Pursuing an MBA from a top-tier institution can be a transformative journey—but it’s rarely a cheap one. While the ambition to earn an MBA unites thousands of students, the steep cost often stands as a significant barrier. To make matters more difficult, many students—especially recent graduates—lack a formal credit history. Since traditional banks rely heavily on creditworthiness to approve loans, this leaves many aspiring MBA students without viable financing options.
Recognising these hurdles, a group of IIT Madras alumni launched Propelld, a fintech company designed to simplify education financing. The company claims to offer fast, collateral-free loans tailored for higher education, especially MBAs.
Limited access to education loans in India
In recent years, the demand for education loans in India has soared. RBI data for the last financial year shows that the education loan portfolio stood at Rs 96,847 crore, up from Rs 82,723 crore the year before—a 37% jump. A significant part of this demand comes from students pursuing professional courses like MBAs.
Despite this growing need, traditional education loans remain difficult to obtain. Banks typically require collateral for loans above Rs 7.5 lakh and interest rates range between 7.30% and 16%, depending on the lender and institution. Moreover, banks often ask for guarantors and can take weeks to process applications—delays that can leave students in limbo during critical admission windows.
Founded in 2017 by IIT Madras alumni Bibhu Prasad Das, Victor Senapaty, and Brijesh Samantaray, Propelld is on a mission to make education financing more accessible and less stressful. The company claims to offer quick, digital and collateral-free loans that are especially helpful for students lacking a credit history.
Students no longer need to mortgage family assets or hunt for guarantors to secure a loan. With a fully online process, most loans are approved within 24 hours, bypassing the red tape of traditional banks.
These innovations have earned Propelld a solid reputation among students. For instance, Bharti, an MBA student from Chandigarh University, shared, “My experience with Propelld was really good. The process was smooth and hassle-free. What I liked was the transparency they offered. The loan officer was cooperative and helped me through the entire process. The loan approval was quick, and the flexible repayment options made it much easier for me to manage my finances.”
Furthermore, the company asserts that in May 2024, its NBFC arm, Edgro Finance, raised over $25 million in debt funding from leading financial institutions such as Credit Saison India, AU Small Finance Bank, InCred Financial Services and Northern Arc Capital.
Through this capital boost, Propelld aims to expand its reach, making education financing even more accessible to deserving students.
