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Education Loan Without Parental Income For Abroad Studies (2025-26)

A person holding jar filled with money in their hand demonstrating education loan without parental income for abroad studies.

While taking an education loan, it is possible that everything a bank mentions as a requirement won’t be available on your end. It’s completely fine! Not having certain aspects like collateral or a co-applicant will never stop you from taking an education loan.

Certain banks offer education loans without parental income for abroad studies.

Want to know everything about these banks? Keep reading! 

Need Of Parental Income While Taking An Education Loan

You might wonder why parental income is needed to take education loans. But first, let’s understand the context of it!

For students who are opting for a student loan for full-time study in top universities in India and abroad, there has to be a guarantor or a co-applicant who will take care of their repayment if the student isn’t able to pay the money after graduation.

The co-applicant, in most cases, has to be a parent. To ensure that the parent is capable of repaying the loan amount regularly, accessing their financial health is essential, which means assessing the parental income is important.

Banks mandatorily ask for the following documents required for education loans abroad to check parental income: 

  • 6 Months’ Salary Slips
  • 6 Months’ Bank Statements
  • 3 Months’ ITR 

Alternatives For Education Loan Without Parental Income For Abroad Studies

If parental income is unavailable when applying for a loan, there are certain alternatives. In an abroad education loan, co-applicants are of two types: Primary and Financial Co-applicants.

Parents without income options can be primary co-applicants, but someone else has to be the financial co-applicant. 

A financial co-applicant is best if you can’t prove your parents’ income. Parents, parents-in-law, siblings, parents’ siblings, spouses, and first cousins can co-apply for loans. The table given below shows the eligible alternative co-applicants other than parents:

LenderEligible Alternative Financial Co-Applicant
Axis Bank Education LoanBrother
ICICI Bank Education LoanBrother, spouse, maternal uncle, or paternal uncle
IDFC FIRST Bank Education LoanBrother, or spouse
AvanseLegal guardian, sibling, or blood relatives
HDFC CredilaSiblings or blood relatives
InCredSiblings, spouse, or blood relatives
AuxiloSibling, legal guardian, or blood relatives

Another option is to select a bank or NBFC that doesn’t need any co-applicant. 

International Banks That Provide Education Loan Without Parental Income For Abroad Studies

International NBFCs are flexible with their loan terms and allow students to borrow without parental income. Their eligibility criteria is mainly based on collateral security or the applicant’s job prospects and academic record. We have listed a few NBFCs you can go for: 

1. MPower Finance

MPower Financing is the best bank that gives loans without requiring collateral or co-applicant. They offer reasonable interest rates and only give loans to students studying in the UK and Canada.

The loan amount is in CAD or USD, depending on the university. The table given below has the key features of these loans:

ParameterFeatures
Loan LimitUp to $100,000
MPOWER Education Loan Interest RateGraduate – up to 13.98% USDUndergraduate – up to 15.01% USDA discount of 0.25% for auto-signing up
Processing Fee5% of the loan amount
Moratorium Period / Grace PeriodCourse duration + 6 months (Partial simple interest needs to be paid)
Repayment Duration10 years
Co-applicant / Co-signerNot required

2. Prodigy Finance  

Unlike other banks, which depend on collateral or credit history, Prodigy Finance looks at a student’s employability chances and academic merit.

The table given below has the critical features of the Prodigy Finance education loan. You can go through it thoroughly: 

ParameterFeatures
Prodigy Finance Maximum Loan100% cost of attendance
Prodigy Finance Rate of Interest11.80%
Repayment Tenure7-20 years
Moratorium Period6 months post-course completion
Collateral OptionNot required
Processing FeesNIL
Co-borrower OptionNot required
Tax BenefitsNA
Courses CoveredHigher education in top-tier universities abroad

3. Leap Finance Education Loan  

The Leap Finance Company provides student loans to Indians who want to study abroad. It gives college loans to Indian students in the U.S. and Canada.

Many young Indian students trust Leap Finance Education Loan because of its low paperwork requirements, reasonable interest rates, and counselling.

Leap finance might require a co-applicant for non-collateral loans. 

ParameterDetails
Loan AmountUp to 100% of the tuition fee or 100,000 USD
Leap Finance Interest Rates8.5% to 10.95% USD
Leap Finance Processing Fees1.5% to 2% of the loan amount
Moratorium PeriodCourse duration + 6 months
Co-applicant RequirementMight be needed for loans without collateral
Repayment Tenure7 to 10 years, depending on the profile

How Can UniCreds Help You Get An Education Loan Without Parental Income?

UniCreds assists students in securing education loans without relying on parental income through several tailored strategies: 

  • Non-Collateral Loans: UniCreds collaborates with financial institutions that offer unsecured education loans, eliminating the need for collateral. These loans are often based on the student’s academic merit and the reputation of the admitting institution, reducing dependence on parental financial standing.
  • International Lender Partnerships: Through partnerships with international lenders like MPower Financing and Prodigy Finance, UniCreds facilitates loans that do not require a co-applicant or collateral. These lenders assess the student’s future earning potential and academic background, making them suitable for students lacking traditional financial support.
  • Merit-Based Loan Assistance: UniCreds guides students towards lenders offering merit-based loans, which focus on academic achievements and admission to reputable institutions, rather than parental income. This enables deserving students to access necessary funds based on their potential. 
  • Comprehensive Support and Counseling: UniCreds provides personalised counseling to help students navigate the loan application process, ensuring they meet eligibility criteria and compile the required documentation, thereby enhancing the likelihood of loan approval without parental income proof. 

Some Tips To Get An Education Loan Without Parental Income For Abroad Studies

Besides making a blood relative a financial co-applicant or selecting from the international lenders given above, you can try out the following ways to get an education loan without parental income:  

  • Go for merit-based loans. Some banks provide education loans based on your academic score and your admission to a famous institution.  
  • Find banks with tie-ups with universities that offer education loans without co-applicants. It will be easy for you if you are looking for admission to the university that the bank has partnered with. 
  • Be your co-applicant. If you are employed and planning to study and work together, submit your own ITR or bank statements to prove that you can repay your loan. 
  • Many banks even offer vocational education loans, which are approved based on the course and institution rather than parental income. 

To make all of this even more accessible, contact UniCreds. We help you get student loans based on your eligibility. Whether you have a co-applicant, we will get you the perfect education loan without hidden charges! 

FAQs

1. What are the minimum criteria I need to fulfil to get a loan without any income?

Firstly, you should be above 18 years of age, be employed, have a good academic score, and study at a famous university with employment opportunities to get a loan without parental income.

2. Can I get an education loan without a co-applicant?

Yes, you can get an education loan without a co-applicant by applying through international lenders like MPower Financing, Prodigy Finance, Leap Finance, etc.

3. Can I get an education loan if my father is retired? 

Yes, you can get an education loan if your father is retired. You can have your blood relative as a co-applicant or go for a lender who doesn’t require a co-applicant altogether.

4. Can I get an education loan if my parents are unemployed?

If your parents are unemployed, you can still get an education loan. Just prove your academic merit or future income.

5. What are the banks giving education loans without co-applicant?

MPower Finance, Prodigy Finance, and Leap Finance are some of the banks that offer loans without parental income or co-applicants. 

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A person holding jar filled with money in their hand demonstrating education loan without parental income for abroad studies.

Education Loan Without Parental Income For Abroad Studies (2025-26)

🚀 Over 5K Students Secured Abroad Education Loan With UniCreds!