Education Loan for CFA

Pursuing the Chartered Financial Analyst (CFA) certification is a transformative step toward building a high-profile career in the financial world. However, with course costs, exam fees, and study materials potentially amounting to INR 11,000 to 3.5 Lakh, financing this qualification can be challenging for many aspirants. 

This is where an education loan for CFA can make all the difference. In this article, we’ll dive deeper into how you can secure the right education loan for CFA and explore the top lenders. Keep reading to learn more!

What is CFA?

The Chartered Financial Analyst (CFA) is a globally recognised professional certification offered by the CFA Institute, primarily aimed at financial and investment professionals. The CFA designation is considered one of the most respected credentials in the finance industry, particularly in investment management, portfolio management, and financial analysis.

To earn the CFA charter, you must pass three levels of exams that cover a broad range of financial topics. CFA certification holders often pursue careers in investment banking, asset management, hedge funds, and research analysis.

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To learn more about the CFA Course, read: CFA Exam Fees 2024-25: Dates, Cut Off & Registration Process.

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Education Loan for CFA: Key Features

Education loans for CFA programs come with several beneficial features, offering flexibility and ease in financing your certification. 

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Here's a table highlighting the key features of CFA education loan across major lenders.

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Also Read: Section 80E: Education Loan Tax Benefits Explained!

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Key Factors Lenders Evaluate Before Approving an Education Loan for CFA

Lenders assess several crucial elements when considering a loan application, such as the following.

1. Educational Institution

The reputation and type of the education institute play a role.

2. Total Study Costs

All expenses related to education, such as tuition fees, computer usage, textbooks, accommodation, and food, are considered.

3. Future Earning Potential

The potential income the student is expected to earn after completing their studies is evaluated.

4. Student's History

The applicant’s previous academic and financial records are reviewed.

5. Creditworthiness

Both the student’s and the co-applicant’s credit scores are taken into account.

6. Collateral Security

Assets like property, fixed deposits, and insurance policies may be required as security.

7. Repayment Terms

Available options for repaying the loan are assessed.

8. KYC Documentation

Verification documents for both the student and co-applicant, such as identification and address proof, are necessary.

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Additional Criteria for Higher Loan Limits and Enhanced Creditworthiness

Some lenders may extend loan limits beyond INR 4 lakhs and evaluate other factors that contribute to your creditworthiness, including the following.

1. Strong Credit Score

A high credit rating can influence the approval of larger loan amounts.

2. Insurance Policies

Policies with a surrender value are considered as additional security.

3. Previous Lender Relationship

A positive history with the lender can impact loan approval.

4. No Loan Defaults

A clean record with no defaults on past loan repayments is crucial.

5. Timely EMI Payments

Consistent and timely payment of EMIs on existing loans reflects financial reliability.

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Education Loan for CFA: Major Lenders

Getting an education loan for CFA might be tricky because CFA is a correspondence course without a set duration. Whether or not you pass the exam determines whether you can finish the course. As a result, banks find it very dangerous to approve student loans for CFA-like courses.

Here is the list of banks and NBFCs that can provide you an education loan for CFA:

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‍Minimal Documentation. Higher Chances of Approval. Easy Online Processes. Check Your Eligibility.

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Education Loan for CFA: Eligibility

Here’s a closer look at the eligibility criteria for securing an education loan for the CFA program.

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Education Loan for CFA: Documents Required

Different Banks might require different types of documents to be eligible for an education loan for CFA or similar correspondence/ professional course. Here is a list of of documents you will majorly require:

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Education Loan for CFA: Application Process

Applying for an education loan is an easy process designed to make financing your education as smooth as possible. 

Here are the steps to follow for the application process for securing an education loan for the CFA program.

Online Process

This is the usual process with most lenders. 

Step 1: Go to the official lender website.

‍Step 2: Select "Education Loan." It's an option under the 'Loans' menu. Click on the preferred loan.

‍Step 3: Tap or click 'Apply Now' on the following page.

‍Step 4: Fill out the registration form by filling in the necessary details and press submit

‍Step 5: A Bank representative will call you to complete your request.

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Offline Process

Step 1: Apply for a loan at the Bank branch closest to you.

‍Step 2: After reviewing your profile, you might need to send in some documents.

‍Step 3: Take the required paperwork to the branch that's closest to your home.

‍Step 4: Once all the documents are verified, the loan amount will be disbursed to the account.

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Must Read: How to apply for Education Loan in India- Complete Process

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Benefits of an Education Loan for CFA

Are you thinking if you should take up an education loan? 

Taking a CFA education loan comes with a range of benefits that make financing your studies more manageable and accessible. Have a look at some of the top benefits listed below.

