Getting an education loan is very important for many students who want to study in India or abroad. But sometimes, students don’t have property to give as collateral (security) or don’t have someone to be a co-applicant. In such cases, many students wonder:
Can I get an education loan without collateral and co-applicant?
Yes, you can! In this blog, we’ll explain how to get education loan without collateral and co applicant, who provides these loans, what documents are needed, and how to calculate the total repayment in simple language.
Also Read: How Can a Student Start Investing?
📌 What Is Collateral and Co-Applicant?
Before we move ahead, let’s understand these two terms:
🏠 Collateral
- Collateral means a property or fixed asset (like land, house, FD) that you give to the bank as a guarantee.
- If you don’t repay the loan, the bank can take this asset.
👨👩👦 Co-Applicant
- A co-applicant is usually your parent or guardian who supports your loan application.
- Their income helps banks trust that the loan will be paid back.
❓ Is It Possible to Get a Loan Without Both?
Yes! Some lenders offer education loans without collateral and co-applicant, especially if:
- You are going to a top-ranked foreign university.
- You have good academic scores or test results (like GRE, IELTS).
- You plan to study in a high-demand course (like STEM, MBA, or MS).
- You have work experience or strong future earning potential.
💼 Who Provides These Loans?
Here are the main options:
| Lender Type | Names | Key Features |
| NBFCs (Non-Banking Financial Companies) | InCred, Avanse, Auxilo, Credila, IDFC First Bank | – Loans up to ₹90 L without collateral- No or limited co-applicant required- Interest ~10–13% |
| International Lenders | Prodigy Finance, MPower | – Loan in USD- No co-applicant or collateral- For select universities only- Interest ~9–10.5% (in USD) |
| Govt. Banks (with collateral) | SBI, Bank of Baroda, Canara Bank | – Offer low-interest loans- Usually need co-applicant/collateral unless secured |
✅ Basic Eligibility: How to Get Education Loan Without Collateral and Co Applicant?
To get such a loan, you must:
- Be admitted (or have a confirmed offer) to a recognized university, mostly abroad.
- Have a strong academic record.
- Be going for professional courses like STEM, MBA, MS, etc.
- For some NBFCs, you may need to show future earning potential.
- If applying without a co-applicant, you may need to show past work experience (at least 2–3 years).
📃 Documents You May Need
Here are some common documents required:
- Admission letter from university
- Mark sheets (Class 10 to graduation)
- Entrance test scores (GRE/GMAT/IELTS/TOEFL)
- Passport and visa copy
- Academic resume (CV)
- Estimated cost of education
- Bank statements (if required)
- Identity proof (Aadhar, PAN)
For international lenders like Prodigy Finance:
- Only student documents are needed.
- No income proof or co-applicant documents.
💸 Interest Rates and Loan Amounts
| Lender | Loan Amount | Interest Rate | Repayment Starts |
| InCred | ₹90 L+ | 11–13% | After moratorium |
| Avanse | ₹75–90 L | 11–12.75% | After course ends |
| Auxilo | ₹40–75 L | 11–13% | Flexible |
| IDFC First | ₹25–75 L | 10.5–12% | After course ends |
| Prodigy | USD 220K | 8.35–10.5% | 6–9 months after graduation |
📊 Simple EMI Calculation
Let’s calculate EMI in simple terms using a real example:
Example:
- Loan Amount = ₹20,00,000
- Interest Rate = 12%
- Loan Tenure = 10 years
Formula:
Where:
P = loan amount, R = monthly interest rate, N = number of months
- P = ₹20,00,000
- R = 12% yearly = 1% monthly = 0.01
- N = 10 years × 12 = 120 months
EMI ≈ ₹28,685/month
So, total repayment = ₹28,685 × 120 = ₹34,42,200
You repay ₹14.42 lakh extra over 10 years.
💡 Use EMI calculators online to get exact numbers based on your case.
💬 Pros and Cons
✅ Advantages
- No need to mortgage property
- No pressure on parents or guardians
- Fast approvals (esp. with NBFCs or international lenders)
- Easier for students with strong profiles
❌ Disadvantages
- Higher interest rates (10–13%)
- Limited to certain universities/courses
- Repayment in USD for international lenders (risk of currency change)
📘 Tips to Get Loan Without Collateral & Co-Applicant
- Target top-ranked universities – Most lenders prefer global rankings.
- Score well in entrance exams like GRE, IELTS.
- Apply early – at least 2–3 months before your semester begins.
- Prepare documents neatly – keep scanned copies ready.
- Use loan platforms like GradRight or StudentCover to compare offers.
🎓 Student Success Example
Student A:
- Going for MS in Data Science at University of Illinois
- Applied to Prodigy Finance
- Got USD 45,000 loan without collateral or co-applicant
- Interest: 9.5%
- Repayment starts 6 months after course ends
📝 Final Checklist
✔ Choose a lender
✔ Keep your academic and admission documents ready
✔ Apply online or through a loan advisor
✔ Understand your loan offer, EMI, and interest
✔ Sign agreement digitally
✔ Get disbursal to university or personal account
🏁 Conclusion
Getting an education loan without collateral and co-applicant is possible—even if you don’t have property or financially strong parents. You just need to:
- Choose the right lender,
- Prepare your documents,
- And apply smartly.
With careful planning, you can make your dream of studying abroad or in top Indian institutes come true—without putting pressure on your family.