Best Education Loan for Diploma Course in India: Eligibility, Documents & Interest Rates

In India, students can apply for education loans for diploma courses as secured or unsecured options. Secured loans, requiring collateral, offer up to INR 2 crore at interest rates starting from 8.55%, while unsecured loans go up to INR 40 lakh in India and ₹1.5 crore abroad, with rates starting from 9.55%. Banks and NBFCs offer these loans with lower interest rates than degree programs and a quick approval process. Keep reading to learn more about diploma education loans in India.

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Education Loan for Diploma Course in India: Highlights

Here are the key details for the education loan for diploma course in India: 

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Need an education loan? Learn the complete application process on how to apply for an education loan in India, including eligibility, required documents, and loan approval steps.

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Education Loan For Diploma Course Abroad 

Securing the right education loan is essential if you're considering a diploma course abroad. From loan limits and interest rates to repayment policies and covered expenses, here's a comprehensive overview to help you navigate your financing options effectively.

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Education Loan for Diploma Course in India: Eligibility Criteria

Students applying for an education loan to pursue a diploma course in India must fulfill certain eligibility conditions. The following table outlines the key requirements:

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Education Loan for Diploma Course in India: Required Documents 

Students must submit specific documents to apply for an education loan for a diploma course. Below is a categorised list of essential documents required:

Basic Documents for Education Loan for Diploma Course in India

Academic Documents for Education Loan for Diploma Course in India

Financial Co-Applicant's Income Documents

Additional Required Documents for Education Loan for Diploma Course in India

Collateral Documents (For Secured Education Loans)

For applicants opting for a secured education Loan for diploma course in India, collateral documents are crucial in the loan approval process. Below are the essential collateral documents required:

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Education Loan for Diploma Course in India: Expense Covered

The loan includes various educational expenses to support students throughout their studies. These expenses cover:

• College, school, or hostel fees
• Charges for exams, libraries, and laboratory facilities
• Cost of books, study materials, uniforms, and necessary equipment
• Computer purchase, if required for the course (up to 20% of tuition fees)
• Caution deposit, building fund, or refundable deposits (up to 10% of tuition fees)
• Travel costs for students studying abroad
• Two-wheeler purchases up to ₹50,000/-
• Additional costs like study tours and project-related expenses

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Education Loan Eligibility Courses in India 

Students can apply for an education loan for professional courses to pursue diploma programs at different academic levels, including after Class 10, after Class 12, graduate diploma courses, and postgraduate diploma programs. 

Below is a list of some eligible diploma courses:

Are you seeking a diploma in Hotel Management and Catering Technology but need financial support? Many banks and financial institutions offer education loans for diploma courses in Hotel Management and Catering Technology, covering tuition fees, accommodation, and more.

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Education Loan for Diploma Course in India: Top Banks 

Several banks provide education loan for diploma course in India with different loan schemes, interest rates, and repayment options. Below is a comparison of education loan schemes from major banks:

State Bank of India

Plan your education financing with confidence using the Education Loan EMI Calculator. Get instant EMI estimates, compare loan options, and choose a repayment plan that works for you. 

Bank of Baroda

Union Bank of India

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Education Loan for Diploma Course in India: NBFCs Offering 

Non-Banking Financial Companies (NBFCs) offer competitive interest rates, higher loan amounts, and customised repayment plans, making them a viable alternative to traditional banks. 

Below is a comparison of education loan offerings from leading NBFCs:

HDFC Credila

Avanse

Propelld

Get an education loan without collateral! Propelld offers instant approval and flexible repayment options to fund your studies easily. Apply now!

InCred

Auxilo

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Education Loan for Diploma Course in India: Scholarships To Study 

Students seeking financial assistance for their diploma education can explore various scholarships offered by universities and organisations worldwide. These scholarships help cover tuition fees, living expenses, and other educational costs. Below are some notable scholarship opportunities:

• HEST 2023 – Higher Education Scholarship Test for Indian Students
• Tasmania University Cricket Club Scholarship 2023
• Sarawak Energy - UNITEN Scholarship Programme 2023
• R&D Systems Scholarship 2023
• Destination Australia Program Scholarship – University of New England 2023
• President's International Baccalaureate (IB) Scholarship – Northern Arizona University 2023
• Griffith College Diploma to Degree Scholarship 2023
• International Undergraduate Scholarship – Laidlaw College 2023
• RMIT University STEM Scholarships 2023
• Curtin Singapore Academic Scholarship for International Students 2022

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Education loan for diploma course in India provide financial support to students, making quality education accessible. With various banks and NBFCs offering loans, students can choose the best option that fits their needs. Proper research and understanding of loan terms can help applicants make informed decisions and focus on their education without financial stress.

