What are the education loan options available, and what are the differences between collateral and non-collateral loans?

Education loans in India are mainly of two types: secured (with collateral) and unsecured (without collateral).

- Secured loans require you to pledge an asset (like property or fixed deposit) as collateral. These usually offer a higher loan amount (up to ₹1.5 - 3 crore), lower interest rates (typically 8.65% - 10.5%/year), and longer repayment tenures (up to 15 years). Processing may take longer due to collateral checks.

- Unsecured loans do not require collateral. They generally have lower loan limits (up to ₹7.5 lakh in public banks, up to ₹1 crore in private banks), higher interest rates (10% - 14%/year), and shorter repayment periods (7 - 10 years). Processing is faster with less paperwork.

The best option depends on your financial situation and whether you can provide collateral. If you need help choosing, your LeapScholar counsellor can guide you further.