FAQs for How to Get Education Loan Easily
What is the minimum interest rate on education loans in India?
Interest rates generally range from about 9% to 16%, depending on lender type, collateral presence, and borrower profile.
Can I get an education loan without collateral?
Yes, many private lenders and fintech platforms like Propelld offer collateral-free loans for reputed courses and institutes.
How quickly can I get my education loan approved?
While traditional banks may take 2–4 weeks, digital lenders and NBFCs can approve loans within 24 to 72 hours.
What expenses do education loans cover?
Education loans typically cover tuition fees, living expenses, books, laptops, travel expenses, and examination fees, among others.
Do lenders cover 100% of the education cost?
Many lenders finance up to 100% of tuition fees and a significant portion of other related expenses, subject to eligibility.
Who can be a co-borrower for my education loan?
Co-borrowers can be parents, guardians, siblings, spouse, or close relatives who have a stable income and good credit history.
Can I apply for a loan without a co-borrower?
For some postgraduate courses or through fintech lenders, applicants with sufficient work experience may apply without a traditional co-borrower.
What documents are required for smooth loan approval?
Common documents include admission letter, academic transcripts, identity proof, income proof of co-borrower, bank statements, and collateral papers if applicable.
Is applying online better than offline for faster approval?
Yes, online applications through fintech or bank portals usually speed up the eligibility check, document submission, and approval process.
Can I prepay or foreclose my education loan?
Most lenders allow prepayment without additional charges, enabling you to save on interest costs.
How important is the co-borrower’s credit score for loan approval?
A CIBIL score above 700 for the co-borrower greatly improves chances of approval and helps secure better interest rates.
What common mistakes should I avoid when applying for an education loan?
Avoid missing documents, late applications, applying to multiple lenders simultaneously, and not understanding loan terms fully.
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