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Funding higher education is more than just borrowing money; it’s about finding a loan that fits your plans and lifestyle. Propelld and Tata Capital both offer unique advantages, from fast approvals to flexible repayment options. Choosing the right one can save time, reduce stress, and give you more control over your finances.
This blog dives into the key differences between the two lenders, helping students understand which option aligns better with their study goals and long-term financial comfort. Looking for quick approval and 100% collateral-free financing? Apply with Propelld now!
Quick Snapshot: Propelld vs Tata Capital
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.
Get an Education Loan 10X Faster than Banks.
Propelld vs Tata Capital Education Loan Comparison
Let’s dive deeper into the key parameters to help you determine which lender’s policies align better with your educational aspirations and financial situation.
Loan Amount & Coverage
The primary keyword in the Propelld vs Tata Capital education loan comparison is defined by how much each lender is willing to cover.
1. Propelld: Offers a clear structure: up to ₹40 lakhs for domestic courses and up to ₹1 Crore for studying abroad. Propelld stands out by covering a wider spectrum, including tuition, living expenses, travel, and even unique financing for Coaching and Upskilling courses.
2. Tata Capital: Provides higher financial ceilings for students with assets. They offer loans up to ₹2 Crore for secured loans and up to ₹85 Lakhs for unsecured loans, primarily targeting abroad education.
Interest Rates & Transparency
Comparing Propelld vs Tata Capital interest rates reveals different approaches to pricing.
Both lenders primarily offer floating interest rates, but their starting points differ, and the final rate depends heavily on the applicant's profile, college, and course.
Propelld is explicit about using the Annual Percentage Rate (APR), which represents the all-inclusive annual cost of the loan (interest + processing fees), ensuring no hidden charges. Tata Capital also provides clear disclosure on its PLR structure and associated charges.
Collateral & Margin Money Rules
The need for collateral is one of the most significant points in the Propelld vs Tata Capital no collateral schemes debate.
1. Propelld: Championing student empowerment, Propelld offers completely collateral-free education loans up to ₹1 Crore for studies abroad and ₹40 Lakhs for domestic courses. Crucially, they require 0% margin money, funding 100% of the educational expenses.
2. Tata Capital: They offer unsecured loans up to ₹85 Lakhs. For loans exceeding this amount or for students looking for the lowest possible interest rates, collateral (property, FD, etc.) is mandatory. Their margin money is 0% for premier institutions, but for others, it can be up to 15% of the total cost.
For students seeking financial support without pledging assets, you can explore options to get an education loan without collateral and secure funds quickly.
Minimal Docs, Maximum Approval - Apply Now!
Approval Process & Timelines
Speed and flexibility are critical when admission deadlines are looming.
1. Propelld: Known for its digital-first, paperless approach. The platform approves 9 out of 10 applications with flexible underwriting, focusing on the student's academic potential. Sanction is typically done in 48–72 hours for domestic loans and approximately 7 working days for abroad loans.
Propelld is fast to inform customers about any application gaps or rejections (within 24 hours), avoiding long waits.
2. Tata Capital: Being a large NBFC, the process is streamlined but may take longer, especially if collateral valuation is required. The approval process averages 7-15 days, depending on document verification, particularly for high-value secured loans.
Repayment Flexibility & Loan Tenure
Understanding Propelld vs Tata Capital loan tenure and repayment options is key to post-study financial comfort.
1. Tata Capital: Offers an extensive loan tenure of up to 13 years after course completion. They provide a moratorium period (course period + 6-12 months) and have a clear policy of NIL foreclosure charges on all education loans, which is a major benefit for early repayment.
2. Propelld: Also provides flexible moratorium options, including paying only partial simple interest during the study period, especially for long courses like MBBS. While a foreclosure fee (typically 2–4%) applies, it may be exempted in genuine hardship situations, such as sudden family emergencies or financial crises.
Eligibility Criteria & Customer Feedback
The Propelld vs Tata Capital eligibility criteria differ in their core underwriting philosophy.
1. Propelld: Follows an academic and course-based underwriting model. The profile of the student and the course/college quality are the prime determinants, often making it easier for students with excellent academics but less financially strong co-applicants to secure a loan.
2. Tata Capital: Follows a traditional NBFC model, relying heavily on the co-applicant’s income proof and the availability of collateral for high-value loans. This is ideal for students whose parents have a strong financial history.
Who Should Choose Propelld vs Tata Capital?
The final choice depends entirely on your specific circumstances:
The choice between the two fundamentally hinges on collateral: Tata Capital offers the highest limits for those with assets, while Propelld provides a faster, fully digital, and asset-free path, empowering a wider range of students. For most applicants prioritising speed, Propelld offers a superior, hassle-free lending experience with 0% margin money and up to ₹1 Crore collateral-free.
Ready to secure your education with an asset-free, transparent loan? Apply with Propelld today!
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