InCred Education Loan for Studying Abroad: Interest Rates, Documents, and More

Introduction to InCred education loans

There are a total of 91 commercial banks operating in India. Even if we consider the banks that offer education loans to students who want to study abroad, we are still looking at dozens of banks. Besides banks, the category of Non-Banking Financial Companies (NBFCs) have been on the surge. Many NBFCs can offer products with much more benefits than those offered by some banks. This is particularly beneficial for students as when there is fierce competition in the market, it means the consumer stands to gain. InCred is another name in the list of NBFCs offering student loans in India. InCred education loans have become very popular among students. This guide answers all your questions about the loans offered by InCred.

About InCred education loans

Before we get into the details of InCred education loans, let’s understand the company a bit better. The full name of the company is InCred Holdings Limited (it was formerly known as KKR Capital Markets India Limited). Its head-office is in Mumbai. It acquired an NBFC License in 2016, so it has 8+ years of experience in the market by now (as of mid-2024). 

Students may be familiar with InCred because it made news in 2023 for becoming a Unicorn. InCred mainly offers personal loans, education loans, and SME loans. This guide focuses on InCred education loans. 

Like most high-tech banks, InCred education loans can be availed using a completely online loan application process. The annual interest rate is based on the loan terms, loan amount, and credit assessment of the borrower. In the next section, we will give you an overview of the maximum amounts for InCred education loans and also tentative interest rates students can expect.

Interest rates for InCred education loans 

Please note that the InCred education loan interest rate depends on many factors and it’s not possible to provide exact details. However, we can offer an overview based on the most recent data. The following table outlines the InCred educational loan interest rates you can expect:

Loan Type	Loan Amount	Rate of Interest	Tenure
Non-Collateral Loan	Up to 80 lakhs	11.85% – 13%	12 years
Collateral Loan	Up to 80 lakhs	Marginally less	12 years

This should give you a clear idea of what to expect when considering an InCred education loan.

Application process for InCred education loans for Indian students

InCred offers a straightforward application process that is completely online. All you need to do is follow these steps:

Check Your InCred Education Loan Eligibility

You will need to fulfill the typical eligibility criteria for education loans. We will cover these in greater detail in a later section in this guide. 

Fill Out an Application Form

Submit all supporting documents to InCred. You can request a pick-up for your documents or fill out the attached form and upload your documents online.

Application Form

Note: A big question students face during the InCred education loan application process is whether they can apply only after getting an admission letter. The good news is that you can apply at any point during your admissions process. Whether you have just received your standardized test score or have started your application process for admissions, you can apply for a loan. You can also apply after receiving your admission offer.

Wait for an Update from InCred

Once done, wait for a week for an update from InCred. In most cases, you can expect to be asked for more documents because the list of documents to be submitted is quite extensive. We will give you all the info later in this guide.

Note: While InCred is a good choice for students, most students are more comfortable applying to multiple lenders to ensure their education loan is processed in time. FundRight can help here. You can get competitive loan interest rate offers for InCred as well as 14 other top-rated Indian banks and NBFCs, and international NBFCs. When there is competition, you as a consumer get better offers. This logic works with FundRight too, which is why many students have saved lakhs on their education loans using FundRight. Find out how much you can save by comparing InCred education loan offers with 14 others on FundRight. Here’s how FundRight works.

1. Sign up for free on FundRight and fill in all the necessary details.
2. The top 15 lenders in India and abroad will review your profile and provide competitive loan offers.
3. Compare the loan offers based on different criteria. Get help from dedicated and unbiased financial experts at FundRight to find the best loan and negotiate better terms.
4. Securely upload all your required documents through the FundRight portal, eliminating the need to submit your documents to multiple lenders.
5. Wait for your loan approval decision, which can sometimes be made in as little as seven to ten days.

Next, let’s find out how you can check whether you are eligible for an education loan from InCred

Also Read: Education Loan for Abroad Studies (Comprehensive Guide)

Eligibility criteria for an InCred education loan

Nationality and Residence

• Indian citizens or Indian passport holders who are currently enrolled or planning to enroll in an eligible course can apply.
• The co-borrower must also be an Indian national or passport holder.
• Non-Resident Indians (NRIs) with an Indian passport or with Overseas Citizens of India (OCI) or Persons of Indian Origin (PIO) cards are eligible to apply, subject to additional conditions on a case-specific basis.

Eligible Courses

• InCred provides education loans for undergraduate (bachelor), graduate (master), and doctoral (PhD) levels.
• Certifications and diplomas are also eligible for loan consideration.
• Loans are available for courses in all fields or streams of study, majors, or subject areas.

