NBFCs offering Low Interest Education Loan Without Collateral for Abroad Studies in 2026

 For years, students believed only public sector banks gave them the 'best' deal on loans. NBFCs? They were often seen as the expensive, last resort option. But that’s old-school thinking. The finance world has totally changed! Specialized NBFCs are now major players who offer highly competitive rates because they focus purely on your merit and future potential, not on bureaucracy or a pile of property deeds. They are quick, flexible, and they’re willing to bet big on you. This means faster approvals and less hassle.

This is where smart research pays off. We've zeroed in on three NBFCs who are seriously disrupting the market, proving you don't have to settle for high interest or excessive paperwork. Read on to see who can give you the best education loan without collateral.

3 NBFCs Offering Low-Interest Education Loan Without Collateral for Studies Abroad

Unsecured loans across the board are known for high interest rates due to the higher risk the lender has to bear. However, there are some NBFCs in India that offer unsecured loans on a comparatively lower interest rate like:

1. Credila

Credila Financial Services focuses on education loans and provides an appealing program for students going overseas. They are among the top options for candidates without assets to guarantee because of their very respected provision of large, collateral-free education loans. Although unsecured loans usually come with greater interest than secured ones, Credila is still quite affordable. 

With flexible repayment terms, their customized programs provide funding up to a hefty ceiling (for example, ₹75 Lakhs or more, depending on profile), covering 100% of the cost of education—including tuition and living expenditures. For fiscally stable pupils wishing to fund their worldwide aspirations without difficulty, it's a great solution.

2. Auxilo

Auxilo Finserve is a leading RBI-registered NBFC that empowers students pursuing global education, emphasizing a swift and transparent loan process.3 They stand out by offering substantial collateral-free loans, often up to ₹50 Lakhs or even higher, based on the applicant's profile, including the university's ranking. 

Their scheme provides 100% financing, covering tuition, living, and other expenses with flexible repayment options and a competitive floating interest rate (starting from around 11.00% or more, subject to profile). Auxilo uses a scientific evaluation method to assess the student's merit, ensuring a tailored, hassle-free path to their study abroad dreams.

3. InCred

InCred is a dynamic, technology-driven NBFC that has rapidly become a preferred financier for education abroad. They are recognized for their commitment to providing collateral-free loans up to a high limit, often reaching ₹60 Lakhs or more, based purely on the student's academic profile and the course's future earning potential. 

Their loan scheme is highly merit-based, offering competitive, floating interest rates (starting around 11.00%) that are tailored to the student’s university and test scores. InCred covers up to 100% of the cost of education, offering flexible repayment, including a moratorium period, to ensure your focus remains squarely on your global degree.

Now that we have seen the NBFCs offering unsecured loans with the lowest student loan interest rates, let’s see some tips that can help students choose the right loan provider.

5 Tips to Choose the Right Loan Provider for Education Loan Without Collateral to Study Abroad

Here are some tips that can help study abroad aspirants to choose the right loan provider for their abroad education:

1. Find the True Cost of the Loan

Students often compare the interest rates of loan schemes offered by banks and NBFCs. They usually miss out on things like processing fees, admin fees, forex markup, and late payment penalties. Calculating the total cost of borrowing over the complete tenure gives students a better idea about affordability.

2. Check Country-Specific Eligibility of the Loan Provider

Different lenders have different policies when it comes to risk for certain countries, courses or universities. Students usually only focus on rejection rates. They should also confirm if their chosen study destination and program are a part of the lenders preferred list before applying.

3. Understand the Co-Applicant Income Requirements

Collateral-free loans mostly depend on the financial capacity of a co-applicant. Applicants for loans sometimes miss minimum income limits, approved vocations, or income verification demands, which could cause rejections.

4. Compare the Turnaround Time for Sanctioning

Students should compare the turnaround time as different lenders offer faster approval but internal verification delays can lead to longer timelines. Students should check the average sanction times by taking to students who have availed the lenders services. This will give them an idea if the lender can meet the fee and visa payment deadlines effectively.

5. Verify Repayment Flexibility & Moratorium Policies

Students usually assume that moratorium periods are free of any loan payment, however some lenders might require students to pay simple interest or partial simple interest. They should compare the moratorium rules and prepayment penalties to ensure their budget matches the bank’s repayment structure.

This brings us to the end of this article. Students who want to pursue their abroad education with an education loan and want to learn more about their options, should reach out to global education loan experts. These professionals keep an eye on the latest updates on banks and their policies. They can help students to choose the right loan for their studies. With their help, students can choose from banks or NBFC education loan. With the help from these experts, students can get the best deal on their abroad education loan.