What's included in education loan support?

• Loan-amount calculation (tuition + living + travel + buffer)
• Lender shortlisting (public banks vs NBFCs vs international)
• Eligibility check per lender (co-applicant income, collateral, GRE / GMAT scores)
• Documentation package per lender's requirements
• Sanction-letter timeline coordination (visa-stage dependency)
• Repayment-term comparison across lender offers
• Disbursement coordination with the university bursar

How does KC's education loan support process work?

1. 1

   Loan requirement assessment

   Calculate total funding need: tuition (per university), living costs (UKVI / SEVIS / IRCC published figures), travel, and contingency buffer. Typical Indian student loan: INR 20-80 lakh depending on country + program duration.

2. 2

   Lender shortlisting

   Public banks (SBI Global Ed-Vantage, BoB, Canara, IOB) offer lower rates but slower processing + stricter collateral requirements. NBFCs (Avanse, Credila, Auxilo) move faster, accept broader collateral, charge slightly higher rates. International lenders (Prodigy, MPower) are collateral-free but US/Canada-focused.

3. 3

   Documentation + application

   Co-applicant income proofs, collateral valuation (if applicable), university admit letter, fee structure breakdown, your academic history, test scores. We coordinate with the lender; you sign at branch / online per their flow.

4. 4

   Sanction letter timing for visa

   Most countries' visa workflows require the loan sanction letter (not disbursement) by the visa filing date. We sequence the loan timeline to land 4-6 weeks before your visa appointment. Disbursement timing typically syncs with tuition due dates.

Who is this for?

Students whose family doesn't fully self-fund the abroad-study budget — which is most students applying to high-cost destinations (US, UK, Canada, Australia). Also useful for students whose family has the means but prefers to preserve liquidity by financing the study through a tax-deductible education loan (Section 80E of the Income Tax Act).

Public bank vs NBFC vs international lender — which?

Public banks: lowest rates (typically 8.5-10.5% currently), but slower (8-12 weeks processing), strict collateral requirements (residential property typically), and conservative loan-to-value ratios. NBFCs: faster (4-6 weeks), more flexible collateral (movable assets, term deposits, parental income only at higher loan amounts), rates 10-13.5%. International lenders (Prodigy / MPower): collateral-free for US/Canada masters at top universities, higher rates (12-14% USD) but no Indian collateral exposure.

How does Section 80E tax benefit work?

Section 80E of the Income Tax Act allows deduction of the interest paid on education loans (no upper limit) from your taxable income for up to 8 years from start of repayment. The deduction is taken by whoever services the loan (you post-study, or the co-applicant in initial years). Doesn't apply to principal repayment. Meaningful tax benefit for Indian-resident borrowers in higher tax brackets.

When does loan repayment start?

Typically a moratorium during the course + 6-12 months grace post-graduation. Repayment then starts; loans are usually structured over 10-15 years post-moratorium. Some lenders offer interest-payment-only options during the study period to reduce post-study EMI burden — discuss with KC if cash flow during study allows this.