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Why Propelld?

Propelld is a good choice for an education loan because it offers flexible repayment options, quick approval, and loans without requiring heavy collateral. It is beneficial for students pursuing diploma courses, as it provides customised loan plans with competitive interest rates.

The following are the primary benefits of Propelld.

Take the next step in your academic journey - Apply for an education loan today!

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FAQs for Education Loan for Diploma Course in India

How to Apply for an Education loan for diploma course in India Online?

For education loan for diploma course in India apply online; first, you need to compare lenders, check eligibility, and gather necessary documents like ID proof, admission letter, and income details. After that, fill out the application form, submit documents, and wait for verification. Once approved, the loan is disbursed directly to the institution.

Can I get an education loan for a diploma course in India?

Many banks and financial institutions offer education loans for diploma courses in India. You can apply for a secured or unsecured loan, depending on the loan amount and eligibility. To qualify, you must be an Indian citizen, at least 18 years old, and have a minimum of 50% marks in your higher secondary education. 

What are the eligibility criteria for an education loan?

To be eligible for an education loan in India, you must be an Indian citizen between 16 and 35 with a strong academic record. You should have completed 10+2 (12th standard) or a diploma. Additionally, having a co-applicant with a stable income source is often required for unsecured loans. 

Which courses are eligible for an education loan?

Education loans are available for courses, including undergraduate and postgraduate programs and professional diploma and degree courses approved by UGC, AICTE, and IMC. Additionally, students enrolling in regular degree or diploma programs conducted by prestigious institutions like IITs, IIMs, and NITs are eligible.

How can I check my eligibility for an education loan?

To check your eligibility for an education loan, lenders evaluate factors such as income stability, age, confirmed admission to a recognised institution, and the availability of collateral or a guarantor (for secured loans). Ensuring a steady source of income and a strong academic record increases your chances of loan approval.

Can my education loan application be rejected?

Yes, an education loan application can be rejected for several reasons. A low credit score (below 700) for either the applicant or the co-applicant is one of the most common reasons for rejection. Other factors include unrecognised institutions, insufficient repayment capacity, and lack of proper documentation. To avoid rejection, ensure that all financial and academic requirements are met before applying.

What happens if I fail to repay my education loan?

Defaulting on an education loan can have serious consequences. If payments are overdue for more than 180 days, legal action can be taken under Section 138 of the Negotiable Instruments Act. Defaulting also negatively impacts your credit score, making it difficult to secure loans in the future. 

What is the punishment for not paying an education loan?

Failure to repay an education loan can result in losing access to deferment, forbearance, and flexible repayment options. Additionally, legal notices and penalties may be issued, and your credit history may be permanently affected. If the loan remains unpaid, lenders can take legal action, making it difficult for defaulters to secure financial aid or loans in the future.

Can diploma students pursue a degree after completion?

Yes, diploma holders can pursue a degree through lateral entry programs. These programs allow students who have completed a diploma in engineering or other technical fields to directly enter the second or third year of a bachelor’s degree course, improving their career prospects and expanding opportunities within the industry.

Is a four-year diploma equivalent to a degree?

No, a degree holds a higher academic value compared to a diploma. While diplomas focus on skill-based training and practical knowledge, a degree provides a more in-depth academic foundation, broader career opportunities, and better-earning potential.

How many years does a diploma course take after the 12th?

The duration of diploma courses varies based on the field of study. For instance, a diploma in computer engineering typically takes 2-3 years, while a diploma in nursing lasts for 3 years. Other diploma programs, such as physiotherapy and nutrition & dietetics, can take between 1 to 2 years to complete.

Which diploma courses offer the best career opportunities?

The best diploma courses depend on your career goals and industry demand. Some of the most sought-after diploma options include digital marketing, cyber security, data science, web development, mechanical and electrical engineering, nursing, business management, graphic design, and hotel management. These courses offer strong job prospects and are highly valued across various industries.