There is no denying the benefits of taking education loans from Government banks that offer mostly collateral education loans for abroad studies. But what about students who do not have anything to pledge?

Private banks and NBFCs come to the rescue of such students by offering education loans without collateral. NBFCs particularly offer higher loan amounts as unsecured education loans for abroad studies.

However, there are a few countries that do not accept education loans from NBFCs as a source of funding. The source of funding matters during one's visa process for getting a student visa. On top of that NBFCs too do not provide education loans for just any country. 

This article aims to give you a clear idea of the exact list of countries that are eligible for an NBFC education loan. In addition to that, you will also get to know about the unsecured education loan amounts offered for these countries.

Do Government Banks offer unsecured education loans?

All government banks offer unsecured education loans but only of up to INR 7.5 Lakhs. Only NBFCs and private banks offer higher loan amounts without collateral.

List of countries on the top priority list for an NBFC Education loan

Countries like the USA, Canada, and Germany are some of the most popular choices for students who wish to study abroad. Hence, most NBFCs and private banks offer NBFC education loan amounts exceeding INR 7.5 Lakhs to students who are accepted into universities located in these countries. The maximum NBFC education loan amount can go up to INR 60 Lakhs depending on the country. 

Below is the list of top 5 countries that NBFCs provide unsecured education loans for-

1. The USA
2. The UK
3. Canada
4. Germany
5. Ireland

Countries with top universities & the final NBFC education loan amount granted for them

Below is the list of countries and the maximum loan amount granted to them

The European nations, France, Ireland, and the Netherlands are some of the other popular destinations for higher education chosen by Indian students. Most lenders offer an NBFC education loan amount of up to INR 10 to 15 Lakhs for students who have been accepted into the universities located in these countries. 

However, higher NBFC education loan amounts are possible for those who have been admitted into prestigious universities in these countries. HEC, Paris, TU-Delft, Karolinska Institute in Sweden, SDA Bocconi, IE Business School, etc. are some of the top-rated universities which are eligible for an NBFC education loan of up to INR 40 Lakhs.

It is to be noted that the interest rates in NBFCs are subject to the country one chooses for education. Like, for the US, it is 11-12%, and for others 12-13.5%.

Education loan terms in NBFCs like interest rates, loan amount, processing fee, etc are negotiable in nature. So if you apply via WeMakeScholars, our team will negotiate with the lender on your behalf and get you the best deal possible. Moreover, students who apply for NBFC education loans through us get to avail of a 0.5% waiver on their unsecured education loan interest rates.

Issue of acceptance of education loans from NBFCs 

So, as mentioned, there are a few countries that do not accept education loans from NBFCs as a source of funding during the student visa process.

New Zealand and Australia are two countries that have uncompromising immigration policies regarding student visas. One of the biggest hurdles faced by students who borrowed an NBFC education loan to fund their higher studies in these countries is the fear of their student visa being rejected. 

A common factor among the immigration rules of Australia, as well as New Zealand, is the fact that a non-collateral education loan from NBFCs is not viewed as a secured source of funding by either country.

So does this mean that it is not possible to get an NBFC education loan to fund the higher studies in countries other than those mentioned above? 

Absolutely not! As discussed in episode nine of the Loanflix web series, it depends on the overall ranking of the university into which candidates have been accepted. There are several countries that are essentially not in popular demand for higher studies. NBFCs make an exception for students who have been accepted into well-known universities located in such countries. Students can avail an NBFC education loan of up to INR 60 Lakhs to study in educational institutions located in such countries.