Are there loan options available for studying abroad and how do collateral and non-collateral loans work?

To get an education loan for studying abroad, you’ll usually need a co-applicant and, for higher amounts, collateral.

- Collateral: For loans above ₹7.5 lakh, most banks require collateral such as residential property, non-agricultural land, fixed deposits, or government bonds. The approved amount depends on the collateral’s value. Unsecured loans up to ₹7.5 lakh may be available, especially for top institutions.
- Co-applicant: A co-applicant (typically a parent or guardian) is mandatory. They must have a stable income, a good credit score (usually 750+), and a low debt-to-income ratio.
- Other criteria: Both applicant and co-applicant must be Indian citizens. Admission to a recognized foreign university and a strong academic record are required. Age limits and documentation (ID proof, academic records, admission letter, income proof) apply.

Loan policies are subject to change. If you need help with your application, connect with your LeapScholar counsellor.

It depends. Education loans for studying abroad can be either secured (collateral) or unsecured (non-collateral), based on the lender and the loan amount.

- Secured loans require you to pledge an asset (like property or fixed deposits). They usually offer higher loan amounts and lower interest rates.
- Unsecured loans do not require collateral. Approval depends on your academic profile, university ranking, and your co-applicant’s financial background. These typically have higher interest rates and lower maximum amounts.

With your strong academic record (8.2 CGPA in Commerce), you may qualify for unsecured loans, but the amount may be limited compared to secured options. If you need guidance on which loan type suits your needs, connect with your LeapScholar counsellor.

There are two main types of education loans for studying abroad: secured (collateral) and unsecured (non-collateral) loans.

- Secured (Collateral) Loans: Require you to pledge an asset (such as property or fixed deposits). These typically offer higher loan amounts (up to ₹1.5 crore or more), lower interest rates (around 8.5%-10.5%/year), and longer repayment periods (up to 15 years). Processing can take 3-6 weeks due to collateral verification.

- Unsecured (Non-Collateral) Loans: Do not require any asset as security. Approval depends on your academic profile and your co-applicant’s financial background. These usually offer loan amounts up to ₹75 lakh, higher interest rates (10.5%-14%/year), and repayment periods up to 10 years. Processing is faster, often 7-15 working days.

Eligibility, interest rates, and terms are subject to change. For detailed guidance and to compare options, please connect with your LeapScholar counsellor.

You have two main types of education loans for studying abroad: collateral (secured) loans and non-collateral (unsecured) loans.

Collateral loans:
- Require you to pledge assets like property or fixed deposits.
- Offer higher loan amounts, often up to ₹1.5 crore or more.
- Interest rates are generally lower (around 8.5% - 10.5% per annum).
- Take longer to approve due to asset verification.

Non-collateral loans:
- No asset pledge required.
- Public banks usually offer up to ₹7.5 lakh; private banks/NBFCs may offer up to ₹75 lakh or more, depending on your profile.
- Interest rates are slightly higher (typically 8.5% - 12.5% per annum).
- Faster approval based on your admission, academics, and co-applicant’s financials.
- Usually require a co-applicant with stable income and good credit.

Both types usually include a moratorium period (course duration plus 6 - 12 months) before repayment starts. Eligibility depends on your admission, academic record, co-applicant’s financials, and lender policies.