Education Loan for Working Professionals

Education Loan for Working Professionals

Upskilling is no longer an option; it's necessary in today’s fast-evolving job market. 74% percent of employees are open to acquiring new skills or retraining to ensure they stay employable.

However, juggling finances alongside education can be a significant hurdle for working professionals. This is where an education loan for working professionals comes into play. This article will help you explore the benefits, eligibility criteria, and best options available for an education loan for working professionals. 

Keep reading to learn more!

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Financial Institutes that Offer Educational Loan for Working Professionals 

Many financial institutions understand the unique needs of professionals seeking to upskill or acquire new qualifications while balancing work commitments. They offer education loans with flexible terms and repayment options.

Here are some of the top financial institutes that offer educational loans specifically designed for working professionals.

1. Banks

Banks are often the first go-to for many seeking an educational loan. In recent years, leading banks have introduced education loan schemes for working professionals. 

Interest rates typically range from 8.5% to 12%, and repayment periods can extend to 15 years, depending on the borrower’s profile.

2. Non-Banking Financial Companies (NBFCs)

NBFCs have emerged as a popular alternative to banks, particularly for working professionals who may not meet traditional banks' stringent eligibility criteria. Like Avanse and Credila, these institutions often offer more flexible loan structures with quicker approval. 

NBFCs tend to focus on specialised courses and are more lenient regarding collateral requirements, making them an attractive option for those looking for faster access to funds.

3. Financial Service Providers

Private financial service providers, such as Propelld, cater to a specific niche within the education loan market, offering tailored financial solutions to meet the needs of working professionals. 

Recent reports from 2024 suggest that financial service providers are increasingly becoming the preferred choice for professionals seeking fast and easy access to educational funding​.

4. Government Financial Institutions

Government-backed financial institutions are viable for professionals seeking education loans with subsidised interest rates. These loans are typically available for professionals who meet certain income thresholds and want to pursue higher education.

Also Read: MBA for Working Professionals: Elevate Your Career

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Education Loan Options for Working Professionals  

If you’re a working professional looking to advance your education, several lenders offer specialised education loans designed to meet your unique needs. These loans cater to individuals who wish to pursue part-time courses, professional certifications, or advanced degrees without taking a career break. 

Here’s a look at some top lenders that provide education loans for working professionals.

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Bank of India's Star Education Loan for Working Professionals

Bank of India (BOI) offers the STAR Education Loan, designed to support working professionals' educational aspirations to upgrade their skills or pursue higher education. 

The table below highlights the key features of the BOI Star Education Loan for Working Professionals.

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Bank of India's STAR Education Loan for Working Professionals: Eligibility Criteria 

The STAR Education Loan for Working Professionals offered by the Bank of India has specific eligibility criteria to ensure that applicants are suitable for the loan and can effectively utilise it for their educational growth. 

Here are the essential eligibility requirements.

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Bank of India's STAR Education Loan for Working Professionals: Documents Required

The following documents are typically required for the Bank of India's STAR Education Loan for professional courses, online courses, and other courses.

1. Application Form
2. Proof of Identity (Aadhar card, passport, or driver's licence)
3. Proof of Address (Utility bill, bank statement, or rental agreement showing current address).
4. Income Proof (Recent ITR/Salary Slips/Form16)
5. Bank statements of 1 year
6. Admission letter or offer letter from the recognised university or institution.
7. Class 10th and class 12th mark sheets and graduation degree mark sheets (if applicable)
8. Two Recent passport size photographs
9. Collateral Documents (if applicable)
10. VLP portal Reference Number
11. VLP portal Application Number

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Also Read: Bank Of India Education Loan: Interest Rate 2024 & How to Apply

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HDFC Credila Loan for Executive Management Courses for Working Executives  

HDFC Credila offers specialised education loans to support working professionals pursuing executive management courses. 

Here are the key features.

1. Purpose

Designed for working executives pursuing executive management courses, including part-time, executive, and distance learning programs from recognised institutions.

2. Loan Amount

Covers up to 100% of the course fees, including tuition, examination fees, and other related expenses.

3. Interest Rates

HDFC Credila offers competitively low interest rates, making it an appealing option for financing higher education. This affordability provides flexibility and encourages you to opt for an education loan over depleting your personal savings.

4. Convenient Door-Step Service

Recognising the busy schedules of working professionals, HDFC Credila provides doorstep service for loan applications. The representative will visit you to explain the details of the loan, assist with the application process, and collect your documents, ensuring a hassle-free experience.

5. Repayment Period

The repayment tenure is 12 years, allowing you to start repaying the loan after completing the course or as per the mutually agreed terms.

HDFC Credila Loan for Executive Management Courses for Working Executives: Eligibility Criteria

You must meet the following criteria to qualify for an HDFC Credila loan.

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HDFC Credila Loan for Executive Management Courses for Working Executives: Documents Required

The application process for an HDFC Credila education loan for working professionals requires comprehensive documents to verify your eligibility and support your loan request. 

Here’s a detailed list of the documents you'll need to provide.

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Axis Bank Education Loan for Working Professionals

Axis Bank offers education loans specifically designed to support working professionals seeking further education. Whether you’re looking to advance your career with an executive MBA, specialised certification, or any other management program, Axis Bank provides a range of financial products tailored to your needs.

