Education Loan for Working Professionals

 

Upskilling is key to professional growth in today's dynamic world. For working professionals seeking part-time, distance, or full-time courses, education loans provide crucial financial support without draining savings.

Working professionals hold several advantages in the eyes of lenders:

• Enhanced earning potential: Their expertise and experience make them more likely to receive salary increments and promotions.
• Assured income source: Stable employment improves their creditworthiness, though some lenders may require interest deposits before loan disbursement.
• Lower risk of loan default: With an established credit history, their chances of loan approval are higher.

Do lenders in India provide education loans for working professionals?

Yes, a few Indian banks, such as, Axis Bank, ICICI Bank, and Indian Bank offer education loans for working professionals. NBFCs like Avanse too offer education loans for working professionals. 

The following are some of the advantages lenders see in a working professional: 

• Better earning potential: Since working professionals have relevant experience and expertise in the field, the chances are more for salary increments and promotions.
• Assured income source: Working professionals have a stable source of income, and that benefits their creditworthiness compared to unemployed applicants. However, some lenders demand that applicants deposit the interest amount prior to loan disbursement. 
• Lower risk of loan default: Applicants with a job or work experience pose a lesser risk of loan default as they have an established credit history. When the creditworthiness and financial history are convenient, the applicant has more chances of getting a loan application accepted.

Let’s see the details of education loan offered by different lenders to working professionals. 

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Education loan options For working professionals

In India, many banks in the public and private sectors offer education loans to working professionals, and some of them are listed below: 

• Axis Bank
• ICICI Bank
• Indian Bank

Apart from these banks, you can apply for education loans offered by any banks with the added advantage of work experience to your profile.

Let’s see the details of education loan schemes by banks listed above for working professionals: 

Axis Bank education loan for working professionals

Axis bank offers education loans for applicants with prior work experience to study in India and abroad at an interest rate of 13.70%. The details of education loans by Axis bank for working professionals are given below: 

• Unsecured Loan up to INR 40 Lakhs
• No requirement of a co-applicant
• Loan repayment tenure will be up to 10 years

ICICI Bank education loan for experienced professionals

ICICI bank’s work experience based education loan is beneficial for applicants who secure admission to a university or college listed by the bank for degree or diploma courses. At the time of application the applicant must have a minimum of 3 years work experience. 

• Collateral free education loans up to INR 1 Cr is possible if the admission is to a premium institute in ICICI list.
• The interest rate is 11.78% per annum
• Repayment tenure is 8 - 12 years + 6 months, including course years
• Applicants need to pay a fixed deposit of the amount equivalent to the interest to be paid in the moratorium period

Indian Bank education loan for working professionals

Indian Bank offers education loans to experienced professionals who want to study management courses like MBA. Eligible applicants must have secured admission to an institution in the Premium or Prime categories of the Indian Bank. 

• Minimum 3 years of work experience is required
• Interest rate for abroad education loans is 15% - 20%

Avanse Executive Education Loans

Avanse is an NBFC offering education loans for working professionals. However, you can apply for an education loan from other NBFCs since you have the relevant work experience in your field of study. Avanse executive education loans help eligible applicants with 100% funding for academic and living costs. Avanse loans are flexible for the customer and cover 50+ countries and 27,000 courses.

• Applicants of an MBA or a postgraduate diploma course are eligible
• Current interest rate is 14.25% (w.e.f. 01.05.2023)

Documents required for education loans from working professionals

Submitting proper documents is crucial to prove your work experience and permanent employee status in a central or state government institution or reputed MNC, public sector, or private sector company. Apart from the basic documents required for an education loan, the documents you must submit include the following: 

• Form 16 or ITR and 3 month salary slip, showing work experience of the last 2 - 3 years (minimum required years of work experience)
• Proof of permanent employee status
• Letter of consent from the employer
• Admission letter to the program of study. Generally, education loans for working professionals are provided for part-time or distance learning programs
• Bank statement of your fixed deposit

There can be case-specific additions or deletions in the list of documents required. Once you submit the documents, it won’t take much time to process your application. Keep in touch with the lender for timely updates regarding the loan sanction and disbursement. 

According to your eligibility and convenience, the education loan for working professionals can be availed from banks such as Axis Bank, ICICI Bank, Indian Bank, etc., or from an NBFC like Avanse. In general, having a minimum of 2 - 3 years of work experience and a fixed deposit is crucial to get an education loan dedicated to working professionals. 

If you are a working professional planning to take an education loan, but confused about which to choose, here’s your help - check your education loan eligibility right now.

Read also:

• Education Loan for Abroad Studies: Explore Student Loans
• SBI Education Loan
• Best Banks For Abroad Education Loans in India
• Foreign Education Loan for Abroad Studies
• Bank vs. NBFC Education Loan:

Frequently asked questions