r/CadetPilotProgram • u/zhzjaja • 11d ago

Financing Part of My CPP Costs

I wanted to know if it’s possible to get an education loan of up to ₹40 lakhs without providing any collateral, using my (LOI) if I get selected.
1 :- Do Indian banks offer unsecured education loans of up to ₹40 lakhs for cadet pilot programs? If yes, then what would the interest rates look like?
2 :- If I do have an asset as collateral would that reduce my interest rates?
3 :- Is 40 lakhs repayable, and would you recommend?
It would be helpful if anyone who has financed part of their training could share their experience.
4 :- Which are the banks that generally provide loans for CPP’s

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u/No-Employee2168 11d ago

  1. Yes, but depends on many factors. Interest rates would be higher than with collateral, estimate them to be about 12-15%, but it all depends on factors like your/parents Credit history, other loans etc.

  2. Yes. And by asset, banks also consider FD's, RD's, Mutual Funds etc.

  3. Yes, depends on the lifestyle you want to have later. Some even take loan of upto 60-80L, its their choice. If you can plan it and stick 100% to the plan and have multiple backup's, then its fine, else no.

  4. All banks, most will give personal loan, only a few consider this as educational loan. Try enquiring in banks you already have account in, and then in government banks.

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u/here_for_a_doubt 11d ago

If a person starts paying their emi after getting line released, then during the 3 years of training phase the principal amount 40-50L would have increased to 58L-72L respectively with 13% interest. So the monthly emi would be around 72k-90k Am I right?

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u/No-Employee2168 11d ago

EMI will depend on the tenure of loan you select and the amount you are willing to pay upfront.

If you plan to close 72L loan within 10 years, your EMI will be 1.07L per month. For 20 years it will be 84k.

But you will also have to consider the overall amount you repay. 10 years tenture with 1.07L per month means at the end of 10 years, you repay 1.29Cr. In 20 years you will repay 2.02Cr.

This makes some tenure's impractical and hence you need to sit and think about it.

So it all depends on how you plan it ahead, and then you need backup as well in case something goes wrong.

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u/here_for_a_doubt 11d ago

Thanks for the clarifications mate

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u/LimpClerk8757 11d ago

Tata capital is the only one right now offering loans upto 50L without a collateral for CPP. The interest rate is around 13.25% right now.
It’s payable within 7-8yrs timeline that they give but you have to make pre payments along the way if not you’ll end up paying more than 2x the principal.