Frequently Asked Questions

About Us

Why GyanDhan?

We experienced financial constraints during our studies. This experience fuels our passion for democratising education. We provide a platform for borrowers and lenders to reduce the complexity in the education loan domain and bring transparency in the pricing structure while providing multiple options for borrowers.

Does GyanDhan provide financing?

Yes, GyanDhan Financial Services Pvt Ltd is a RBI licensed NBFC (Non-Banking Financial Company)

Who runs GyanDhan?

GyanDhan is a trademark managed by Senbonzakura Consultancy Private Limited. We are headquartered in New Delhi. Please refer to the About Us section for further details on the team.

How does GyanDhan make money?

For loans given by other financial institutions, GyanDhan charges an origination fee (% of loan amount) which is based on our agreements with the partner financing institutions. Note: GyanDhan does not charge any fees from the students for the loans that it helps arrange through the banks. For loans given by GyanDhan, we earn money through fees and interest charged to customers and fees charged to institute partners

What measures does GyanDhan take to protect my privacy and confidential information?

We are customers of different services and nothing annoys us more than our information being shared without our permission. GyanDhan will not share your information with third parties for solicitation except for the purpose of fulfilling your requests. Kindly refer to our privacy document for further details. GyanDhan use encryption to ensure that the data you share with us stays totally secure.

Why do I need to provide identification details during registration?

GyanDhan is targeted for use by real humans and not bots. Identification details requested during registration helps us in the verification process. If the details in the documents match your profile information, then your account will go live and you will become a part of the GyanDhan family, thus giving you access to all necessary resources.

I would like to know more about GyanDhan? Who should do I contact?

We would love to engage with you to resolve your queries and are open to feedback / suggestions on our product offering. Please mail us at [email protected].

When should I apply for a loan on GyanDhan?

We recommend that you start assessing your finances much in advance of your actual study timelines. You can look for scholarships on our portal as a starting point. If you do not find the right scholarship, apply for a loan immediately so that you can reach out to a wider investor base.

How to contact GyanDhan for grievance redressal?

For any grievances, you can contact our Grievance Redressal Officer. Please find the details below:
GyanDhan Financial Services Private Limited
Name: Aastha Gupta
Phone: 9311124837
Email: [email protected]
Address: First Floor, 262, Westend Marg, Saiyad Ul Ajaib Extension, Saket, New Delhi, Delhi 110030

Avanse Financial Services Private Limited
Name: Mr. Gaurao Patil
Phone: 022- 6859 9999
Email: [email protected]
Designation: Vice President
Address: Avanse Financial Services Limited, 001 & 002 Fulcrum, A-Wing, Ground Floor, Sahar Road, Next to Hyatt Regency, Andheri (East), Mumbai - 400 099, Maharashtra

Who is GyanDhan's partner for loan collections?

PAMAC Finserve Private Limited (PAMAC)

What is the cancellation / refund policy?

All sanction letters have a validity period as mentioned in the sanction letter within which the loan documentation has to be completed. Customers whose loan is financed by GyanDhan may claim a cancellation within 3 days of disbursal. Post receipt of this request, we will work with your education provider to get a refund. For customers whose loan is financed by other lenders, there is no cancellation / refund policy as the loans once disbursed are supposed to be repaid in full.

How do I revoke the information access consent given to GyanDhan?

Our domestic education loan customers can click here to modify/revoke their consent. This facility is not available for our overseas loan customers

How does GyanDhan decide which loans are Overdue, SMA (Special Mention Account) or NPA (Non Performing Account)?

Please review this document to learn more Link

What is Central Know Your Customer 'CKYC'?

Central KYC Registry is a centralised repository of KYC records. Once the KYC documents are submitted by an individual, they are registered in the repository with a unique CKYC number. The CKYC number can be quoted instead of submitting physical KYC documents for any financial transaction. The CKYC repository can be accessed by all financial institutes for verifying the KYC details of their customers. Please refer to banner and video for more details:

Financial institutions

What are the benefits of partnering with GyanDhan?

Partnering with GyanDhan can help your institute to build a profitable education loan portfolio. With our on-campus presence, and our alumni engagement, we are well positioned to better understand student risk and also manage the same.

What services does GyanDhan provide?

We partner with financial institutions on a case-by-case basis. Our services include, but are not limited to, providing credit insights on the applicants and document collection. We also work closely with financial institutions to address delays in payments and defaults. You can read more about our offering at Financing partners .

How can our institution partner with GyanDhan?

Please mail us at [email protected].

Private lenders (coming soon)

Who can register as an investor on GyanDhan?