Here are the key features of the Axis Bank Education Loan for Working Professionals.

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Read this blog for more details on Axis Bank education loans and the application process.

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ICICI Bank Education Loan for Working Professionals

ICICI Bank offers specialised education loans to support experienced professionals and working individuals who wish to further their education.

The table below highlights the key features of the ICICI Bank Education Loan for Working Professionals.

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Also Read: ICICI Education Loan: Interest Rate, Features, and Application Process

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Indian Bank Education Loan for Working Professionals

Indian Bank provides education loans specifically designed for working professionals who wish to advance their education through various part-time or executive programs. With competitive terms and flexible features, Indian Bank’s education loans cater to the unique needs of working individuals aiming for career growth through further education.

Here are the key features of the Indian Bank education loan for executive MBA.

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Also Read: Executive MBA in India: Eligibility, Admission, Fees & Top Colleges

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

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Education Loan for Working Professionals by Avanse

Avanse offers flexible financial solutions to help professionals achieve their educational and career goals without disrupting their work schedules. These loans cater to domestic and international programs, including part-time and executive courses. 

Here are the key features.

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Also Read: NBFC Education Loan - Top Best Loans in India (2024)

‍Education Loan for Working Professionals by Avanse: Eligibility Criteria

To ensure a smooth application process and effective loan management, Avanse has set specific eligibility criteria. Have a look at the table below.

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Education Loan for Working Professionals: Documents Required

Securing an education loan for working professionals involves more than just meeting eligibility criteria; it also requires a set of documents to verify your identity, financial status, and academic plans. 

Here’s a detailed overview of the critical documents you’ll need to provide for an education loan for working professionals.

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According to recent data, educational loans for working professionals have steadily risen, with many opting for specialised programs and executive courses to boost their career trajectories​. Whether you're looking to enrol in part-time classes, executive education, or specialised certifications, an education loan for working professionals can provide you the financial freedom to achieve your goals.

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Elevate your career without the financial strain! Propelld offers a seamless digital application process, quick approvals, and flexible repayment options to ensure you get the support you need to advance your education and career. 

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Why Propelld?

The main benefits of Propelld are as follows.

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Don’t let finances hold you back from reaching your full potential. Apply with Propelld today!

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FAQs About Education Loan for Working Professionals

What is an education loan for working professionals? 

An education loan for working professionals is designed to support individuals who want to pursue further education while continuing to work. These loans can be used for education loans for professional courses, such as executive MBA, part-time courses, or specialised certifications.

How can I apply for an education loan for working professionals? 

You can apply through various financial institutions, such as banks, NBFCs, or private lenders. The application process typically involves submitting required documents, including proof of income, employment, and admission to a recognised course, such as an education loan for online courses.

What are the benefits of an education loan for working professionals? 

An education loan for working professionals offers several benefits, including flexible repayment options, competitive interest rates, and tax benefits. These loans can help you pursue an executive MBA or other professional courses without disrupting your work schedule.

What are the eligibility criteria for an education loan for working professionals? 

Eligibility criteria for an education loan for working professionals typically include age, income, employment, and admission to a recognised course. You must also have a good credit score and meet the lender's requirements.

What documents are required for an education loan for working professionals? 

The required documents for an education loan for working professionals typically include proof of income, employment, admission to a recognised course, and identity proof. You may also need to provide collateral or a co-applicant.

How much can I borrow through an education loan for working professionals? 

The loan amount varies depending on the lender and your eligibility. Depending on the lender's terms and conditions, you can borrow up to INR 20 lakhs or more.

What is the interest rate for an education loan for working professionals? 

The interest rate for an education loan for working professionals varies depending on the lender and your eligibility. You can expect to pay an interest rate ranging from 8.5% to 14% annually.

What is the repayment tenure for an education loan for working professionals? 

The tenure typically ranges from 5 to 15 years, depending on the lender and your eligibility.

Can I get an education loan for working professionals without collateral? 

Yes, some lenders offer education loans for working professionals without collateral. However, you may need to provide a co-applicant or meet other eligibility criteria.

How can I repay an education loan for working professionals? 

You can repay an education loan for working professionals through EMIs, which can be deducted from your salary or bank account. You can also make prepayments or foreclose the loan.

What are the tax benefits of an education loan for online courses? 

An education loan for working professionals for online courses offers tax benefits under Section 80E of the Income Tax Act. You can claim a deduction on the interest paid on the loan.

Can I get an education loan for working professionals for international courses? 

Yes, some lenders offer education loans for working professionals for international courses. However, you may need to meet additional eligibility criteria and provide collateral.

How can I choose the best education loan for working professionals? 

You can choose the best education loan for working professionals by comparing the interest rates, loan amounts, repayment tenures, and eligibility criteria of different lenders.

What is the processing fee for an education loan for working professionals? 

The processing fee for an education loan for working professionals varies depending on the lender. It can range from 1% to 2% of the loan amount.

How can I use an education loan for working professionals to enhance my career prospects? 

An education loan for working professionals can be used to enhance your career prospects by pursuing an education loan for professional courses, an education loan for online courses, or an education loan for executive MBA.