NBFC Education Loan in India
An education loan works differently from other loans for things like buying a house or personal expenses. The repayment process usually takes place after you finish your studies and get a job. Many aspiring students apply to get an education loan for domestic as well as international studies.
Major lenders in the education loan segment are banks and NBFCs. While both have their advantages and disadvantages, it's a major question to decide between opting for a bank or a non-banking financial company for your loan.
Let's talk about different factors related to loan options offered by NBFCs in India, thus giving you a better picture of which loan option is best. Ultimately, you can choose the right one for funding your foreign education.
What are NBFCs?
NBFCs (Non-Banking Financial Companies) in India are financial entities that provide financial and lending services to consumers, as an alternative to traditional banks.
NBFCs are different from banks primarily because traditional banks utilize demand deposits from consumers, to in turn, lend money to the borrowers. On the other hand, NBFCs use their funds raised from investors and other financial institutions to lend to the borrowers.
They often provide more flexible terms and conditions compared to traditional banks, making education loans more accessible to students from diverse financial backgrounds.
Top 10 NBFCs in India
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Top NBFCs in India and their Education Loans Interest Rate
Let’s see some of these most popular lenders and their terms and conditions in detail:
1. Propelld Education Loans:
Propelld is committed to providing convenient and accessible loans for Indian students pursuing higher education. With customized repayment options and flexible plans, Propelld's education loans cover tuition fees, living expenses, and other related costs, ensuring students can focus on their studies without worrying about financial constraints.
2. Avanse Education Loans:
Avanse Education Loans provide financial support for students pursuing higher education. With flexible repayment options and tailored plans, these loans help cover tuition fees, living expenses, and other educational costs, empowering students to achieve their academic and career aspirations without financial stress.
Loan Details:
3. HDFC Credila Education Loans:
HDFC Credila Education Loans offer customized financing solutions for students seeking to pursue higher education in India and abroad. With competitive interest rates, flexible repayment terms, and quick processing, these loans cater to various educational expenses, ensuring students can focus on their studies and future career goals without financial burdens.
4. Auxilo Education Loans:
Auxilo Education Loans provide comprehensive financial assistance to students pursuing higher education in India and overseas. With flexible loan amounts, competitive interest rates, and tailored repayment options, Auxilo aims to ease the financial burden on students, enabling them to focus on their academic goals and achieve their career aspirations.
5. InCred Education Loans:
InCred Education Loans offer financial solutions tailored for students pursuing higher education both in India and abroad. With quick approval processes, flexible repayment options, and competitive interest rates, InCred aims to empower students by covering tuition fees, living expenses, and other educational costs, ensuring they can focus on their studies and future success.
6. Eduvanz:
Eduvanz Education Loans offer convenient financing solutions for students pursuing higher education in India and overseas. With an easy application process, flexible repayment options, and attractive interest rates, Eduvanz is dedicated to helping students manage tuition fees, living expenses, and other educational costs, allowing them to focus on their studies and future goals.
Features of NBFC Education Loans
NBFCs offer education loans with specific features tailored to meet the financial needs of students pursuing higher education. Here are some of those key features:
1. Loan Amount and Coverage
NBFCs typically offer education loans covering tuition fees, exam fees, hostel charges, books, equipment, and other related expenses. The loan amount can vary based on the course pursued, institution reputation, and collateral provided, if required.
2. Repayment Terms
Repayment schedules for education loans from NBFCs are flexible, often allowing a grace period post-completion of the course before the repayment begins. This period is known as the “Moratorium Period”.
3. Collateral Requirements
Depending on the loan amount and policies of the NBFC, collateral may be required. This could include tangible assets like property, fixed deposits, or third-party guarantees.
4. Loan Processing and Disbursement
NBFCs streamline the loan application and approval process, typically requiring minimal documentation compared to traditional banks.
Hence, the disbursement of funds is much faster upon verification of eligibility requirements.
5. Additional Benefits
Some NBFCs may also offer additional benefits such as insurance coverage for the borrower or special schemes in collaboration with educational institutions or employers.
6. Eligibility Criteria
Eligibility criteria for education loans from NBFCs differs across lenders and includes factors like academic performance, course duration, employability prospects, and co-borrower/guarantor details.
NBFC Education Loan without Collateral
An education loan is money given by banks or NBFCs, to people who want to go to a college or university. This capital is meant to help pay for belongings like education charges, housing, books, and other academic expenses.
NBFCs, in most cases, offer education loans without requiring collateral, making them accessible to students who may not have substantial assets to pledge.
In such cases, these loans are granted based on the applicant's creditworthiness, academic record, and potential future earnings rather than requiring assets as collateral.
However, for an education loan without collateral, applicants need to meet specific eligibility criteria such as academic performance, course duration, and potentially having a co-borrower or guarantor with a stable financial background.
These loans cater to students seeking financial assistance for higher education without the burden of providing collateral, facilitating easier access to education financing in India.
To know more, explore collateral free education loans - check list of banks, eligibility, documents required, how to choose the right loan and get your application approved.
