Higher education can open the door to better opportunities. However, the cost of tuition and living expenses is rising much faster than most families can afford, increasing by about 8–10% every year in India. For many students, this makes higher education feel out of reach.
Education loans can help cover these costs, but getting one isn’t always easy. Long wait times, heavy paperwork, and confusing requirements often slow students down when they need money the most.
Read this guide to understand how to get education loan easily. Learn the steps to apply, tips to get quick approval, the documents you’ll need, and the easiest loan options available today.
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Understanding Education Loans and Expenses Covered
Education loans are designed to cover almost all major academic expenses, not just tuition. Most lenders include tuition fees, living costs, books and study material, exam and library fees, laptops, travel for overseas students, and even insurance.
Some NBFCs and digital lenders also allow additional costs like visa charges or entrance exam fees under the loan.
Banks and NBFCs generally offer a moratorium period, a break during which you start repaying only 6–12 months after completing your course or securing a job. However, approval depends on your eligibility, the co-borrower's profile, and the required documentation. Knowing these requirements upfront makes the process much smoother.
Get an Education Loan 10X Faster than Banks.
How to Get Education Loan Easily Step by Step
Getting an education loan quickly requires planning and the right approach.
Step 1: Check Your Eligibility First
Lenders approve education loans only if you meet certain conditions. Here’s what they usually look for:
- Indian Citizenship: Most lenders require the student to be an Indian citizen.
- Confirmed Admission: You must have an admission letter from a recognised university (India or abroad).
- Course Type: Job-oriented or professional courses are preferred.
- Co-borrower Requirement: Usually, a parent or guardian with a stable income acts as a co-borrower.
- Creditworthiness: Co-borrower’s credit score (CIBIL score above 700) is important for approval.
Step 2: Choose the Right Lender
There are three main types of lenders for education loans:
1. Public Sector Banks (PSBs)
- Pros: Lower interest rates (8%–10%), subsidy schemes available.
- Cons: Long processing time (2–4 weeks), mandatory collateral for loans above ₹7.5 lakh.
2. Private Banks
- Pros: Faster processing, flexible repayment.
- Cons: Higher rates (10%–14%), collateral for high amounts.
3. NBFCs & FinTech Platforms (like Propelld)
- Pros: Quick approvals (24–72 hours), collateral-free loans for reputed institutes, and flexible repayment options.
- Cons: Loan terms can vary depending on the student's profile.
Step 3: Decide Between Secured & Unsecured Loans
1. Secured Loans
- Collateral required (property, FD, etc.).
- Lower interest rates (as low as 8%).
- Higher chances of approval for big loan amounts.
2. Unsecured Loans
- No collateral needed.
- Higher interest rates (10%–16%).
- Mostly offered for reputed courses and universities.
Want to know which is better for you? Read Secured vs Unsecured Education Loans.
Get an Education Loan with Higher Chances of Approval
Step 4: Prepare All Required Documents
Document readiness is key to fast approval. Typically required documents include:
1. Student Documents
- An admission letter from the university.
- Previous academic transcripts (10th, 12th, graduation).
- Identity proof (Aadhaar, passport).
2. Co-borrower Documents
- Income proof (salary slips, ITR, Form 16).
- Bank statements (last 6 months).
- ID and address proof.
3. Collateral Documents (if applicable)
- Property papers.
- Valuation reports.
Submitting all documents in one go reduces back-and-forth and speeds up approval.
Step 5: Apply Online for Faster Approval
Traditional banks often require branch visits and multiple signatures. Instead, apply online through FinTech platforms like Propelld, where:
- Eligibility is checked instantly.
- Document upload is digital.
- Approval can happen in 24–48 hours.
Step 6: Explore Collateral-Free Loan Options
Not every student has property to pledge. If that’s your case, look for NBFCs and FinTech lenders that offer education loans without collateral for certain courses and institutes.
Learn how you can get an education loan without collateral.