Approved Programs and Institutions

• Loans are processed only for courses and institutes that have the required approvals, authorizations, or accreditations from relevant bodies.
• Eligible programs are available in major destinations including the United States of America, Canada, Australia, Germany, Ireland, New Zealand, Singapore, Hong Kong, Netherlands, India, and more.

These criteria ensure that a wide range of students can avail InCred education loans to pursue their academic goals in recognized programs worldwide.

Why choose InCred for your study abroad loan?

There are many reasons why you would want to choose an InCred education loan. Here are some of them:

1. Quick Approval

   One of the concerns for students seeking education loans is whether their application will be accepted in time for admission. With InCred, students can rest easy as the processing times are short, and InCred claims that students can even get their loan approved in 5 days.

2. Easy Digital Journey

   Another problem students face when applying for education loans is handling a lot of paperwork. InCred simplifies this by offering a completely digital process for sharing your documents. However, if you also apply to another lender (which many students do), you will need to re-upload the documents to their portal. This is one issue you can solve by getting your education loan via FundRight. Once you upload your documents securely on FundRight, you will never have to re-upload them, irrespective of how many lenders you apply with.

3. Competitive Interest Rates
   

   InCred education loans are granted after a risk profiling of candidates, which influences the interest rate you get. If you have a strong academic background and are seeking admission to a prestigious educational program abroad, you can expect competitive loan offers from InCred. Of course, when you go via FundRight, you get competitive loan offers from 14 other top lenders in India and abroad as well.

4. Up to 100% Fees and Expense Cover
   

   Some lenders do not cover all the expenses of studying abroad. InCred education loans offer 100% coverage for fees and indirect costs like boarding, lodging, food, and even travel tickets.

5. No Hidden Charges
   

   One of the big fears among students when budgeting for international education is encountering unplanned costs. When you choose an InCred education loan, you can be assured that there won’t be any unexpected hidden charges. Note that there are fees associated with getting an education loan, which are on par with other lenders too. If you go via FundRight, you can be even more assured as you will always have access to a financial expert who can advise you on how best to avoid unbudgeted expenses and to get the best education loan offer from the lender of your choice.

Other Banks & NBFCs Offering Education Loan to Study Abroad:

• Union Bank of India Education Loan
• ICICI Bank Education Loan
• Yes Bank Education Loan
• IDFC Bank Education Loan
• Bank of India Education Loan
• State Bank of India Education Loan

InCred education loan EMI calculator

InCred does not offer an education loan calculator or an EMI calculator like many other banks do. However, you can still use GradRight’s EMI calculator for your InCred education loan. Here is how you can use it:

1. Access the EMI calculator from Fundright.
2. Enter the loan amount you wish to apply for, the tenure you wish to pay it over, and the interest rate you are getting from InCred.

On the left side of the calculator screen, you will see the EMI figure as well as the total interest you will pay over the repayment tenure.

An illustration of an education loan EMI calculator from Fundright

Next, let’s find out all the documents you will have to submit with your loan application when you apply for an InCred education loan.

Documents required for securing a student loan from InCred

Applicants and their co-applicants must provide the following documents. Ensure that all information in the application form matches the supporting documents.

Completed Application Form

The form must be signed and include pasted photographs.

1. KYC Documents (Self-attested)
   • Photo ID (Any one):
     • PAN Card
     • Passport (mandatory for overseas course applicants)
     • Driving License
     • Voter ID Card
     • Aadhaar Card
   • Residence Proof (Any one):
     • Passport (front and back)
     • Bank statement with address
     • Utility bill (latest, not older than 3 months)
     • Registered leave & license agreement + address proof of landlord (utility bill)
     • Voter ID Card
     • Sale deed of property with share certificate + maintenance bill
   • Signature Verification (Any one):
     • PAN Card
     • Passport
2. Academic Documents
   • 10th & 12th (SSC & HSC) mark sheets and certificates
   • Undergraduate (bachelor’s) mark sheets and certificate
   • Standardized/Entrance Test Scores (GRE/GMAT/SAT/CAT/etc.)
   • English Test Scores (TOEFL/IELTS/PTE)
   • Admission Letter, I20, CAS, CoE, Fee Structure, Scholarship letter, fee paid receipts/invoices (all that apply)
   • Student Visa Approval
   • Professional History: Resume/CV, last pay-slip, appointment/experience letters (if applicable)
3. Financial Documents
   • Salaried:
     • Latest 3 months’ salary slips/salary certificate
     • Latest 2 years Form-16 & IT returns
     • Latest 6 months’ bank statements where salary is credited
     • Latest 6 months’ bank statements of other accounts + accounts from which loans are being repaid
   • Self-Employed:
     • Last 2 years IT returns with all schedules, profit/loss, computation, etc.
     • Business continuity proof of 5 years
     • Last 6 months’ business bank statements
     • Latest 6 months’ bank statements of savings accounts + accounts from which loans are being repaid
     • Additional Documents for Partnership Firm: Partnership deed, individual financials for last 2 years
     • Additional Documents for Pvt. Ltd. Company: MOA, AOA
4. Other Documents
   • Marriage certificate, proof of additional funds for education, repayment track records, etc., may be required in some cases.
   • Additional documents beyond this checklist may be required in certain cases.

