Pursuing higher education abroad is a life highlight for many students but it comes with its own set of challenges. You have to choose the best country, program and university, but even after making these tough choices, you are left with a big question. How do you fund your international studies? Countries like the USA are notorious for high tuition fees and expensive cost of living. While other less expensive countries or those offering tuition-free education, like Germany, still require you to cover travel, housing, and personal expenses.
As international students, you will most likely have to rely on loans for at least part of your total funding. About 2 to 2.5 million students apply for loans annually to fund their higher education. Over 90% of these education loans are used for studies abroad. However, the traditional process of acquiring loans from banks or NBFCs works against the student’s interests.
In this blog, we will explore how an alternative education loan financing platform. GradRight can make searching, applying for, and managing loans easy and simple.
What is GradRight’s loan search platform?
GradRight’s loan search platform is one of India’s first loan-bidding online interfaces, which simplifies the process of securing education loans.
We connect students to a network of over 15 banks and NBFCs (Non-Banking Financial Companies) in India and abroad. Instead of applying to each lender separately for loans, students can submit a single application, after which lenders offer their best loan terms.
The process is algorithm-driven and focuses on student merit and future potential. Students can compare, negotiate, and select the most favorable loan offer, all through one interface.
- One application, multiple offers
- No repeated document submissions
- Transparent, merit-based assessment
- Fast turnaround (offers in as little as 2–4 days)
Before getting into more detail about GradRights’s reverse bidding loan platform, let’s reflect on the traditional way to apply for loans.
How traditional education loans work
Traditionally, if students needed education loans, they would turn to public and private banks or NBFCs. The process would involve many time-consuming steps:
- Research and select a lender.
- Fill out separate applications for each lender.
- Provide extensive documentation (admission letter, academic records, collateral documents, co-signer details).
- Undergo interviews and credit checks.
- Wait for approval, which can take from several days to weeks.
The selection process itself requires you to invest significant time and effort to compare loan terms like interest rates, co-applicant, and collateral (property, fixed deposit, etc) requirements. For instance,
- SBI’s Global Ed-Vantage offers up to ₹3 crore (with ₹50L collateral-free loans for premier institutes).
- HDFC Credila covers 100% of fees with collateral (up to ₹75L without).
- Axis Bank also offers unsecured loans (up to ₹50L) in some cases.
All this research and coordination would take weeks to complete and involves various downsides:
- A cumbersome process of application, documentation, and approval. Repeated paperwork and in-person visits are also required.
- Limited ways to compare loans. Students have to apply to each lender separately and compare offers and terms by hand.
- Students are able to see only a fraction of all available options. This can lead to suboptimal loan choices or higher debt burdens.
- Urban bias, where students from smaller towns or lower-income families usually face more obstacles in accessing loans and information, is also associated with the traditional loan system.
However, GradRight’s loan search platform changes the game and reduces the drawbacks associated with the traditional loan-acquiring process. We bring transparency, speed, and accessibility to every student.
Key differences: GradRight vs. traditional education loan process
GradRight connects you to many lenders online for quick offers, unlike the traditional, tedious process of getting a loan from one bank with more paperwork. Interest rates, collateral needs, fees, disbursement speed, and repayment flexibility are all displayed to you on a single interface with GradRight. This saves time and gives students full control over their options.
Knowing the differences between using GradRight and visiting each lender separately is important to find the easiest, cheapest way to finance your dream of studying abroad. Let’s compare GradRight’s education loan search platform with the conventional way to acquire loans.
GradRight vs Conventional Loans: Interest Rates & Flexibility
GradRight’s reverse loan bidding platform helps students get better deals. Multiple lenders compete for your business. This competitive environment keeps the interest rates down and offers you more options. In contrast, the traditional loan process involves fixed-rate slabs with little room to negotiate.
Most loan offers for studying abroad through GradRight fall between 9.25% and 13.50% per annum.
On GradRight, you can compare rates and terms side-by-side with full transparency. You can also talk to expert advisors to help you understand complex terms and negotiate better deals.
Normally, you are offered a fixed rate based on the bank’s policy when approaching individual banks with little flexibility.
GradRight vs. Traditional Loans: Collateral & Co-Signer Requirements
Banks like SBI demand a parent or guardian co-borrower on every education loan, and also require tangible collateral for loan amounts above ₹7.5 lakh. While conventionally, loan terms are stricter and hard to negotiate, GradRight’s market-driven model makes sure you get access to multiple lenders with varied requirements.
Therefore, collateral and co-signer rules are more relaxed on our platform. Many partner lenders don’t require you to pledge property or bring a guarantor to reduce the burden on your family in the future.
GradRight vs Bank: Loan Approval Process
On GradRight’s education loan search platform, students can search and secure their loans in five easy steps. First, you enter basic details about your admission status with aptitude and language tests.
Next, you select the universities you have applied to or the one from which you have received the acceptance offer. Unlike traditional limited options, you can choose from over 40,000 universities in several countries, including the USA, UK, Australia, Germany and more.
You can choose to enter the loan amount or skip it if you’re not sure.
Your location is the final step before getting started.
And, just like that, you are ready to go. Just sign up with your details to start getting loan offers from 15+ banks and NBFCs.
Once logged in, you can compare loans on various parameters such as interest rate, repayment terms, and collateral requirements. You only submit documents digitally with selected lenders.
