Educational Loan for Studies Abroad without Security
A degree from one of the universities abroad does add an edge to your resume. Hence, more and more individuals are opting for studies abroad either immediately after pre-university/university studies in India or after working for some years. The expenses involved in studies abroad is quite high, thereby needing a loan.
Most of the big-ticket loans come with the need for security as it acts as a protection for the lender in case of default by the borrower. Education loans are no exception. However, there are certain provisions available with some education loans that can be used to avail of an educational loan without security.
Credit Guarantee Fund for Educational Loans (CGFEL) Scheme
This scheme provides a guarantee for educational loans disbursed by banks under the Model Education Loan Scheme of Indian Banks' Association (IBA). Under this scheme, educational loans up to a maximum of Rs 7.5 lakhs, are sanctioned without security or a third-party guarantee.
So, CGFEL Scheme is a good avenue for obtaining an educational loan for studies abroad without security, at least for up to Rs 7.5L.
Loans over and above Rs 7.5L are allowed. The generally allowed amounts are Rs 10L for studies within India and Rs 20L for studies abroad.
Education Loans from Private Lenders or Non-Banking Financial Companies
There are numerous private lenders or Non-Banking Financial Companies that do lend education loans and may not require security even for educational loans beyond Rs 7.5L normally allowed by banks with security.
However, these loans could carry a higher rate of interest than the banks.
Loans from private lenders or NBFCs could come with more flexible terms and may be easily accessible to many.
Loans from Fintech Lenders
Fintech lenders like Money View lend instant online personal loans that can be used for a variety of reasons like meeting a shortfall in education loans, meeting living expenses while studying abroad, etc.
However, to be able to avail of a personal loan you should meet some eligibility criteria like earning a monthly income, have a minimum credit score, be in a certain age group, etc.
So all students may not meet the eligibility criteria. But it is possible that parents, siblings or guardians can avail of an instant personal loan to meet the expenses of your studies abroad.