Things to consider when applying for InCred education loans

InCred’s Evaluation Process 

InCred looks at your potential future income, past grades, and your co-borrower’s ability to repay. They use this info to offer you a loan that fits your needs. So, if you have done well in academics and have chosen a good course, you’re more likely to get a loan approved with better terms.

Who Can Be Your Co-Borrower

You’ll need someone to co-sign your loan. This is usually a family member with a good credit history. Often, it’s parents, but siblings or spouses can help too. Remember, your co-borrower must have an Indian bank account.

How Much Can You Borrow

You can borrow enough to cover all your school costs. This includes tuition, housing, food, and even a laptop. However, if you get scholarships or grants, InCred will subtract that amount from your loan.

Interest Rates 

InCred’s interest rates depend on individual circumstances. They look at how well you’ve done academically in the past and how likely you are to repay. In fact, your credit history and any security you provide can affect your rate. The better your profile, the lower your interest rate will be.

Do You Need Collateral? 

You don’t always need to provide collateral, but it can help. If you offer something valuable, like property, you might get a better interest rate on your education loan, and could also be offered a higher amount if you need it. 

Repayment Options 

InCred tries to be flexible with repayments. For graduate school, you might not have to start full payments for up to 3 years (two years of program duration followed by one year of moratorium period). On the contrary, undergraduate loans usually start right away. However, you can always choose to pay earlier if you want.

Your Credit History 

InCred will check your credit history and your co-borrower’s history too. However, you don’t need to worry about having perfect credit scores. InCred considers several other factors before they make an approval decision on your education loan application.  

Fees and Charges 

There are no upfront fees to apply for the loan. Once your loan is provisionally approved, you will need to pay a loan processing/administration fee, which is usually around 1% – 1.5% of your loan amount. During your loan repayment journey, there can be other charges, which you must be aware of.

Here is a table outlining the extra charges to be aware of when applying for an InCred education loan:

Charge Description	Charges
Processing Fee	Up to 2% of the Loan Amount
Loan Cancellation Charges	Rs. 3,000 + applicable taxes
Swap Charges (EMI due date, Bank account change, Repayment mode change)	Rs. 1,000 + applicable taxes
Late EMI Payment Charges	Up to Rs 30 per month for every ₹1000 Principal Overdue on Pro rata basis
Part Prepayment Charges and Full Prepayment / Foreclosure Charges (Floating Rate Loans)	Nil
Part Prepayment Charges and Full Prepayment / Foreclosure Charges (Fixed Rate Loans)	4% during first 12 months and 2% thereafter
NACH/ PDC bounce/dishonor charges	Rs. 1,000 per instance
Switch Fee (From Floating rate to Fixed rate or vice versa)	1% on Principal Outstanding
Stamp Duty, Registration Charges, Taxes, and other related charges on the Loan Documents, Mortgage Documents, Notice of Intimation (NOI), Security Documents, etc.	At Actuals*
CERSAI/CKYC/NESL/ RoC Registration Charges etc.	At Actuals
Retrieval of copies of the documents	Nil
Other facility charges as applicable from time to time due to government regulation/incidental charges incurred by the lender	To be specified and communicated by InCred from time to time
Other Penal Charges for non-compliance of material obligations if any with prior communication	To be specified and communicated by InCred from time to time

*”At Actuals” means that the charges will be billed exactly as they are incurred, without any predetermined amount. In the context of loan documents, stamp duty, registration charges, taxes, and other related fees will be charged based on the actual cost of these services at the time they are needed.

Collateral rules for InCred education loans

Like most other banks and NBFCs, InCred offers education loans both with collateral and without collateral. Whichever type of loan you apply for, the application process remains the same. However, when you apply for a collateral loan, you will need to submit more documents, such as proof of ownership of collateral, proof of financial valuation of collateral, etc.

A collateral loan will also mean that you will get a better offer in terms of interest rate, the maximum loan amount you can borrow, and a higher chance of loan approval.

You can also offer more than one collateral for a loan if the value of one collateral asset isn’t as high as the loan amount.

Next, let’s explore the answers to some of the most common questions students have about an education loan from InCred.

Also Read: Collateral vs Non-Collateral Education Loan for Abroad Studies

Frequently asked questions