Abroad education is becoming more and more accessible for students around the world. More than 1.3 million students in India alone have chosen to study abroad. With high-quality education opportunities and bright career prospects, students prefer an abroad education. However, one challenge that persists for students is finding the funds.
In this article, we will be taking a look at the abroad education loans offered by various Non-Banking financial institutions in India. We will get to know these financial institutions and about their education loan without collateral for students planning to study abroad.
5 NBFCs & Key Features of their Education Loan Without Collateral for Abroad
1. Avanse Financial Services
Avanse is an education-focused NBFC that offers students highly personalized education loan solutions. They aim to make education and education financing more accessible for students. The NBFC offers a range of solutions for students that cover all the students’ needs. It offers secured as well as unsecured loans. Let’s take a look at some of the key features of their unsecured loans for abroad studies.
Key Features of Unsecured Loans Offered by Avanse Financial Services for Abroad Education
| Income | The loan will be offered based in the income of the sponsors.
For students with GRE Score of 300+ ITR is not required |
| Loan Amount | Avanse offers unsecured loans up to Rs. 75 Lakhs for USA and Rs. 40 Lakhs for other countries |
| Rate of Interest | It offers unsecured loans at the rate of interest of 11.5% to 14% |
| Loan Margin | It offers 100% funding that covers all expenses like tuition fees, living expenses and more. |
| Study Level | Avanse offers unsecured loans only for Masters, PG Diploma, Graduate Diploma courses (STEM and Management courses) |
| Repayment Tenure | The repayment tenure for these loans is 10-14 years including the course duration |
| Sponsors | Sponsors for the loan can be parents, grandparents, other immediate family |
| Simple Interest | Students with unsecured loans for PG/Masters can pay simple interest or partial simple interest |
| Moratorium Period | It is till 1 year after completing the course |
2. HDFC Credila
HDFC Credila is India’s first Education Loan company that has pioneered the education loan. The NBFC has a specialized focus with a complete understanding of the needs of the student helping them to make their abroad education a reality. The NBFC has given time and resources in understanding the education space to set up appropriate systems and processes. These systems help them in the loan approval process effectively.
Key Features of Unsecured Loans Offered by HDFC Credila for Abroad Education
| Income | The loan is offered based on the income of the sponsors |
| Loan Amount | The NBFC offers unsecured loan up to Rs. 75 lakhs for USA and Rs. 35 Lakhs for other countries |
| Rate of Interest | The rate of interest for unsecured loans offered by HDFC Credila ranges from 11.5% to 12.75% |
| Loan Margin | The NBFC offers 100% funding, including tuition fees, living expenses and more |
| Study Level | It offers unsecured loans only for Masters or PG courses |
| Repayment Tenure | 12 years including the course duration |
| Sponsors | Students can have Parents, grandparents, and immediate family as sponsors for the loan |
| Simple Interest | Students can pay simple interest or partial simple interest |
| Moratorium Period | The moratorium period is 12 months after completing the course. |
3. InCred Finance
InCred Finance is an NBFC that offers a variety of loans for a variety of needs. It believes in constant innovation and in using technology, data science, and expertise in the financial domain to offer the right kind of loan to customers. Their foreign education loan options help students to fulfill their abroad education dreams.
Key Features of Unsecured Loans Offered by InCred for Abroad Education
| Income | The loans are offered depending on the income of the sponsors |
| Loan Amount | The NBFC offers unsecured loans up to Rs. 45 Lakhs for USA and Rs. 35 Lakhs for other countries |
| Rate of Interest | For unsecured loans, the rate of interest is 11.5% to 12.75% |
| Loan Margin | Offers 100% funding covering expenses like tuition fees, living expenses, and more. |
| Study Level | It offers unsecured loans only for Masters and PG courses |
| Repayment Tenure | The duration for repayment for the loan is 12 years including the course duration. |
| Sponsors | Students can have parents, grandparents and immediate family as sponsors |
| Simple Interest | Students can pay simple interest or partial simple interest |
| Moratorium Period | The moratorium period is till a year after completing the course |
4. Auxilo
Auxilo is a pro-education NBFC that wants to ensure that students acquire the knowledge, skills, and dispositions that they need to achieve their individual goals and maximize their contribution to society and the country. The NBFC recognized the significant gap in the education industry and has become an enabler of education growth that is focused on being socially responsible.
Key Features of Unsecured Loans Offered by Auxilo for Abroad Education
| Income | The loans are offered depending on the income of the sponsors |
| Loan Amount | The NBFC offers unsecured loans up to Rs. 45 Lakhs for USA and Rs. 35 Lakhs for other countries |
| Rate of Interest | For unsecured loans, the rate of interest is 11.5% to 12.75% |
| Loan Margin | Offers 100% funding covering expenses like tuition fees, living expenses, and more. |
| Study Level | It offers unsecured loans only for Masters and PG courses |
| Repayment Tenure | The duration for repayment for the loan is 12 years including the course duration. |
| Sponsors | Students can have parents, grandparents and immediate family as sponsors |
| Simple Interest | Students can pay simple interest or partial simple interest |
| Moratorium Period | The moratorium period is till a year after completing the course |
5. Tata Capital
Tata Capital is a financial services company that is a part of the Tata Group that offers a variety of financial services for a wide array of sectors and needs. The NBFC offers personal loans, business loans, and education loans too. Let’s take a look at the NBFC education loan without collateral offered by Tata Capital.
Key Features of Unsecured Loans Offered by Tata Capital for Abroad Education
| Income | The loan is offered based on the income of the sponsors |
| Loan Amount | It offers unsecured based on different types:
The platinum loans for USA offered up to Rs 75 Lakhs for other destinations it is up to 40 Lakhs for Masters.
The gold loans for USA are offered up to Rs 55 Lakhs and for other destinations is up to 30 Lakhs for Masters.
For Bachelors students can get up to 50 Lakhs
|
| Rate of Interest | The rate of interest for unsecured loans is in the range of 12% to 13.5%. |
| Loan Margin | It offers 100% funding covering all expenses |
| Study Level | It offers unsecured loans for all Bachelors and Masters courses |
| Repayment Tenure | It offers 13 years of repayment duration including the course duration |
| Sponsors | Students can have parents and immediate family as sponsors |
| Simple Interest | Students can pay simple interest for Masters. For bachelors courses there is a direct EMI option |
| Moratorium Period | The moratorium period is 1 year till after completing the course. |
To summarize, this article takes a look at the Non-Banking Financial Institutions and the unsecured loans offered by them. We took a closer look at these institutions and the key features of their unsecured loans for abroad education.
For more information on abroad education loans offered by Banks and NBFCs, students can reach out to abroad education loan experts. These experts can help students understand the various loan options and choose the best-suited ones for them. They can help students to find the best bank for education loans based on their needs to make their abroad education successful.