Any Indian resident with a valid PAN card and a valid bank account can register to be an investor on GyanDhan. GyanDhan reserves the right to approve / decline individual's participation on the platform based on our in-house assessment.

How do I register as a private individual?

You can start by making your account on our website and complete your profile. Once your documents have been verified, your profile goes live. You can then view loan applications and start bidding for loans.

How safe is my investment?

Before placing a bid, the lender has access to the documents submitted by the borrower, and any additional insights provided by GyanDhan. The lender decided on his own judgement whether to bid for a loan or not. Investment through GyanDhan are done at your own risk. The loan agreement is executed between the borrower and the lender only. However, GyanDhan carries out the due diligence when it comes to borrower registration and loan application. Our customer management team works closely with the borrowers to identify risk earlier than the conventional players. We can aid with the arbitration proceedings as mentioned in the loan agreement or with further legal proceedings on a case-by-case basis.

Is there a minimum investment requirement?

You can start by pledging as low as INR 10,000 on GyanDhan. We recommend that you diversify your allocated funds across different students to minimize risk. e.g.: If you want to invest INR 2million on GyanDhan, then rather than lending out to one individual who wants to pursue higher studies, we recommend splitting the same amount across multiple students, say 20 students getting 1 lakh each.

What are the costs involved? Are there any registration fees?

There is no fee for registering on our website. You can bid for loans without any charge. However, there is a one-time fee, which is levied on the successful completion of a loan agreement.

What happens if a borrower does not make scheduled payments?

Our customer management team works closely with the borrower to flag any risk of delayed payments in advance. We work with the borrowers to ensure timely repayments. Late fees are assessed in the scenario of delayed repayments. If the borrower stops making repayments, and enters into default, the standard loan document will have provisions for the advent of the arbitration proceedings. We also maintain a database of defaulters which will be shared within the community and with credit agencies, if applicable.

General questions

I am looking for an education loan. Can I apply for a loan through GyanDhan?

We are currently accepting loan applications for higher studies abroad. However, we will soon be launching loan applications for refinancing of existing education loans, and loans for coaching / vocational training. There may be certain limitations but please feel free to email us if you feel your requirement does not fit in the application form.

What is different about GyanDhan?

GyanDhan is based on the philosophy that, knowledge(gyan) is the real wealth(dhan). Information on scholarships has traditionally been quite sparse. Our aim is to generate awareness about the different financing options, which are available to students. When it comes to loan applications, we use other entities in addition to the traditional underwriting variables to provide insights, which the lenders use to make better decisions. We offer hassle-free loan applications through our one-stop solution and with the bidding option you can also get the best rate from the comforts of your home.

Who provides financing for my requirements?

We have partnered with leading financial institutions in India and abroad. In addition, we will soon open the platform for private individuals to start lending through our platform.

I completed my loan application. What happens next?

We will review your loan application and mail you in case we require any additional clarifications. After that your application will go live on our system, and can then be financed within the designated timelines.

How is the interest rate on my loan determined?

The interest rate is set by the bids of the investors. In the event of a tie, the bid which has been placed earliest will be declared the winner.

What are the fees that I have to pay?

You do not have to pay any fees to apply for a loan through GyanDhan. If the lender is a financial institution like a bank, then any fees that you need to pay to the bank will be clearly communicated to you early on in the process. You can be assured that there will be no hidden charges. We charge a commission from the lender (financial intitutions) for the services provided to the lending partners. If the lender is a private individual, you will be assessed an origination fee of 1% of the total amount, if your loan application gets funded.

What happens if I can't pay on time?

We understand that there can be unforeseen circumstances which may prevent you from making your payments on time. Our first advice would be to reach out to us as soon as you feel that you are going to be late for a payment. We will evaluate your circumstances and offer a range of services ranging from assistance in career counselling to negotiating loan terms with the lenders. However, if you happen to miss a payment, then our customer care team will reach out to you to discuss the various options. Note that your credit scores can be impacted if you have been issued a loan by a financial institution and this can have significant impact on your ability to get loans in the future. In the case of defaults, there could be a recourse to legal proceedings as allowed by the loan agreement and the existing laws. Furthermore, GyanDhan will maintain a list of wilful defaulters that can be used by various agencies for identification purposes.

Can I prepay my loan?

You can prepay the loan without any pre-payment penalties in most of the cases. In the case of an exception, it will be mentioned to you at the time of loan closing.

I have received an admit letter but I am still waiting for results from other universities, can we start the process right now for my school and then change to other university later?

Yes, but you should be eligible for the loan according to your profile and the new college from where you get admit. Moreover you don’t have to pay anything extra for the sanction letter.

I have not received my admit letter yet, can I still apply for a loan?

