Ask Experts - Any Question on Education Loan (FREE)

This forum is to help India understand their education loan better with expert advice.

  • Confused which bank is good for education loan?
  • Confused whether to get education loan at all or not?
  • Confused whether collateral and co-applicant is important?

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How can I get a loan for an MBA
Asked By
Himanshu Kumar ojha

You can get a loan for an MBA by following these steps:

  1. Assess Eligibility:
    • Indian citizens aged 18–35 are generally eligible.
    • Admission to a recognized MBA program in India or abroad is required.
    • A co-applicant (parent/guardian) with stable income is usually needed.
  2. Choose a Lender:
    • Banks: Offer education loans under schemes like SBI Global Ed-Vantage, HDFC Bank Education Loan, etc.
    • NBFCs/Fintechs: Propelld, Avanse, and Credila provide flexible options, especially for higher loan amounts or non-collateral loans.
  3. Prepare Documents:
    • Admission letter, fee structure, academic records, income proof of co-applicant, KYC documents, and collateral details (if applicable).
  4. Apply:
    • Online: Fill the form on the lender’s website and upload documents.
    • Offline: Visit the nearest branch and submit the application physically.
  5. Loan Disbursement:
    • After verification and approval, the sanctioned amount is disbursed directly to the institution in instalments.

For reference, Education Loans for MBA typically cover tuition, living expenses, exam fees, and travel (for abroad programs), with repayment starting after course completion plus a moratorium of 6–12 months.

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Cancel my loan approval
Asked By
Ameer sohail

You can cancel your loan approval before the disbursement stage by following these steps:

  1. Contact Your Lender Immediately:
    • Inform your loan officer or customer service team in writing (email or letter) that you wish to cancel the approved loan.
  2. Submit a Loan Cancellation Request:
    • Mention your application number, sanction letter reference, and reason for cancellation.
    • Some lenders may require a signed cancellation form.
  3. Check for Processing Charges:
    • If the loan agreement was already signed or disbursement initiated, lenders may deduct minimal processing or administrative fees.
  4. Obtain Written Confirmation:
    • Always ask for written confirmation of cancellation to avoid future liability or CIBIL reporting issues.

Note: Once the loan amount is disbursed, you cannot cancel it — instead, you must prepay or foreclose it as per the lender’s repayment terms.

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If I take admission in MS Obstetrics and Gynaecology in a private medical college, can I get an education loan of around 40 lakhs?
Asked By
Umme Rooman

Yes, you can apply for an education loan to pursue MS in Obstetrics and Gynaecology in a private medical college. Indian banks offer loans for postgraduate medical courses, and the loan amount can go up to 40 lakhs or more, depending on the institution. For higher amounts, collateral will likely be required. You will need to submit proof of admission, a fee structure, and co-applicant financial documents. Compare banks to find the best interest rates and repayment terms. Some banks may also offer moratorium periods during which you don’t have to make repayments.

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I received an education loan for my BE in Canada, but I failed one subject in my 4th semester. Will this affect my loan disbursement for the next semester? Is there a policy about not giving loans to students who fail?
Asked By
Yashaswini NM

In most cases, failing a subject will not stop loan disbursement, but it depends on the bank's policy. Some banks require students to maintain a minimum academic performance, while others may continue to disburse the loan if you are still enrolled in the course. You should inform the bank and explain your situation. If you can demonstrate that you are progressing in your course, the bank is likely to disburse the loan for the next semester. Be sure to check the specific terms of your loan agreement.

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Most Asked Questions and Answers

These are the most frequently asked questions and answers.
How can i get a no collateral education loan?
Asked By
Shubham

A no-collateral education loan allows students to borrow without pledging property or assets. Approval depends on the borrower’s academic merit, institution reputation, and co-applicant’s financial profile.

Most public sector banks in India, like SBI and Bank of Baroda, offer up to ₹7.5 lakh under the IBA Model Education Loan Scheme without collateral. For higher amounts, private banks and NBFCs assess profiles individually and may extend unsecured loans up to ₹40 lakh or more.

You’ll need confirmed admission to a recognized institution, KYC and income documents, and a financially stable co-applicant. Fintech lenders such as Propelld also provide flexible no-collateral loans based on course quality and repayment capability.

In summary, a strong academic record, good co-applicant credit, and admission to an approved institution significantly improve your chances of getting a no-collateral education loan.

Cancel my loan approval
Asked By
Ameer sohail

You can cancel your loan approval before the disbursement stage by following these steps:

  1. Contact Your Lender Immediately:
    • Inform your loan officer or customer service team in writing (email or letter) that you wish to cancel the approved loan.
  2. Submit a Loan Cancellation Request:
    • Mention your application number, sanction letter reference, and reason for cancellation.
    • Some lenders may require a signed cancellation form.
  3. Check for Processing Charges:
    • If the loan agreement was already signed or disbursement initiated, lenders may deduct minimal processing or administrative fees.
  4. Obtain Written Confirmation:
    • Always ask for written confirmation of cancellation to avoid future liability or CIBIL reporting issues.

Note: Once the loan amount is disbursed, you cannot cancel it — instead, you must prepay or foreclose it as per the lender’s repayment terms.

Sir meri family income under 5 Lakh h mujhe sure scholarship mil sakata h 2 semester se 8 semester tak aur scholarship milane ke bad mujhe kitana tution fee aur dena hoga
Asked By
Smriti patel

Yes, students with a family income below ₹5 lakh are generally eligible for government and institutional scholarships such as the Central Sector, Post-Matric, or state merit-cum-means schemes. These can cover 50%–100% of tuition fees depending on merit and category. If awarded a full scholarship, you’ll only pay non-tuition charges like hostel or exam fees. For partial coverage, the remaining tuition can be managed personally or through an education loan from a bank or NBFC such as Propelld.

Loan eligiblety
Asked By
Suvarchala

Education loan eligibility in India is based on the applicant’s academic profile, chosen course, and co-applicant’s financial stability.

General Eligibility:

Citizenship: The applicant must be an Indian citizen.

Admission: Confirmed admission to a recognized course in India or abroad through merit or entrance exam.

Academics: Consistent academic record meeting the institution’s requirements.

Co-applicant: A parent, guardian, or relative with steady income and good credit history.

Loan Amount:

Up to ₹7.5 lakh – usually collateral-free.

Above ₹7.5 lakh – may require collateral or a guarantor.

Courses Covered: Professional, technical, and management programs such as engineering, medicine, dentistry, and business studies.

Fintech lenders like Propelld also provide flexible, collateral-free education loans for recognized programs based on student and co-applicant profiles.