1. Low-Interest Rates

You can secure loans with competitive interest rates, often based on the Prime Lending Rate (PLR), with an additional margin of up to 1%. This makes the overall borrowing cost lower than other types of loans, like personal loans. Explore the differences between an education loan vs a personal loan. 

2. Flexible Repayment Schedule 

Repayment typically begins one year after completing your CFA studies or upon securing a job, whichever comes first. This grace period allows you to focus on completing your certification without the pressure of immediate repayment.

3. Interest Benefits During the Study Period 

During your study period, you can pay only the simple interest on your loan, helping you manage monthly payments effectively until your full earnings kick in post-graduation.

4. Tax Benefits

Under Section 80E of the Income Tax Act, you can claim tax deductions on the interest paid during the loan's tenure, offering significant savings on your overall repayment amount.

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Challenges of Getting an Education Loan for CFA 

Securing an education loan for the CFA program can be challenging for several reasons. 

Here’s a look at the challenges faced while getting an education loan for CFA.

Banks Don’t Provide Loans for Correspondence Courses

As mentioned before, students face a challenge while getting an education loan for CFA as many banks don’t recognise professional and correspondence courses such as CFA. You might have to provide several documents for loan approval.

‍Long Processing Time 

Many banks have a very long processing time for education loans, making the process longer than it should be. 

‍Complicated Eligibility Criteria

Most banks have the creditworthiness and CIBIL scores as the eligibility criteria for education loan for CFA. You might also require additional security for loans above a certain limit.

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Also Read: Education Loan Benefits 2024 : India and Aboard

Overcome these challenges by picking out the right partner for your education loan for CFA. 

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Propelld offers education loans through a marks based eligibility criteria, through a quick and easy process and for most professional courses. 

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Transform your CFA aspirations into reality with Propelld's seamless education loan solutions. Propelld’s student-centric services are designed to support you every step of the way.

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Why Propelld?

Here are some of the top benefits that Propelld offers.

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Empower your future in finance with Propelld—apply now and take the first step towards your CFA success!

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Important FAQs About an Education Loan for CFA

What is the maximum amount I can get for a CFA education loan? 

The maximum loan amount for a CFA education loan can vary depending on the lender, but it can go up to INR 30 lakh for studying abroad and INR 15 lakh for studying in India. 

What are the eligibility criteria for a CFA loan in India? 

To be eligible for a CFA loan in India, you must be an Indian citizen, between 21 and 65 years old, and have a minimum income or a co-applicant with a stable income. Additionally, you must be pursuing a CFA program from a recognised institute.

What are the benefits of taking an education loan for CFA? 

Taking an education loan for CFA offers several benefits, including low interest rates, flexible repayment schedules, and coverage of all related expenses, from tuition to study materials. It also provides tax benefits and helps you focus on your studies without financial stress.

Do I need collateral to apply for a CFA education loan? 

No, you don't need collateral to apply for a CFA education loan up to INR 4 lakh. 

How do I repay my CFA education loan? 

You can repay your CFA education loan through flexible EMIs, which typically begin one year after completing your CFA studies or upon securing a job, whichever comes first.

What documents do I need to apply for a CFA education loan? 

To apply for a CFA education loan, you'll need documents such as an admission letter, estimated cost statement, KYC documents, educational qualification certificates, and credit score.

Can I get a CFA education loan with a low credit score? 

While a good credit score is preferred, some lenders may consider your application for a CFA education loan with a low credit score if you have a co-applicant with a good credit score.

How long does it take to get approved for a CFA education loan? 

The approval process for a CFA education loan can vary depending on the lender, but some providers like Propelld offer instant approval.

Do I need a co-applicant for a CFA education loan? 

If you're not employed, you may need a co-applicant, such as a parent or guardian, to support your CFA education loan application.

What is the interest rate for a CFA education loan? 

The interest rate for a CFA education loan varies depending on the lender, but it's often based on the Prime Lending Rate (PLR) with an additional margin of up to 1%.

Can I prepay my CFA education loan? 

Yes, you can prepay your CFA education loan without any additional charges or penalties.

How do I apply for a CFA education loan? 

You can apply for a CFA education loan through the lender's website, mobile app, or by visiting their branch. You'll need to submit the required documents and information for verification.

What are the tax benefits of a CFA education loan? 

Under Section 80E of the Income Tax Act, you can claim tax deductions on the interest paid during the loan's tenure, offering significant savings on your overall repayment amount.

Can I get a CFA education loan to study abroad? 

Yes, you can get a CFA education loan for studying abroad, with loan limits up to INR 30 lakh. However, the lender may require additional documentation and collateral or security.