Yes. Some of our partners can sanction the loan before students get an admit letter. In some cases, a conditional sanction letter will be offered.

What is the difference between loans with collateral and loan without collateral?

In loans with collateral, borrowers (applicant and/or co-applicant) offer a security against their loan to the lender. For example, FDs, flats etc. can be collaterals. They are also known as secured loans. When no security is provided, loan will be referred as unsecured loan or loan without collateral.

What kind of collaterals are readily accepted by financing institutions? Are there any collaterals which are rejected?

It depends on case by case basis but generally Bungalows, Fixed Deposits, LIC , Apartments, Mutual Funds, Plots are accepted as collaterals whereas Agricultural Lands, Gram Panchayat property, Khaata-B property, Shops, Provident Funds are usually not accepted as collateral.

Should I opt for a secured or unsecured loan?

Secured loans have lower rate of interest and have greater approved amounts than the unsecured loans. Ideally, it will depend on what suits with your profile.

Can I take education loans from two different banks?

No, it is not possible. However, we have international partners who may be willing to work around this limitation on a case to case basis.

What factors will affect my loan amount and rate of interests?

Loan eligibility depends upon a number of factors like previous academic records, target school, graduating school, GRE/GMAT scores, applicant and co-applicant’s income.

What is an NBFC?

Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956, which provides only certain type of financial services without having any banking licenses.

What is the difference between taking a loan from banks and NBFCs?

Banks offer loans at lower rates of interest, simply because they borrow money from common people through deposits, whereas NBFCs borrow from banks/ financial markets at higher rates. On the other hand, banks are not flexible enough in the loan process, for eg: they will require more paperwork while NBFCs are sufficiently workable.

How does the loan sanctioned?

When your loan financing institution (banks/NBFCs) receive all the required documents from you, then the lender will provide a letter confirming that you are now eligible for the educational loan with previously decided conditions.

How does loan get disbursed?

Once the sanction letter is given to the borrower, then the borrower can apply for the loan disbursement. Disbursement letter will be provided to you as a confirmation that the lender has transferred the requested funds to you.

What is CIBIL score?

The CIBIL Credit score, is basically a summary of your entire credit history in the form of a three digit number, is derived from the information provided in your CIR. It normally ranges from 300 to 900. A higher score indicates that you are a less risky borrower, thus increasing your chances of availing a loan whereas a lower score decreases that probability.

How can I check my CIBIL score?

You can check your CIBIL score by filling a form on for some charges. You can also check it through banks with some fees.

What is margin money?

If you need, say, a loan of Rs 100,000 and the lender is ready to finance 80% (Rs 80,000) of the loan amount then you will have to make arrangements for the remaining 20% (Rs 20,000). This Rs. 20,000 is called as margin money and can come from scholarships, assistantship earnings or personal savings.

What is Prepayment Penalty?

Prepayment Penalty is the penalty that the borrower needs to pay when he/she repays their loan early then the scheduled time period.

Loans for higher education

My school is not listed on the form. Can I still apply for a loan?

Yes, you can still apply for a loan. For applications to US schools, which are not listed on the form, it might limit the number of lending partners who could be interested in your profile. We are working to add non-US listed schools in our review mechanism, but that should not deter you from applying for loans to schools in other countries, as we will work with our partners on a case-by-case basis.

Do I need a co-signer to apply for a loan?

Having a co-signer is not compulsory. It can, however, impact the amount of bids you receive and also the interest rate quoted for those bids.

Do I need to provide any kind of collateral to get a loan?

Providing collateral is not compulsory. It can, however, impact the amount of bids you receive and also the interest rate quoted for those bids.

How much can I borrow?

You can borrow up to the amount required to finance your education. This includes fees, living expenses, and other miscellaneous expenses.

Which documents will be required for the loan?

The common documents generally required by banks and NBFCs for loan purposes are termed as KYC - Know Your Customer. This includes applicant’s documents as given below: 10th class mark-sheet, 12th class mark-sheet, Undergraduate Latest Mark-sheet, GRE/GMAT Examinee Score Report. College Admit Letter, PAN Card, Passport, Aadhaar Card. And you would also require to furnish the co-applicants: PAN Card, Ownership proof such as House tax, Electricity Bill, Title deed, Aadhaar Card. Other financial documents like ITR, Bank Statements, Salary Slips etc. may also be required.

Who is co-applicant/co-borrower/guarantor?

Co-/applicant/Co-borrower/Guarantor is a signatory on a credit application who assumes equal responsibility as the applicant.

Who can be my co-applicants?

