InCred Education Loan for Studying Abroad

InCred is an NBFC that offers a collateral-free loan of up to ₹1.5 crore. InCred education loan interest rates start at 10.50% for secured and unsecured loans and USA STEM courses. For Non-USA STEM courses, the interest rate starts from 11%. InCred can cover 100% of your tuition fees and other eligible education expenses. 

InCred finance education loan is best for students who want a higher loan amount without pledging security. With the online application and fast processing time of around 7 working days, it is one of the most popular choices among students going for overseas studies. 

So, is an InCred education loan right for you? In this guide, we will walk you through the interest rate, eligible courses and countries, eligibility criteria, required documents, and the complete application process. This will give you a complete picture of what to expect before applying for an InCred education loan.

This video provides a complete guide to the Incred Loan for studying abroad, encompassing details on schemes, loan amounts, interest rates, and processing fees. Where, our co-founder Damini Mahajan explains everything you need to know about Incred Education loans.

InCred Financial Services Limited (formerly known as KKR India Financial Services Limited) is an NBFC registered with the RBI. InCred education loan offers a maximum loan amount of ₹1.5 crore. The other loan factors and details, like interest rate, loan amount, and processing fee, are given below:

Note: The interest rate and amount mentioned are indicative and may change based on the RBI’s repo rate, the student's profile, and the bank’s discretion.

InCred education loan for abroad studies is designed for students aiming for countries like the USA, Canada, Germany, Australia, and Ireland. It covers major courses like STEM and MBA programs. The InCred education loan for abroad studies is subject to the lender’s assessment of the course, university, study destination, academic profile, and co-applicant’s credit history.

Countries Covered 

For an unsecured loan, the interest rate for the USA is 10.50% to 12%, and for Non-USA countries it is around 12%-13.5%. However, the education loan interest rate can change according to the student's profile, co-applicant's credit assessment, and the bank's loan terms. The InCred education loan for abroad studies covers countries like Australia, Canada, Germany, Ireland, Singapore, Hong Kong, the Netherlands, and New Zealand in the non-USA category.

Courses Funded

InCred Finance education loan provides funds for undergraduate, master’s, and doctoral courses, plus certificate and diplomas, in all fields of study. InCred processes loans only for courses and institutes that have the required approvals or accreditation.

An InCred education loan without collateral means you do not pledge property or deposit security. InCred offers a loan amount up to ₹1.5 crore for its non-collateral loan. The rate of interest varies between 10.50% and 12% for the USA and 12%-13.5% for Non-USA countries.

Secured, Partially Secured vs Unsecured: What Changes?

• Secured loans: This type of loan is backed by acceptable collateral or security. The accepted collateral is commercial, residential, or industrial property, a fixed deposit, or a vacant plot of land. 

• Unsecured loans: In an unsecured loan, no collateral is pledged as security for the loan sanction. Hence, loan eligibility depends heavily on academic merit, the university of choice, and the co-applicant's income and credit score.

• Partially Secured Loan: A partially secured education loan is a loan where the student provides collateral, such as property, to cover only a portion of the total amount, while the remaining amount is not backed by collateral.

Note: The interest rate and amount mentioned are indicative and may change based on the RBI’s repo rate, the student's profile, and the bank’s discretion.

Which Profiles Qualify for a Non-Collateral Loan?

The eligibility for a non-collateral loan depends on the student's profile and is assessed case by case. The profile includes financial data, academic results, and the target university, country, and loan required.

The InCred education loan interest rate ranges from 10.50% to 18% p.a. The rate you receive depends on whether you choose a secured or unsecured loan, your study destination, and the lender's terms and conditions.

Note: The interest rates mentioned are indicative and may change based on the RBI’s repo rate, the student's profile, and the bank’s discretion.

How Does InCred Price Your Loan?

The InCred education loan interest rate for each student is assessed by InCred’s credit norms and conditions. Its rate of interest depends on multiple risk parameters. The list is given in the section below:

What Decides Your Interest Rate?

