Choosing the right education loan is one of the most important financial decisions for any student; it influences not just your studies but your long-term financial comfort. With India’s student loan market expanding rapidly, many are now exploring flexible options beyond traditional banks. FinTech lenders like Propelld are emerging as strong alternatives to established players such as Axis Bank. This blog offers a clear Propelld vs Axis Bank Education Loan Comparison, outlining key differences in interest rates, repayment flexibility, and processing to help you make the best choice for 2025.
Looking for quick approval and 100% collateral-free financing? Apply with Propelld now!
Propelld vs Axis Bank: Comparison
Planning to study overseas but worried about finances? Don’t miss our detailed guide on how to get an education loan for abroad studies in 2024.
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Propelld vs Axis Bank Student Loan
Now that you have seen the quick snapshot, this section will delve into the most crucial aspects of an education loan: the details of funding limits, costs, collateral requirements, and the speed of the process.
This section provides a head-to-head analysis of how Propelld and Axis Bank compare on the most important terms that impact a student's educational journey.
Axis Bank vs Propelld Loan for Higher Studies
The maximum funding available is a key factor in any Axis Bank vs Propelld study abroad loan decision. Propelld offers a substantial maximum of ₹1 Crore for abroad studies and up to ₹40 Lakhs for domestic higher education, critically with no collateral requirement. Their coverage is also broad, extending to tuition, living expenses, travel, insurance, and even upskilling/coaching programmes, offering complete financing.
Axis Bank offers a diverse range of loans, including secured loans that can go up to ₹1.5 Crore or more, and an unsecured loan limit that can reach ₹75 Lakhs for select premier courses abroad. While the secured loan amounts are higher, they require pledging assets.
The crucial difference is Propelld's high, collateral-free limit across a wider range of courses and institutions, especially for those who lack tangible assets.
How much education loan can a student get for MBBS/Abroad with Propelld vs Axis Bank?"
1. Propelld offers up to ₹40 Lakhs for domestic higher studies (including MBBS) and up to ₹1 Crore for study abroad programmes, all collateral-free.
2. Axis Bank offers secured loans that can cover the full cost of high-value courses like MBBS, potentially exceeding ₹1 Crore with collateral. Without collateral, the limit is typically capped at a lower amount, varying based on the course's ranking and category.
Interest Rates & Transparency
Propelld vs Axis Bank education loan interest rate comparison reveals a fundamental difference in how rates are calculated.
1. Axis Bank, as a traditional bank, offers loans linked to the Repo Rate or MCLR (Marginal Cost of Lending Rate), with rates often starting lower (around 10.71% p.a.) for secured loans or government-subsidised schemes.
However, unsecured loans from Axis Bank tend to have higher interest rates. Axis Bank’s loans use the reducing balance method.
2. Propelld, an NBFC, offers profile-based interest rates starting from 12% p.a., which can be higher than a bank's secured rate but are often competitive with, or lower than, a bank's unsecured student loan rates.
Propelld stands out for its transparency, openly publishing the APR (Annual Percentage Rate), which is the all-inclusive cost of the loan per year, factoring in fees. This full disclosure ensures no hidden charges surprise the borrower later.
Sample EMI Calculation (Illustrative, 10,00,000 loan for 10 years after moratorium):
Propelld is committed to open APR disclosure and has no hidden charges, ensuring you know the true cost of your loan upfront.
Collateral & Margin Money Rules
This is perhaps the biggest differentiator for Propelld.
1. Propelld operates on a collateral-free model, meaning you don't need to pledge any property, FD, or assets up to a loan amount of ₹1 Crore for study abroad. Crucially, they also require 0% margin money, financing up to 100% of the course cost, which significantly reduces the upfront financial burden on the student and their family.
2. Axis Bank typically requires collateral for loan amounts exceeding ₹40-75 Lakhs (depending on the course and category). Furthermore, for loans above ₹4 Lakhs, the bank often requires margin money (typically 5% for domestic and 15% for abroad), meaning the family must fund a portion of the total cost upfront.
For students seeking financial support without pledging assets, you can explore options to get an education loan without collateral and secure funds quickly.
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Approval Process & Timelines
Speed and certainty are vital when juggling application and visa deadlines.
1. Propelld follows a digital-first, paperless application process, which is inherently much faster. They boast a quick sanction time of 48–72 hours for domestic loans and an approval timeline of 7 working days for abroad loans.
Propelld approves 9/10 applications with a flexible underwriting approach that rewards good academics over just collateral. If there's a rejection or gap in the application, the student is informed within 24 hours, preventing a long and anxious wait.
2. Axis Bank, following traditional banking protocols, has an average disbursal time of 7–15 working days or more after all documents (including collateral valuation, if applicable) are submitted.
Repayment Flexibility
Both lenders offer a moratorium period, but their options vary.
1. Propelld provides a flexible moratorium during the study period plus a grace period, especially for long courses like MBBS. They offer options like paying simple interest or a partial interest payment during the moratorium for abroad loans, helping students manage their initial costs.
Propelld also clearly mentions its foreclosure charges (2-4%), which are typically waived off in special cases like medical emergencies or financial hardship, as per the loan agreement.
2. Axis Bank offers a moratorium (course period + 6-12 months grace period) and has a major advantage of having No Foreclosure Charges on its floating rate education loans, which is highly beneficial for early repayment.
Support & Experience
The overall customer experience is crucial in a long-term financial commitment.
1. Propelld offers a digital-first experience with a dedicated SPOC (Single Point of Contact) for better, personalised guidance. Applicants receive a dashboard for complete digital tracking and process visibility. As an RBI-registered NBFC specialising only in education loans, their entire operation is geared towards making the student’s financial journey smoother.
2. Axis Bank offers the reliability of a large private bank with a vast branch network, which some applicants prefer for in-person support. However, bank processes can sometimes be slow and less specialised in education financing nuances.
Axis Bank vs Propelld Education Loan Eligibility
The criteria for loan approval often differ significantly between an NBFC specialised in education and a traditional bank. This distinction is key for students and co-applicants.
1. Propelld follows a fair approval process and does not discriminate based on college, course, or stream. The eligibility and interest rate depend heavily on the kind of course, college, and the student's academic performance, thus rewarding good academics.
This allows financing for a wide array of recognised institutions in India and abroad, and even includes upskilling/coaching courses.
2. Axis Bank has stricter eligibility criteria, particularly for unsecured loans. Unsecured loan eligibility often requires a high academic percentage (e.g., 60% in past grades), specific admission to a course on the bank's approved list, and a strong focus on the co-applicant’s credit score (e.g., above 600-700) and stable income (e.g., monthly income above ₹35,000).
For minors, the parent/guardian is the primary debtor.
Who Should Choose Propelld vs Axis Bank?
The choice ultimately depends on your profile and priorities.
Propelld is an excellent choice for the majority of students who prioritise speed, flexibility, and collateral-free funding. Axis Bank is better suited for those with strong collateral and who can secure a lower interest rate through a secured loan.
For a modern student, the value of speed, flexibility, and transparency in financing cannot be overstated. While Axis Bank provides the stability of a large bank and attractive rates for secured loans, Propelld is uniquely designed for the needs of today's student population.
Here’s why Propelld often offers better value:
1. Flexibility: ₹1 Crore Collateral-Free Loans and 0% Margin Money.
2. Speed: Approval in days, not weeks, preventing visa/admission delays.
3. Transparency: Open APR disclosure ensures no hidden charges.
4. High Approval: Rewarding strong academic profiles even if collateral is absent.
Ready to start your education journey with a fast, flexible, and fully digital loan? Apply with Propelld today!
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