Introduction
As the demand for higher education grows, so does the need for financial support. How Much Education Loan Can I Get has become a primary funding source for students pursuing degrees in India and abroad. However, one crucial choice borrowers face is whether to apply for a no-collateral (unsecured) or secured (with collateral) loan.
The biggest question is: What’s the difference in the loan amount you can get between these two options? This article provides a clear comparison of unsecured & secured education loans, focusing on how much students can borrow under each in 2025, & which option suits different financial situations.
What Is a No-Collateral (Unsecured) Loan?
An unsecured education loan does not require the borrower to pledge any assets. Approval is based on the applicant's academic profile and the co-applicant’s financial background.
Typical Features:
- Loan Amount: Up to ₹7.5 lakh (public banks), ₹10–15 lakh (private banks/NBFCs for top colleges)
- Interest Rates: 10.5% – 13.5%
- Approval Depends On the co-applicant’s income and credit score, and the course institution's reputation.
- Processing Time: Faster
- Risk for Lender: High
What Is a Secured Loan?
A secured education loan requires the borrower to pledge an asset (like property, FD, or land). How Much Education Loan Can I Get This reduces the lender’s risk and increases the borrower’s eligibility.
Typical Features:
- Loan Amount: ₹20 lakh to ₹1.5 crore (based on collateral value and course)
- Interest Rates: 8.5% – 10.5%
- Approval Depends On the value and legality of collateral, the co-applicant’s financial standing.
- Processing Time: Slightly longer (due to legal verification)
- Risk for Lender: Low
Loan Amount Comparison (2025)
| Loan Type | Minimum | Maximum |
| No-Collateral Loan | ₹50,000 | ₹10–15 lakh |
| Secured Loan | ₹2 lakh | ₹1 crore or more |
Which One Should You Choose?
| Criteria | Choose No-Collateral Loan | Choose a Secured Loan |
| Collateral Available? | No | Yes |
| Loan Needed ≤ ₹10 lakh? | Suitable | Possible |
| Loan Needed > ₹20 lakh? | Difficult | Recommended |
| Studying Abroad | Limited to ₹7.5–15 lakh | Up to ₹1 crore+ |
| Interest Rate Preference | Higher | Lower |
| Urgency of Approval | Faster | Slight delay (due to verification) |
Conclusion
In 2025, the loan amount difference between no-collateral and secured education loans is significant. How Much Education Loan Can I Get? While no-collateral loans offer a convenient option for students seeking smaller amounts (up to ₹7.5–15 lakh), secured loans open doors to high-value funding—from ₹20 lakh to over ₹1 crore—ideal for premium institutions or international education.
Choosing between the two depends on your financial background, collateral availability, and academic plans. By understanding the amount difference & associated conditions, students and parents can make informed decisions that align with both their educational goals & financial capabilities.