✓ Up to 100% Funding ✓ Interest Rates starting from 10.25% p.a. ✓ Get up to ₹75 Lakhs Check Eligibility

If you are planning to pursue a degree that has a high fee associated with it, you may consider getting an education loan. It can help you pay up to 100% of your tuition fee and other associated expenses. While a guarantor may be a mandatory requirement, the collateral is not. So if you are worried about not having any assets to submit as collateral, don’t worry. You can still borrow a high amount of up to ₹80 Lakhs at interest rates starting from just 10.25% p.a. Let’s understand unsecured education loans available on Bajaj Markets in detail.

Fees and Charges for Student Loan Without Collateral

The interest rates and charges of an education loan on Bajaj Markets are as follows:


Starting Interest Rate

Processing Fee


11.50% p.a.

0.75% to 1.5%

HDFC Credila

10.25% p.a.

1.5% of the sanctioned loan amount + GST


12.00% p.a.

Between 1% and 3% of the loan amount

*Disclaimer: The mentioned rates are subject to change at the lender’s discretion.

Non-Collateral Education Loan Pros and Cons

Some advantages of opting for an education loan without collateral are:

  • Ideal for the Risk-averse: Individuals usually opt for this to avoid losing ownership of the assets in case of default 

  • Easily Accessible: It is ideal for students without valuable assets. Anyone with a co-borrower that meets the set requirements can get the loan. 

  • Quicker Processing: These loans are usually approved faster. This is because there is no collateral that needs to be evaluated and appraised.


There are also some limitations that you should be aware of before applying for the loan without providing a collateral:

  • Higher Interest Rates: As there is no collateral, the risk increases for the lender. This generally results in higher interest rates compared to secured loans.

  • Lower Loan Amounts: The lender does not have any asset which they can sell to recover the amount in case of a default. Thus, to limit the potential risk and loss, the lender usually offers a lower loan amount.

  • Stricter Eligibility: You must have a strong academic record and a reliable co-applicant to be eligible

Eligibility Criteria and Documents Required

Here are some criteria you may have to fulfil to get an education loan without collateral:

  • Your credit history should not have any ‘written-off’ loans/credits

  • You should not have more than a set number of Days Past Due (DPD) in the last 1 year

  • Your age should fall within the set age bracket, which usually ranges from 18 to 60 years

  • You must have a good GRE/GMAT score (in case you are planning to study abroad)


Alongside this, your chosen degree and preferred institution are also taken into consideration. Your academic performance and track record are evaluated by the lenders. These assure the lender of your likelihood of completing the chosen degree/certification. 


Also, the credit profile and income stability of your co-applicant play a major role. Ensure to get a proper understanding of each criterion set by the lender, prior to applying for a loan. 


You will also be asked to provide a set of documents during the application process. Some common paperwork you may have to submit include:

  • Your and the co-applicant’s KYC documents

  • Income documents of the co-applicant

  • Academic documents

  • Unconditional offer letter from an institution or any other admission proof

  • Form I-20 


Be sure to get a complete list of the documents required from the lender. Collate all the paperwork beforehand to enjoy a smooth application process. 

How to Apply For Foreign Education Loan Without Collateral

You can easily apply for an education loan without collateral on Bajaj Markets:

  • Click on the ‘Apply Now’ option on this page

  • Provide your basic details like name, address, etc. as requested

  • Select a lender from the list of loan providers

  • Choose your preferred tenure and the required loan amount

  • Cross-check the details entered and submit the application


Following this, an executive will contact you to guide you through the process.

Things to Consider Before Applying for an Education Loan Without Collateral

Consider the following before applying for an education loan:

  • Future-oriented Planning

The course you select defines your future earning potential. This is a major factor considered by lenders when assessing your loan eligibility. So, research job market conditions and industry trends in your chosen field. 


If the course/degree is aimed to upskill yourself, assess how it will impact your current career path. Check the employment prospects and gather insights that to share with your lender. These can help you negotiate loan terms to get a better offer.

  • International Education Needs

If you are planning to study abroad, check the currency in which the lender issues the loan. If it is in rupees, assess the currency exchange rates and how it may impact your loan. Consider additional travel fares, accommodation costs, health insurance and other requirements when applying. This will help you determine the loan amount you need and plan your finances better.

  • Lender-specific Perks

Some lenders may provide unique benefits to you alongside the loan. This can include free career counselling, networking opportunities, and even job placement. You may also be offered some unique loan protection plans like insurance. These cover loan repayment costs in case of an unforeseen incident. Such perks are subject to the lender's policies.

  • Digital Lending

Consider applying for the loan online from the comfort of your home or office. Enjoy a smooth online application process and easy loan management on Bajaj Markets. You can compare offers provided by multiple loan providers and get a loan that suits your needs. Furthermore, you can simply scan and submit the required documents. This simplifies the process and helps you avoid the hassle of extensive paperwork. Such digital processes make applying for a loan easy and convenient.  

  • Flexible Disbursement

Consider lenders that offer flexible disbursement options. You can choose to receive the entire loan quantum as a lump sum. Alternatively, you can request for it to be provided in tranches as per the course's fee structure. This is subject to the lender’s policies, as well as your eligibility and preferences.

  • Repayment Options

Check if lenders offer income-driven repayment plans. Here, the repayment amount you are liable to pay is based on your future earnings. Some lenders also provide step-up options. Under this, the EMIs start low and increase gradually as your income grows. 


Evaluate the moratorium period provided by the lender. Usually, these include the duration of your degree along with a grace period of up to 12 months. Repayments typically start at the end of this period. Check the terms and conditions of this period along with how it impacts your loan repayment. This helps you study and get a job without having to worry about the repayment of the loan.

FAQs On Collateral Free Education Loan

Can I get an education loan without collateral?

You may get an education loan without submitting any collateral. However, the eligibility criteria for these loans may be strict. Ensure that your co-borrower has a robust credit history and stable income. This helps increase your chances of getting the loan without submitting any asset.

How to get an education loan without collateral to study abroad?

Apply for an education loan on Bajaj Markets and borrow up to ₹80 Lakhs without having to pledge your assets. This amount can be used to study abroad. You can pay up to 100% of your tuition fees, flight tickets, living expenses, and more.

Which lender provides education loans without collateral?

Propelld, HDFC Credila, and InCred provide collateral-free education loans online on Bajaj Markets.

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