How to Choose the Right Education Loan


A webinar on “How To Choose the Right Education Loan” was conducted by Gyandhan on Friday, 10 May 2024.

Here are Some Key Takeaways:

  • Introduction to GyanDhan: GyanDhan is India’s premier education financing marketplace, aimed at equalizing and expanding access to education.
  • Role of GyanDhan: They provide end-to-end solutions, assisting students in finding the right education loans by evaluating their academic and financial profiles and connecting them with appropriate lenders.
  • Types of Education Loans: The webinar differentiated between secured and unsecured loans. Secured loans require collateral like property, while unsecured loans do not.
  • Loan Features and Terms: Discussed were interest rates (with secured loans generally offering lower rates), the impact of collateral on loan approval and terms, repayment periods, and the absence of a need for immediate repayment in certain secured loans.
  • Lender Options: GyanDhan has partnerships with over 13 lenders, including public sector banks, private banks, and NBFCs like SBI, ICICI, and HDFC.
  • Tax Benefits: Education loans offer tax benefits under Section 80E, where the interest paid is deductible from taxable income.
  • Additional Features: Some education loans come with insurance options to protect borrowers’ families from financial liabilities.

Are interest rates generally fixed or floating?

Most banks provide floating interest rates based on the RBI’s repo rate, which can fluctuate over time. However, some lenders like Empower offer fixed rates.

Can repayment of secured loans start after education completion?

Yes, secured loans often have a moratorium period during which no repayment is required until after education completion.