private school, boarding school, university, professional designation course, and correspondence course. HSBC loan amount additionally covers tuition, uniform and school fees, books, supplies and computer equipment charges, travel expenses, accommodation and other living expenses. They do not accept collaterals for loan amount up to INR 5 lakh.


  1. Bank of Baroda: Whether you are planning to do nursery education or preparing for graduate/post-graduate degree, Bank of Baroda’s student loan helps finance your goals and ambitions. Their Baroda Vidya scheme involves no security. Also, they do not take processing as well as documentation charges. The plan primarily focuses on nursery to standard XII education.


State Bank of India: India’s age-old bank have different types of student loan at their perusal. They carry a repayment period of 15 years be it India or abroad. State Bank of India also does not levy processing and upfront charges on education loans. If you take a loan amount up to INR 7.5 lakh under their student loan scheme, State Bank of India would require only a co-borrower. Again, a collateral-free loan.


education loan , student loan , education loan in India

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