You can get your loan approved within 10 working days. Traditionally, each bank processes loans on its own. GradRight’s loan search platform is fully online – no branch visits or physical follow-ups required from your end.
GradRight vs Bank: Loan Disbursement & Repayment Terms
Unlike many traditional banks with stricter and less customizable repayment structures, GradRight offers loans with flexible repayment terms. You can also easily calculate your repayment terms and compare different loan offers right on GradRight’s portal. We offer different tools to estimate your EMIs, tenure, and interest outgo.
GradRight’s portal also streamlines the disbursement process, so you don’t face unnecessary delays. Lenders release tuition funds directly to your university once you submit a disbursement request. In contrast, a regular bank might still have you hand-deliver or mail the request.
The table below summarizes the main differences between using GradRight and acquiring your loans through the traditional process.
| Feature | Gradright’s University Search Platform | Traditional Education Loan Process |
| Loan Application | 100% online, single form | Offline/online, multiple applications |
| Approval Time | Within 10 days | 2–3 weeks or more |
| Interest Rates | Competitive offers through bidding model | Fixed by the lender, less flexible |
| Collateral and Co-applicant Requirement | Flexible | Mandatory for higher loan amounts |
| Transparency | Full visibility into offers and terms | Limited—bank decides terms |
| Student Control | High—students choose the best offer | Low—banks accept or reject offers |
| Support | End-to-end expert, unbiased support by GradRight | Limited with bank representatives |
Moreover, GradRight’s loan-bidding platform does not set restrictions for Indian students applying for loans. Most students can submit their application online and get loan offers from multiple lenders.
Pros of using GradRight for your education loans
Now that you have seen how the conventional way to secure loans stacks up against GradRight’s platform, let’s break down the benefits and disadvantages of using GradRight.
Pros
- Multiple Lender Access and Comparison: GradRight connects you with a pool of banks and NBFCs. This makes it easy to compare the best education loan options side by side and choose the best terms for your needs.
- Loan Bidding Platform: Lenders compete to offer the most attractive loans. This results in lower interest rates and better terms for students.
- Fast and Streamlined Process: The digital platform significantly reduces approval times. What traditionally took weeks or months, you can now complete in days.
- Customized and Transparent: Our university search platform uses data analytics and machine learning to match students with the most suitable universities before the loan process without bias.
- Unsecured Loan Access: Students, including those from smaller towns and lower-income backgrounds, can access unsecured education loans. This is usually difficult through traditional channels.
- Flexible Repayment Options: GradRight also offers flexible repayment plans, including income-based options, to help you manage your finances post-graduation.
- Excellent Support: Our dedicated support teams help you understand and interpret loan offers and university/program choices.
- No Barriers: Students from anywhere in India can access our platform and its network of lenders and educational institutions.
How to choose the best financing option for your study abroad journey
Outstanding student loans in India crossed over INR 1.31 lakh crore in 2024. With traditional education loans, students often face rigid rules, limited information and a lack of transparency. Sometimes, international students end up getting a loan amount that does not fully cover their expenses abroad. This can lead to last-minute financial stress and even prevent you from meeting your repayment terms.
It is best to compare the total cost (interest rate + processing fees), flexibility, and eligibility requirements when choosing a loan for studying abroad. Also, consider your risk tolerance regarding collateral and your ability to provide a co-signer. Therefore, if you value speed, convenience, and the ability to compare multiple offers for better financial planning, GradRight offers a clear advantage. Our education loan comparison platform empowers students with the data and expert support to confidently do just this and more.
Planning your financial expenses abroad is important to avoid funding gaps and minimize long-term student debt. We offer tools and personalized financial assistance that go further than loans.
- GradRight’s university search platform uses data and expert insights to suggest your best-fit universities and programs. It is free to use and unbiased from university commissions or lender influence. With GradRight’s AI-powered tools, you can start financial planning even before searching for loans. Estimate your total tuition fees and living expenses. You can also compare and plan your education financing options, including loans, scholarships, grants, and part-time work, in advance.
- GradRight’s value-added services can also help you with other important study abroad expenses like forex cards, travel insurance, accommodation, or international bank accounts. We also offer exclusive scholarships, such as the Women-in-STEM Scholarship worth over $24,000 to support meritorious female students. Moreover, You can refinance your existing loan, meaning you switch to better terms from another lender. This will help you reduce EMIs and save on interest over time.
FAQs
1. What makes GradRight different from traditional education loans?
GradRight lets you compare multiple loan offers from top lenders with one application online. Whereas, you normally would have to visit multiple banks to choose the best education loan for your stay and studies abroad.
2. Which option offers lower interest rates?
GradRight’s digital platform enables students to compare and secure education loans from multiple lenders through a competitive bidding process. This helps you access some of the best rates available in the market.
3. Do I need collateral or a co-signer for loans on GradRight?
No, many lenders on GradRight offer loans without collateral or a co-signer. However, the terms depend on your profile, course, university, and the lender’s specific criteria.
4. Is GradRight available for all international students?
Yes, GradRight’s loan comparison platform is for Indian students planning to study abroad. It connects you to Indian and global lenders for the best education loan offers for various countries and courses.
5. How do repayment terms compare between GradRight and traditional loans?
Lenders often offer flexible repayment options on GradRight. Students can choose and compare loans on longer tenures, lower EMIs, and prepayment freedom.
