Collateral education loans require applicants to provide security or collateral in the form of an asset. Non-collateral education loans do not require any collateral or assets. Collateral education loans generally have a lower interest rate than non-collateral education loans but require a significant asset as collateral. Non-collateral education loans have higher interest rates but do not require any collateral. Which one to choose depends on your overall profile. If you are confused you can request a callback from our financial officers. they will guide you accordingly.