Banks and NBFCs approve the co-applicants who are closely related such as father, mother, brother, sister, or immediate relatives from maternal/paternal side. In some cases, cousins, uncles and other relatives may also be considered.

I don’t have any co-applicant. Can I still get a loan?

You may still get the loan. Various variables like previous academic records, target school and country, GRE/GMAT score etc. will determine your case.

Do I have to pay interest on my loan amount while I am studying?

In secured loans, you need not pay any interest while you are studying. This period duration (in months or years) in the loan term when the borrower doesn't have to pay any money i.e. no repayment or EMI is called moratorium period. On the other hand, in unsecured loans/loans without collateral, you will have the to pay either full or partial interest while you are studying.

How much interest will I have to pay during the moratorium period?

Full or partial interest, as determined on a case-to-case basis, needs to be paid on unsecured loans during the moratorium period. For secured loans, you don’t have to pay it.

What is the difference between sanction and disbursement?

Sanction is the official approval/permission from a financial institution (banks or NBFCs) that the borrower is eligible for the loan applied if the stated conditions are met. Disbursement is the actual official payment of your loan to you.

In what means can I repay my loan?

Applicants generally have the option of repaying through Equated Monthly Instalments (EMI) or Simple Interests (SI) or Partial Simple Interests (PSI) depending on whether your loan is secured or unsecured.

How will the EMI of my loan be calculated?

EMI is calculated using the formula: EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1] , where P is Principal Loan Amount, R is the rate of interest calculated on a monthly basis and N is the number of monthly installments. You can also calculate it in MS Excel using the PMT function.

Are there any tax benefits in educational loans?

Yes, interest paid on the education loan can be claimed as a deduction from income tax, as per Section 80E of the Income Tax Act of India. Thus, it will reduce the amount you have to pay from your side.

Can I pay my educational loan in advance?

Yes, you can prepay your educational loan. There is no prepayment penalty on any loan through GyanDhan.

Loans for skill building courses / Loans for domestic institutes

Who is the lender? Why does the loan agreement mention an entity other than GyanDhan?

GyanDhan operates a marketplace and has partnerships with lenders (Banks and NBFCs) to facilitate loans. For the loans in the domestic space, including skill development loans, GyanDhan's partners include Avanse Financial Services Ltd., and Apollo Finvest India Ltd. A prospective borrower will be informed of the final lender after the loan application is completed and the customer would have an option to not proceed with the loan application should they choose to back out at any point in time.

General questions for other services

Does GyanDhan provides Forex card?

GyanDhan provides Forex card through Centrum Forex.

Can I get a Forex card of “XYZ” bank?

GyanDhan provides Forex cards of AXIS Bank, ICICI Bank, HDFC Bank only, whichever you prefer will be delivered to you.

How can I get a Forex Card from GyanDhan?

Click this link and fill the form choosing the Product as “Forex Card.”

What are the benefits of getting my Forex card from GyanDhan?

You should get Forex Card from GyanDhan because

  • - We have absolute best rates in the market, which are the same as inter-bank exchange rate.
  • - Get the card delivered on the same day or next day.
  • - No card issuing fees and no fee charged for adding balance in card.
  • - No charge on any e-transaction via card on any outlet in the target country.
  • - First 3 ATM cash withdrawals will be free, ~ $2 would be charged after that.
  • - Free insurance cover will cover up to INR 80000 on card theft or if the card is lost.
  • - Customer can carry multiple currencies in one card.

When will I get delivery of my Forex card?

If you order it before 2PM, then it will be delivered on the same day. Otherwise it will be delivered the next day.

I have a Forex card from XYZ bank. Can I buy another one from the same bank?

No, you can only get one Forex card from one bank. However, you can reload our existing card through GyanDhan!

I am facing problems in my forex card delivery. Whom should I contact?

Please contact your GyanDhan Education Loan counsellor or mail us at [email protected]..

Can I transfer money from my account to an account in USA?

Yes, this money transferring between accounts is known as wire transfer. GyanDhan provides this service through our partner Centrum. Click this link and fill the form choosing the Product as “Wire Transfer.” to transfer money.

What is the time taken for wire transfer?

It generally takes 1-2 days for the wire transfer.

How will I know my wire transfer is complete?

You will be sent the swift copy as confirmation to your Email Id on the next day.

Can I get some cash in foreign currency through GyanDhan?

Yes. Please write to us at [email protected]..

What are the common problems faced in wire transfers?

Inaccurate account number or wrong details given like transfer amount or date, delay in payment or rejection for some reasons like insufficient funds, long processing time etc.

I am facing problems in my wire transfer. Whom should I contact?

Please contact your GyanDhan Education Loan counsellor or mail us at [email protected]..