How no-collateral student loans work for studying abroad

If you’re exploring ways to fund your studies abroad, you may be trying to understand how international student loans actually work.

The key question for many students is simple. Can I apply for funding without needing collateral or someone else to support the application?

For eligible students, the answer may be yes.*

Here’s a clear breakdown of how this type of loan works and what to expect.

What is a no-collateral student loan?

A no-collateral student loan is designed so eligible students can apply for funding without securing the loan against property or other assets.*

That can make funding more accessible for students who may not have property to pledge or who want a more straightforward route to financing their degree.*

How it works

With this type of loan, the application is assessed using a broader view of your profile.*

That may include factors such as:

• Your chosen university and programme

• Your academic background

• Your overall application profile

• Your likely career path after graduation

This means the assessment is not based only on assets or traditional lending criteria.*

Why students consider this option

For many international students, this kind of structure can make study abroad feel more achievable.*

It may help because:

• You do not need to provide collateral

• The process can be completed online

• Funding may be available for tuition and, where applicable, living costs within approved limits

This can be especially relevant if you are building a funding plan across several sources and need a way to cover the remaining gap.*

What to keep in mind

A loan offer is still based on your individual profile.*

That means the amount available, the rate and the final structure may depend on factors linked to your application and chosen programme.*

It is also important to understand the full picture before accepting an offer, including how much you may be able to borrow, how repayment works and what costs the funding can cover.*

What repayment looks like

With Prodigy Finance, we include USD 100 per month in-school payments, and full monthly repayments begin 6 months after your course is complete.*

Understanding that structure early can help you plan more confidently for both your degree and the period after graduation.*

What stays the same

Whatever programme you choose, some parts of the process remain consistent.

• Loan offers are tailored to your individual profile and programme

• Funding is linked to approved education costs

• When we send the funds to your school, the money goes directly to the university

• The process is designed for international postgraduate students studying abroad

A simple example

Imagine you have been accepted into a postgraduate programme abroad.

You already have some savings, though not enough to cover your full tuition and living costs. You want a funding option that does not rely on property or other assets.

In that case, a no-collateral loan may help cover the remaining gap, depending on your eligibility and application profile.*

Final thoughts

Understanding how no-collateral student loans work can make it easier to decide whether this kind of funding fits your plans.*

For many students, the goal is not to find one perfect solution. It is to build a practical funding plan that supports the next step.

That often starts with understanding your costs, knowing what options may be available, and choosing an approach that works for your situation.*

Ready to explore your options?

If you’re planning your studies abroad and want to see what funding may be available, you can check your loan eligibility and explore your options based on your profile and chosen programme.*

*Loan and promotion offers are subject to our eligibility, funding, and credit assessment criteria. Loan amounts are subject to the cost of attendance limits set by schools.