Education Loan without Collateral
How much you can borrow unsecured — CGFSEL, premier-institute lists, PM-Vidyalaxmi and NBFC options.
Updated 27 September 2026 · 8 lenders trackedWhat you need to know
You can borrow up to ₹7.5 lakh from banks under the IBA model scheme with no collateral and no third-party guarantee, because the government’s CGFSEL guarantee covers the bank. Beyond that, collateral-free loans depend on your institute: premier-list and PM-Vidyalaxmi institutions get much higher unsecured limits, and NBFCs lend more at higher rates.
Collateral-free limits by lender
| Lender | Collateral-free limit | Margin money | Moratorium |
|---|---|---|---|
| Union Bank Education Loan | ₹7.5 lakh for CGFSEL-covered loans (BankBazaar also lists ₹4 lakh — confirm with the branch) | 5% (India) / 15% (abroad) | Course period + grace period |
| Bank of Baroda Education Loan | Baroda Gyan / Scholar: ₹4 lakh. Premier Institutions (India): Category AA ₹40 lakh, A ₹30 lakh, B ₹15 lakh, C ₹10 lakh | Baroda Scholar: nil up to ₹4 lakh, 15% for ₹4–7.5 lakh, above ₹7.5 lakh nil (premier) / 10% (non-premier). Premier Institutions (India): nil / 5% / nil | Course + 1 year |
| Canara Bank Education Loan | IBA Model scheme: ₹7.5 lakh (CGFSEL cover); Vidya Turant: fully collateral-free | IBA Model: nil up to ₹4 lakh; 5% (India) / 15% (abroad) above. Vidya Turant: nil | Course + 1 year |
| SBI Education Loan | Student Loan ₹7.5 lakh; Scholar Loan up to ₹50 / ₹40 / ₹30 lakh for List AA / A / B institutes (with parent co-obligation); Global Ed-Vantage up to ₹50 lakh at select institutions | Student Loan: nil up to ₹4 lakh; 5% (India) / 15% (abroad) above. Scholar Loan: 100% finance | Student Loan and Scholar Loan: course + 1 year; Global Ed-Vantage: course + 6 months |
| Bank of India Education Loan | ₹7.5 lakh (parent co-borrower; CGFSEL cover) | Nil up to ₹4 lakh; 5% (India) / 15% (abroad) above | Course + 1 year |
| PNB Education Loan | ₹7.5 lakh (with parent co-borrower) | Nil up to ₹4 lakh; 5% (India) / 15% (abroad) above | Course + 1 year |
| Credila Education Loan | Up to ₹75 lakh (profile and university dependent) | Nil — up to 100% of cost can be financed | Course + 12 months; choose partial simple interest, full simple interest or full EMI during study |
| HDFC Bank Education Loan | Up to ₹4 lakh (co-borrower required) | Nil up to ₹4 lakh; 5% (India) / 15% (abroad) above | Course-linked for select courses; simple interest is charged during the moratorium |
As published by each lender or compiled by aggregators; premier-institute limits depend on the list your institute is on.
Collateral thresholds
| Loan amount | Margin money | Security |
|---|---|---|
| Up to ₹4 lakh | Nil | Parent/guardian as co-borrower; no collateral, no third-party guarantee |
| Above ₹4 lakh up to ₹7.5 lakh | 5% (India) / 15% (abroad) | Co-borrower; no collateral or third-party guarantee — covered by CGFSEL |
| Above ₹7.5 lakh | 5% (India) / 15% (abroad) | Tangible collateral of suitable value (property, FD, LIC policy, etc.) plus assignment of the student’s future income |
| Premier institutes (bank lists) | Often nil | Collateral-free up to much higher limits — e.g. SBI Scholar ₹30–50 lakh, Bank of Baroda ₹10–40 lakh, Canara Vidya Turant fully unsecured |
| PM-Vidyalaxmi institutes | As per bank | Collateral-free and guarantor-free; government guarantees 75% of loans up to ₹7.5 lakh |
Based on the IBA Model Education Loan Scheme followed by public-sector banks; private banks and NBFCs set their own limits (HDFC Bank ₹4 lakh unsecured; Credila up to ₹75 lakh).
Ways to borrow more without collateral
- Choose an institute on a bank’s premier list (SBI Scholar, Bank of Baroda Premier, Canara Vidya Turant)
- Check if your institute is a PM-Vidyalaxmi QHEI — collateral-free, guarantor-free loans
- For abroad, check bank schemes for select universities (e.g. SBI Global Ed-Vantage up to ₹50 lakh)
- Consider an NBFC such as Credila (up to ₹75 lakh), comparing the higher rate
- Offer an FD or insurance policy as security instead of property
Frequently asked questions
Is an unsecured education loan costlier?
Often slightly: SBI Student Loan is 9.90% up to ₹7.5 lakh unsecured vs 9.40% secured. Premier-institute loans are the exception — unsecured yet among the cheapest.
Does CGFSEL cost me anything?
The guarantee is between the bank and NCGTC; check your sanction letter for any charge passed on.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.