NBFC Education Loan Eligibility
While specific conditions may vary slightly between NBFCs, some general eligibility criteria for benefiting from an education loan from an NBFC include
12th Marks Based Approvals. No Collateral Required. Apply Now!
Also, check out the eligibility for education and student loans?
Documents Required for NBFC Education Loan
The documents required for NBFC education loan might differ across lenders and the kind of courses. However, the most common documents required are as follows:
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Types of Courses Covered by NBFC Education Loans
A. Traditional Degrees
B. Professional Courses
C. Skill Development and Vocational Courses
D. Study Abroad Programs
Factors to Consider While Taking NBFC Education Loans
1. Loan Amount:
The maximum amount of capital from NBFCs for education loans can vary a lot. It depends on:
- which NBFC you go to
- what course you want to study
- your personal details.
But usually, you can borrow anywhere from Rs. 4 lakhs to Rs. 40 lakhs. Sometimes, NBFCs may even offer higher amounts for specific cases.
2. Interest Rates:
The interest rates on education loans from NBFCs are usually higher. This is because NBFCs cover students who might not have a long credit history. The interest rates can be between 10% to 17% per year. These rates can change depending on things:
- your credit scores
- the course you're studying
- how much money you're borrowing
3. Repayment Terms:
Reimbursing the education loan usually takes around 5 to 10 years. Some NBFCs might give you a break from paying back the loan while you're still studying. This is called a moratorium period.
4. Collateral Requirement:
When applying for education loans, many borrowers worry about collateral requirements. However, with many NBFCs, including Propelld, you can access collateral-free education loans. This means you won’t need to pledge any assets, making it easier for students to secure funding without risking their valuable property.
5. Processing Fees:
Processing fees are an important aspect of education loans to consider. While some NBFCs may impose various fees, Propelld ensures transparency. We provide clear information regarding processing fees, so you understand all costs involved upfront without any hidden charges, making your loan experience straightforward and hassle-free.
6. Processing Time:
The speed of loan processing can be crucial for students eager to begin their studies. Propelld boasts a processing time that is 10 times faster than traditional banks. This quick turnaround allows you to secure your education loan swiftly and start your academic journey without unnecessary delays.
7. Expenses Coverage:
When it comes to financing your education, it's vital to consider what expenses your loan covers. Propelld offers comprehensive coverage for all educational expenses, including tuition fees, accommodation, books, and living costs. This ensures that you have the financial support necessary to focus on your studies without worrying about unexpected expenses.
Visit Propelld if you're thinking about getting an education loan. They present some of the best rates in the country. Also, they try to make the reimbursement easier. They have different repayment plans to fit what each student needs.
Why NBFCs like Propelld are a Better Option for Education Loan?
Click here for Higher Chances of Approval than Banks - Propelld Education Loan
What is Margin Money in Education Loan?
Margin money is the portion of educational expenses a borrower must pay from their own funds, with the rest covered by the loan. Typically ranging from 5% to 15%, it reflects the borrower's financial commitment and varies based on whether the education is pursued in India or abroad.
Margin Money in NBFCs
NBFCs often provide more flexible loans compared to banks. Many of them, like Propelld, do not even require margin money. They offer to cover 100% of the education expenses, making them appealing for students seeking full financial support.
NBFC Education Loan: Fulfilling Educational Dreams for Everyone
Education Loan for MBBS
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Read more about Education Loan for MBBS.
Education Loan for Btech
BTech students can find relief with education loans that help pay for their engineering degrees. These loans cover tuition, books, and other costs, making it easier for them to chase their dreams in technology.
Read more about Education Loan for Btech
Education Loan for MBA
An education loan for an MBA can lighten the financial load of business school. It helps with tuition and living costs, so students can concentrate on developing their skills and making valuable connections.
Read more about Education Loan for MBA
Education Loan for Working Professionals
Education loans for working professionals make it possible to learn new skills while still juggling a job. With flexible repayment options, these loans help individuals grow in their careers without added stress.
Read more about Education Loan for Working Professionals
Education Loan for Nursing
Nursing students can benefit from education loans that support the costs of their training. These loans cover tuition and supplies, helping passionate individuals pursue a fulfilling career in healthcare.
Education Loan for Pilot Training
Education loans for pilot training can be a lifesaver for aspiring pilots. They help cover the expenses of flight school and necessary certifications, making it easier for them to achieve their dream of flying.
Read more about Education Loan for Pilot Training
List of Banks Providing Education Loans in India
Learn about the education loan moratorium period, a time when payments are temporarily paused. Find out how it can help manage finances and what you need to know during this period.
Hassle Free Education Loans, Disbursed 10 Times Faster than Banks. Apply Now!
List of Non-Banking Finance Companies providing Education loans in India
If you are considering an educational loan, check Propelld today! It is an NBFC that offers the best rates in the market.
Propelld understands the difficulties students encounter in funding their education. We aim to offer repayment plans that fit each student's needs. So, contact us today if you are going to apply for an education loan, we'll help you out!
Why Propelld?
Benefits of Propelld Education Loan