Tips to Get Quick Loan Approval
If you want quicker education loan approvals, follow the tips below:
1. Apply at Least 4–6 Weeks Before your Course or Visa Process
Starting early is crucial because lenders need time to verify your documents, assess your credit profile, and approve the loan. For overseas education, you also need the sanction letter for your visa application, which means any delay in loan approval can affect your travel plans. Early application gives you room to compare lenders and negotiate better terms instead of accepting the first offer under pressure.
2. Maintain a Good CIBIL score (700+) for your Co-Borrower
Lenders prioritise repayment ability, and since most student borrowers have no income, the co-borrower’s credit score becomes critical. A score of 700 or above increases your chances of approval and may help secure a lower interest rate. If the co-borrower’s score is below 700, consider paying off small debts or correcting errors in the credit report before applying.
3. Submit Complete Documentation at Once
Most delays happen because of missing or incorrect documents. Always have these ready:
- Admission letter from the university
- Cost estimate from the institution
- Student KYC (ID and address proof)
- Co-borrower KYC and income proof (salary slips, IT returns, bank statements)
- Collateral documents (if applicable)
Submitting all documents in one go prevents repeated follow-ups and speeds up verification.
4. Prefer Digital Lenders for Faster Approvals
Traditional banks often take 2–4 weeks due to manual processing and physical paperwork. Digital-first lenders like Propelld or NBFCs can process applications within 24–72 hours because they use online verification and e-signature facilities. This is particularly useful for students who are close to their course start date or visa deadline.
5. Avoid Multiple Simultaneous Applications
Applying to several lenders at the same time can negatively impact your credit profile, as each application triggers a hard inquiry on the co-borrower’s CIBIL report. Multiple inquiries within a short period signal high credit risk and may lead to rejections or higher interest rates. Instead, compare lenders first, check eligibility online, and apply to one or two lenders that match your profile.
Common Pitfalls to Avoid while Getting an Education Loan
Students often face delays because they:
- Apply without checking lender-specific eligibility rules.
- Miss hidden charges like processing fees or late penalties.
- Wait until the last minute, delaying their visa process.
- Submit incomplete or incorrect documents.
Avoiding these mistakes will make your loan journey stress-free.
Can You Get an Education Loan Without a Co-Applicant or Collateral?
Reddit User in r/personalfinanceindia shared:
“I’m 28, working in fintech (₹10 LPA) with 5.5 years’ experience. Planning a master’s in France, but I have no co-applicant or collateral. Need ₹5–20 lakh. Most lenders demand one of the two, what are my options?”
Insight:
Banks usually require a co-borrower or collateral. But some NBFCs/fintech lenders may consider applicants with strong work profiles and savings for unsecured loans.
What Do We Infer?
- Traditional banks: low rates but strict on collateral/co-borrower.
- Fintech/NBFCs: flexible, faster, but higher interest.
Tip:
If you lack a co-borrower or collateral, explore fintech lenders like Propelld that focus on your career potential and institute reputation. Apply early to compare terms.
Which Lender Should You Choose?
Here’s a quick comparison of major options:
Confused about co-borrowers and co-signers? Read Co-Borrower vs Co-Signer Education Loan.
Arranging funds for higher education can feel overwhelming with endless paperwork, collateral requirements, and long approval timelines that often delay your plans. Missing deadlines for admission or visas because of financial hurdles is the last thing you want when you’ve worked hard to secure a seat at your dream university.
Propelld solves these challenges by making education loans simple, fast, and flexible:
- Quick approvals: loans sanctioned in as little as 24 hours, so you never miss deadlines.
- Collateral-free loans: no need to pledge assets for most institutes and courses.
- Flexible repayment: including income-linked EMIs that adjust to your future earnings.
- Partnerships with 550+ top institutes: ensuring a smooth, hassle-free process.
Don’t let finances hold you back from your dreams. Apply now with Propelld and secure your education without stress. Start Your Ap7plication with Propelld today!
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