Education Loan Without Collateral for MBA in India – Best Banks & Eligibility Criteria
Formfees
02/04/2025
If you want to pursue MBA from Top colleges like IIMs it could be quite challenging in Financial aspect .Keeping that in mind , many financial institutions now offer education loans without collateral, making it easier for students to fund their studies without pledging assets.
Contents
- 1 Know What is a Collateral-Free Education Loan?
- 2 Best Banks & Financial Institutions Offering Education Loans Without Collateral
- 3 Know The Eligibility Criteria for Education Loans Without Collateral
- 4 Top Government Schemes for Collateral-Free Education Loans
- 5 How to Apply for an Education Loan Without Collateral?
Know What is a Collateral-Free Education Loan?
A collateral-free education loan means there is no need for students to provide property, fixed deposits, or other assets as security to avail the loan. Your loan will be backed by government schemes or approved financial institutions.
Best Banks & Financial Institutions Offering Education Loans Without Collateral
| Bank/Institution | Loan Amount (₹) | Interest Rate (%) | Moratorium Period |
|---|---|---|---|
| State Bank of India (SBI) | Up to 7.5 Lakh | 8.15% – 10% | Course Duration + 1 Year |
| HDFC Credila | Up to 40 Lakh | 10% – 12% | Course Duration + 6 Months |
| ICICI Bank | Up to 20 Lakh | 9% – 11% | Course Duration + 6 Months |
| Axis Bank | Up to 40 Lakh | 9.15% – 11% | Course Duration + 6 Months |
| IDFC First Bank | Up to 35 Lakh | 8.5% – 11% | Course Duration + 6 Months |
| Avanse Financial Services | Up to 50 Lakh | 9.5% – 12.5% | Course Duration + 6 Months |
Note: Interest rates and loan amounts may vary based on eligibility and bank policies.
Know The Eligibility Criteria for Education Loans Without Collateral
- The very first Step is to get admission to a reputed MBA institute in India (IIMs, XLRI, SPJIMR, etc.)
- Secondly , you need to have a Strong academic record
- Third , Your Co-applicant (Parent/Guardian) with stable income proof
- Lastly , You (Parent/Guardian)need to have a Good CIBIL Score (for co-applicant)
Top Government Schemes for Collateral-Free Education Loans
Credit Guarantee Fund Scheme for Education Loans (CGFSEL)
- Covers loans up to ₹7.5 Lakh under the Indian Bank Association (IBA) Model.
- Applicable to public sector banks.
Dr. Ambedkar Central Sector Scheme
- Offers financial assistance to OBC and EWS category students.
- Covers loans up to ₹20 Lakh.
NSFDC Education Loan for SC Students
- Up to ₹20 Lakh loan amount.
- Interest rate as low as 4% per annum.
How to Apply for an Education Loan Without Collateral?
- Visit the bank’s website or nearest branch.
- Navigate through the portal and check eligibility or fill the application form from the branch.
- Submit required documents:
- Admission letter from MBA institute
- Co-applicant’s income proof
- Academic records
- KYC documents
- Bank verifies details & processes the loan approval.
- Loan amount disbursed directly to the institute.
