The cost of higher education in India has been increasing for quite a time. Fortunately, many lenders in the form of banks and non-banking institutions like NBFCs have come forward to help parents fund their child’s education. These education loans provided by them cover almost all kinds of expenses including the tuition fee, travel fee, hostel fee, cost incurred for buying a laptop and miscellaneous expenses too.
However, these education loans come at the expense of the collateral submitted. Most banks and NBFCs ask the borrowers to submit a collateral or security deposit in the form of property papers, third party guarantee, LIC deposits, etc. This makes availing education loan a bit difficult for those who don’t have any such kind of property to submit.
As a sigh of relief, there are also banks which offer Education Loans for Study in India and Abroad without asking for any kind of collateral. These banks offer high-value education loans to meritorious students and to those students who deserve or need such benefits. They understand the problems of rising education cost and thus extend a helping hand.
Many banks provide collateral-free education loan to students for vocational courses and other courses which are pursued through management quota or other special criteria. However, keeping themselves one step ahead of these norms, there are premier banks which offer other forms of collateral-free education loans to students. Some of these are mentioned below.
One of the most esteemed banks, SBI offers students education loan without security through its SBI Scholar Loan Scheme. The bank doesn’t ask any collateral from the students who manage to secure admission in the top institutes of India.
Canara Bank offers collateral-free education loan to students who secure admission in the top premier institutes of India, i.e., IITs and IIMs through its Vidya Turant Loan Scheme.
The Indian Bank’s IB Prime Loan Scheme offers education loan without security up to INR 30 Lacs to students who secure admission in the institutes mentioned in the bank’s List A.
On the lines of SBI, UCO Bank Super Premier Education Loan Scheme also gives education loans free of security. This is limited only to the top 8 IIMs in India which include IIMs at Ahmedabad, Bangalore, Kolkata, Indore, Lucknow, Kozhikode, Jamshedpur, and Hyderabad.
The Bank of India’s Star Vidya Loan Scheme offers collateral-free loans for studies in premier institutes of India.
South India Bank also assists students in securing hassle-free admission in premier institutes of India through SIB Excellence Loan Scheme.
Through its PSB Excellence Loan Scheme, Punjab and Sind Bank also becomes a part of the banks offering collateral-free education loans.
Many NBFCs offer collateral-free education loans to students as they want to expand their customer base. Fullerton India is one of them.
Loans without any kind of collateral take less time to get disbursed and are processed swiftly. They even remove the burden and stress from the shoulders of parents.