The factors that influence the InCred finance education loan interest rate are:

• Loan amount and tenure

• Borrower profile and their income

• Cash flow repayment capacity

• Value of the asset financed or security cover

• Type of collateral security

• Past repayment track record

The official range of interest rates for different types of loans is mentioned above, but it is important to note that the interest rates can exceed the given rate. InCred can offer a higher interest rate to applicants with weaker profiles to offset the risk they are taking while offering the loan. The highest possible interest rate through InCred in any scenario is 18%. 

Rate of Interest Through WeMakeScholars

The interest rate mentioned above can be negotiated when you apply through WeMakeScholars. Request a callback today to explore an interest rate personalised to your profile, study destination, and the total loan amount required to cover your education.

The InCred education loan covers 100% of fees and expenses, with a loan amount up to ₹1.5 crore. This means you can borrow up to the full cost of attendance certified by your institution. InCred covers tuition fees, housing costs, food, books, laptop, travel expenses, and insurance coverage. If you are eligible for any scholarships or grants, then the sanctioned amount will be deducted accordingly. 

The InCred education loan processing charges and other charges are listed below, excluding GST and other taxes.

Note: The interest rates mentioned are indicative and may change based on the RBI’s repo rate, the student's profile, and the bank’s discretion.

InCred has a specific set of eligibility criteria in terms of student eligibility, co-applicant requirements, and eligible courses and countries. Below are the details of each eligibility factor to help prevent delays in the education loan process.

Note: Your eligibility and loan approval will depend on InCred’s assessment of the overall profile, co-applicant's financial situation, course, and university. Verify the latest requirements with InCred before applying.

Students can use the table below as a checklist of documents required for an education loan before starting the loan process.

InCred education loan repayment is 10-15 years, which includes the moratorium period. The loan repayment period runs from the date of your disbursement to the date the final Equated Monthly Installment (EMI) is cleared.

The InCred bank education loan repayment has two phases: a moratorium, then EMIs covering principal and interest. EMIs start as soon as your moratorium period ends and are debited by NACH* from your co-applicant’s Indian bank account.

Note: A *NACH is an e-mandate which acts as an instruction that gives the bank legal permission to auto-debit your monthly interest or EMI payments. It allows EMI to be directly debited from the selected savings account on a fixed date each month.

Moratorium Period and Payment During Study

The InCred education loan moratorium period is the course duration + 1 year. The complete details are as follows:

Repayment Tenure

InCred education loan repayment is 10-15 years, but the exact repayment tenure is detailed in the loan documents, so confirm the tenure before accepting. The tenure may change according to the course, loan amount, and the bank's revised terms.

EMI Calculator

EMI in an education loan is the repayment of interest and a part of the principal amount every month until the complete debt is cleared for the complete repayment tenure.

Let us consider a case study of one of our students from WeMakeScholars who opted for an education loan from InCred. The student took ₹40 lakh at an 11.5% interest rate, so the total EMI and loan amount repaid at the end of the 10th year are illustrated below.

Note: The interest rates mentioned are indicative and may change based on the RBI’s repo rate, the student's profile, and the bank’s discretion.

This is an illustrative example; you can calculate your EMI through our WeMakeScholars education loan EMI calculator.

Prepayment and Foreclosure Charges

Prepayment is the payment of a large sum of the outstanding principal amount. This reduces the outstanding principal balance and lowers the tenure and monthly EMI.

Foreclosure (Full Payment): Here you pay the entire remaining loan balance in one go. This closes the loan and ends future interest obligations, subject to the loan terms.

Both decrease the interest amount you pay during the repayment tenure. However, InCred does not charge prepayment or foreclosure charges for an education loan.

The complete step-by-step application and education loan process for InCred is given below:

1. Sign Up: Create your account on InCred’s student loan page or in the app.

2. Check Eligibility: Enter your details, course, country, and university. InCred allows you to apply before you get admission and update your course and university later.

3. Get Your Offer: Check the interest rate (10.50%-18% p.a.), the loan amount, and the charges before you proceed with the loan process.

4. Complete the Application Form and KYC: Add co-applicant’s details and upload complete KYC details and financial documents.

