With changing times the education system of our country is continuously evolving to meet the needs of this increasingly specialized world. A number of specialized courses and programs such as vocational training courses, undergraduate and post graduate degree courses are being introduced as a part of this evolution. The education system will be advancing and has advanced for the better, but this advancement has come along with a sharp increase in the actual cost of education. Given the high cost, it has become difficult to afford education. Thank god for education loans, that has emerged as a solution that addresses the plight of students. A solution which ensures that no deserving student is deprived of higher education for wants of finances.
Banks and financial institutions are warming up to the idea of funding educational courses, provided there is a good likelihood of those studies leading to a job. And to increase the ease further for students they are coming up with schemes which have no collateral or security requirement for offering the loan amount. Usually in India, education loan amount up to Rs.4 lakhs do not require any collateral or security. However, collateral requirement is very subjective in nature and may vary for individual cases according to the past record and future prospects of the applicant. There are many schemes in our country which offer education loan to students without any collateral or security. Few such schemes and their salient features have been listed below to help you decide better:
HDFC Credila Education Loan:
- HDFC Credila is a dedicated education loan company under the umbrella brand of HDFC.
- It has a flexible collateral security policy i.e. for meritorious student having a strong academic track record; collateral requirement may be given up provided he/she has secured admission in a reputed institute.
- The loan is offered for over 2100 unique institutes across 35 different countries.
- Unique features of HDFC Credila education loan include doorstep service and up to 100% finance offered.
Avanse Education Loan:
Avanse is an associate company of Deewan Housing Finance Limited (DHFL) and offers education loan across various categories such as:
- Executive Education Loan
- Study in India Education Loan
- Study Abroad Education Loan
- It is popular for offering customized credit solutions to students according to their unique needs
- Avanse has collaborated with cream of institutes in order to make the loan procedure easy and smooth.
- Collateral requirement is flexible and depends on the individual merit record of the applicant.
SBI Loan for Vocational Education and Training:
- This is a term loan granted to students for securing vocational education or training in India.
- The loan amount granted under this loan is Rs. 50,000 for a course of duration less than 6 months while it is Rs. 1 lakh for a course of duration of over 1 year.
- 100% financing is available and there is no processing fee charged on this loan.
- Parents or guardians can act as a co-borrower and the loan application is executed jointly.
Punjab National Bank (PNB) Pratibha Education Loan:
- The PNB Pratibha scheme provides financial assistance to meritorious students who want to pursue higher education in premier institutes of India.
- The scheme is meant for Indian students who have secured admission in a regular full-time diploma or degree courses in premier business schools, engineering colleges, medical colleges, and other reputed institutes.
- No collateral or security is required for loan of up to Rs. 4 lakh even though the student must have a parent as a co-applicant to secure the loan.
- The maximum tenure for repayment of the loan is 15 years.
- The bank offers financial assistance for technical and professional education in India and abroad.
- For loan amount up to Rs. 4 lakhs there is no margin applicable
- The bank offers schemes with discounted rate of interests for education in premier institutes of India and abroad.
- Collateral requirement is very subjective and will be asked for only if the job security or repayment capacity of the applicant is not ascertained.