In India, education is very important for every family. Parents want their children to study well, go to college, or even abroad for higher education. But good education is costly. College fees, hostel charges, books, and travel – everything needs money.
For this reason, many students take education loan from banks. Normally, banks ask for a guarantor before giving the loan. But many families do not have a guarantor. The good news is, in India, you can also get education loan without guarantor.
This article will explain in very simple words what is guarantor, why banks ask for it, and how you can get education loan without guarantor.
What is a Guarantor in Education Loan?
A guarantor is a person (like parent, relative, or family friend) who promises to repay the loan if the student cannot pay. The bank feels safe when there is a guarantor.
Example: If Ravi takes an education loan but fails to pay, then the guarantor (his uncle or father) has to pay the money.
So, normally, banks ask for guarantor to reduce their risk.
Why Many Students Do Not Have Guarantor?
In India, many students come from middle-class or poor families. Sometimes:
- Parents have low income
- Parents already have loans
- No relative is ready to sign as guarantor
- Student wants to study abroad but family does not have strong financial background
In such cases, it is difficult to find guarantor. That is why many students search for loan without guarantor.
Is It Possible to Get Education Loan without Guarantor?
Yes ✅ In India, it is possible. Thanks to Government schemes and some banks/NBFCs, students can get loans without guarantor for certain amounts.
- For loans up to ₹7.5 lakh, no guarantor is required under the Indian Banks’ Association (IBA) model scheme.
- For higher loan amounts, guarantor or collateral (like house, property, FD, gold) may be required.
So, if you are planning for normal college in India, you can get loan without guarantor easily. If you are planning for study abroad, then higher loan needs guarantor, but some government schemes help in that too.
Government Schemes for Education Loan without Guarantor
1. Vidya Lakshmi Portal
This is a government portal where students can apply online for multiple bank education loans. Many banks give loans up to ₹7.5 lakh without guarantor under this scheme.
2. Credit Guarantee Fund Scheme for Education Loans (CGFSEL)
Under this scheme, students can get collateral-free and guarantor-free loans up to ₹7.5 lakh. The government gives guarantee to the bank.
3. Padho Pardesh and Other Minority Schemes
For minority, backward class, and economically weaker students, special subsidy schemes are available to reduce burden.
Documents Needed for Loan without Guarantor
Even if guarantor is not required, banks will still ask for basic documents:
- Aadhaar Card and PAN Card of student
- Admission letter from college/university
- Fee structure of course
- Previous mark sheets (10th, 12th, graduation if any)
- Address proof (electricity bill, ration card, voter ID)
- Income proof of parents (ITR, salary slip, bank statement)
Which Banks Give Education Loan without Guarantor in India?
Almost all public-sector banks follow IBA model scheme. Popular banks are:
- State Bank of India (SBI Student Loan Scheme)
- Punjab National Bank (PNB Saraswati Scheme)
- Canara Bank Education Loan
- Bank of Baroda Education Loan
- Union Bank of India Vidya Loan Scheme
These banks give loan up to ₹7.5 lakh without guarantor for studies in India and abroad.
How Much Loan Can You Get Without Guarantor?
- Up to ₹4 lakh → No guarantor, no collateral. Only parent’s co-borrower signature required.
- ₹4 lakh to ₹7.5 lakh → No guarantor needed, but parents are joint borrowers.
- Above ₹7.5 lakh → Guarantor or collateral is required (for most banks).
So, if your course fees are within ₹7.5 lakh, you can manage without guarantor.
Example
Let’s take example of Priya from Bihar. She got admission in a private engineering college in Pune. The total course fee is ₹6 lakh. Her father is a small shop owner and cannot arrange guarantor. Priya applied through Vidya Lakshmi Portal and got a loan from SBI under IBA model scheme. No guarantor was required. Now she can study freely without worrying about fees.
Advantages of Loan without Guarantor
- Helpful for students from poor or middle-class families
- Easy for small loan amounts up to ₹7.5 lakh
- No need to depend on relatives or outsiders
- Supported by government schemes
- Simple online process through Vidya Lakshmi portal
Disadvantages You Must Know
- For higher loan amounts (above ₹7.5 lakh), guarantor is still required
- Interest rates may be higher than secured loans
- Parents still have to be joint borrowers
- Repayment pressure comes after studies
How to Apply Step by Step
- Go to Vidya Lakshmi Portal (www.vidyalakshmi.co.in)
- Register with your email and mobile number
- Fill in your personal and educational details
- Upload required documents (Aadhaar, admission letter, mark sheets)
- Choose banks and apply for loan
- Bank will review and contact you
Tips for Students and Parents
- Always apply early, as bank takes time to process
- Compare interest rates of different banks
- Use government subsidy schemes to reduce interest burden
- Keep good communication with bank and repay on time after studies
Conclusion
Getting an education loan without guarantor in India is possible for students who want to study in India or abroad. Thanks to government schemes like Vidya Lakshmi Portal and IBA model education loan scheme, students can get up to ₹7.5 lakh without any guarantor.
This is a big help for students from middle-class and poor families. Education is the biggest power, and no student should stop studies because of money problem.
So, if you are planning for higher studies but don’t have a guarantor, don’t worry. Apply through trusted banks and government schemes, and you can still achieve your dream.