5. Get Sanction Letter: After the legal and valuation process and other scheduled charges, you will get the sanction letter. The sanction letter outlines the complete loan amount, moratorium, EMI payable, and loan repayment tenure according to your profile. 

6. Set Up Repayment: EMIs are debited by NACH from your co-applicant's Indian Bank account.

7. Receive Disbursement: Disbursement takes about 7 days after the bank's formalities and additional days to transfer to your university according to forex conversion.

To apply for an education loan from InCred through WeMakeScholars, follow the steps below:

Step 1: Connect with our financial officer by requesting a callback or filling out the education loan common application form. 

Step 2: Provide your loan profile details, as requested over the call.

Step 3: Upload your documents on the WeMakeScholars documents portal using the document upload link.

Step 4: Your financial officer will look into the process and get your loan sanctioned within 1 week.

Step 5: Collect your loan sanction letter from the bank.

If you visit the bank directly to get your loan sanctioned, your loan processing will not be as simple as described above, because then you will have to face the following issues during the process:

• Multiple visits to the bank

• Delay in the processing

• Incomplete information about loan schemes

• Poor customer service

• Post-sanction disbursement issues

• No particular list of required documents

• No negotiation support

• Lengthy documentation process

• Minimal Processing Time: If processed through a public bank, your education loan is sanctioned within 15-20 days. If processed through a private bank or an NBFC, your loan will be sanctioned within 7-10 working days after you submit all the required documents.

• Expert Advice: Our financial officers give you full guidance to compare and select from different options of education loan lenders in accordance with your eligibility, study destination, and loan amount required.

• Support for Negotiations: If necessary, our financial officers will negotiate with the lender's team to modify the bank's policies to sanction your education loan.

• Digital Application Process: We enable you to apply for and receive approval for your education loan through an online process.

• Tax Benefits: We assist you in gaining tax benefit programs like 80E and tax collected at source (TCS).

• End-To-End Support: Students come to us to get a loan sanctioned, and we in turn provide them with assistance throughout their loan period until the repayment of the full loan.

• Cashback: Students going through us earn cashback of up to ₹3,000 on their first disbursement.

To enjoy the above benefits, start your loan process with WeMakeScholars today by requesting a callback or filling out the common application form.

Education loan transfer means students can transfer their existing education loan from their current lender to InCred. It helps students to enjoy the following benefits:

• Wider loan coverage 

• Easy repayment policies

• Student-friendly bank terms and conditions

• Faster bank processing

To transfer your education loan to InCred, follow the steps below:

Step 1: Ask for proof of the outstanding amount due from your present lender.

Step 2: Talk to your financial officer at WeMakeScholars, mentioning that you need to get your education loan transferred.

Step 3: Submit your documents to the InCred officer as per the documents checklist given by your financial officer.

You will be contacted by your loan transfer officer once your application is approved.

Students often wonder whether InCred Finance is safe or not. Yes. It is safe. InCred is a leading NBFC. It is fully approved and regulated by the RBI. InCred's website is linked to the RBI’s complaint and fraud-awareness portals. It is also a part of the Ombudsman scheme. This means any disputes between the applicant and the NBFC can be resolved by an independent party set up under the Ombudsman scheme. Hence, InCred Finance is safe for students aspiring for an education loan.

Other Benefits of InCred are:

•  InCred has an online and transparent education loan process.

• Top-up loan/increase in loan amount as required by your university, if provided with all the required additional documents.

• 100% tuition coverage.

• Fast processing time of around 7 days.

• No prepayment and foreclosure charges.

You can check your InCred education loan application status using your existing user login on InCred’s site or the InCred app. You can also check your InCred education loan status by asking support for an update.

Note: The interest rates mentioned are indicative and may change based on the RBI’s repo rate, the student's profile, and the bank’s discretion.

The InCred education loan offers a collateral-free loan of up to ₹1.5 crore for students planning to study abroad. It has competitive rates of 10.50% to 18% p.a. and 100% expense coverage. Submit all documents and KYC details to avoid delays in the education loan process. Before you accept the loan, read the sanction letter for the rate, tenure, moratorium, and other charges.