Frequently asked questions

About us

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

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

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.

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.
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
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.
For any grievances, you can contact our Grievance Redressal Officer. Please find the details below:
GyanDhan Financial Services Private Limited Avanse Financial Services Private Limited
  • Name:  Aastha Gupta
  • Phone:  9311124837
  • Email:
  • Address:  First Floor, 262, Westend Marg, Saiyad Ul Ajaib Extension, Saket, New Delhi, Delhi 110030
  • Name:  Mr. Mithun Pillai
  • Phone:  022- 6859 9999
  • Email:
  • 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
PAMAC Finserve Private Limited (PAMAC)

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

    Financial institutions

    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.
    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.

    Private lenders (coming soon)

    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.
    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.
    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.
    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.
    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.
    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

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

    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.
    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.
    Providing collateral is not compulsory. It can however impact the amount of bids you receive and also the interest rate quoted for those bids.
    You can borrow up to the amount required to finance your education. This includes fees, living expenses, and other miscellaneous expenses. Individual
    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.
    Co-/applicant/Co-borrower/Guarantor is a signatory on a credit application who assumes equal responsibility as the applicant.
    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.
    You may still get the loan. Various variables like previous academic records, target school and country, GRE/GMAT score etc. will determine your case.
    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.
    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.
    Sanction is the official approval/permission from 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.
    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.
    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 monthly basis and N is the number of monthly installments. You can also calculate it in MS Excel using the PMT function.
    Yes, interest paid on the education loan can ​be claimed as 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.
    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

    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

    GyanDhan provides Forex card through Centrum Forex.
    GyanDhan provides Forex cards of AXIS Bank, ICICI Bank, HDFC Bank only, whichever you prefer will be delivered to you.
    Click this link and fill the form choosing the Product as “Forex Card.”
    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.
    If you order it before 2PM, then it will be delivered on the same day. Otherwise it will be delivered the next day.
    No, you can only get one Forex card from one bank. However, you can reload our existing card through GyanDhan!
    Please contact your GyanDhan Education Loan counsellor or mail us at
    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.
    It generally takes 1-2 days for the wire transfer.
    You will be sent the swift copy as confirmation to your Email Id on the next day.
    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.
    Please contact your GyanDhan Education Loan counsellor or mail us at