Propelld: Revolutionizing Student Loans with ROI-Based Education Financing
In most Indian families, the three largest expenses are Education, Health, and Weddings. Yet, while home loans and consumer durables have reached high penetration, education loans remain a massive "credit gap" for the middle class. Brijesh Samantaray, the Co-founder of Propelld, is on a mission to fix this. By moving away from the rigid, document-heavy approach of traditional banks and focusing on the actual **Return on Investment (ROI)** of educational courses, Propelld has disbursed over ₹1,000 crores in loans, empowering thousands of students to access quality education without the burden of upfront costs.
Samantaray's journey is a testament to first-generation entrepreneurial persistence. An IIT graduate who left a stable career at HSBC, he faced two failed startups before finally striking gold with Propelld in 2017. Alongside co-founders Victor Senapaty and Bibhu Prasad Das, he has built one of India's largest domestic education lending firms, backed by a $35 million Series B from top-tier private equity investors. Their secret? A proprietary underwriting model that bets on the Institute's outcomes rather than just the student's current lack of credit history.
The Bank Gap in Bharat
Traditional banks typically only cater to the top 300-400 institutions (IITs, IIMs). For the millions of students in mid-tier private colleges, vocational courses, or test prep centers like Akash and Allen, bank loans are nearly impossible to secure due to high turnaround times and a lack of documented parent income.
The Three Pillars of Education Lending
Propelld strategically divides the massive education market into three distinct segments, each with its own unique financing needs:
- Online Skilling (Upgrad, Simplilearn): Niche, fast-growing courses where the average ticket size is ~₹1 lakh. Speed and digital-first onboarding are critical here.
- Offline Coaching (Akash, Allen): Entrance exam preparation where fees have skyrocketed to ₹1.5 - ₹3 lakh per year (including hostels). Propelld brings affordability through 12-month zero-cost EMIs.
- Higher Education (MBAs, B.Techs): The largest market, where students in private colleges often face a complete lack of credit options. Propelld targets these students by evaluating the employability of the specific degree.
The Secret Sauce: Underwriting the Institute
One of the "untold secrets" Samantaray reveals is that a student's credit behavior is directly proportional to the quality of service they receive from the institute. "If a student is getting the service promised by the institute, he will definitely pay you back," Samantaray explains. "If he is not happy with the service, no matter how creditworthy he is, it's difficult for him to pay back."
This insight led to Propelld's Institute-Centric Underwriting. Instead of just looking at the student, they do a deep dive into the school's placement record and course ROI. If a ₹6-8 lakh MBA provides the same salary outcomes as a ₹15 lakh MBA, Propelld will aggressively fund the more "efficient" course. This approach has led to significantly higher approval rates compared to banks, while maintaining a healthy loan book.
"Banks usually give loans because the manager knows the father. We give loans because we understand the ROI of the course. We underwrite the future employability of the student, not just the past documentation of the parent."
Solving for the "Undocumented" Parent
A massive chunk of Propelld's applicants are children of farmers, shopkeepers, or small-time contractors. These parents often have the cash flow to support their children but lack the IT returns or salary slips that banks demand. Propelld's tech platform allows counselors to act as loan assistants, helping these parents complete the process at the center within minutes.
By combining an estimate of the parent's undocumented cash flow with the student's academic sincerity, Propelld creates a balanced risk model. "We ask: if the student doesn't get a job for a year, can the parents support him? And what is the probability he'll get a job within that year?" says Samantaray. This "Phygital" fulfillment model, reminiscent of what Bajaj Finance did for consumer durables, has allowed Propelld to scale across 45 cities.
Propelld: Scale and Impact (Jan 2026)
- Total Disbursement: Over ₹1,000 Crores in the last year.
- Funding: $35 Million Series B raised for sustainable growth.
- Market Reach: Active in 40-45 cities across India.
- Interest Rates: Competitive range of 12-15% with superior approval rates.
- Philosophy: Sustainable category creation over "rosy" short-term growth.
Founder's Wisdom: The 15-Year Marathon
Transitioning from a corporate role at HSBC to a serial entrepreneur taught Brijesh Samantaray that there are no shortcuts to building a landmark institution. Drawing inspiration from his family legacy—his grandfather in agriculture and his father as an engineer—he views business through the lens of long-term impact.
"Entrepreneurship is not as rosy as people see," he warns. "It takes 10 to 15 years minimum to build a sustainable company. You need patience and courage to keep doing the same thing through the ups and downs." After shutting down two companies before Propelld, he emphasizes the importance of choosing co-founders who share the same "impact angle" and persistence.
Brijesh's Guide for Student Borrowers
Evaluate the ROI: Don't just look at the brand name of the college. Look at the ratio of the fees to the average starting salary.
Embrace Sincerity: In the student loan ecosystem, your academic sincerity is your credit score. Sincere students are statistically more likely to maintain good credit behavior.
Look for Partners: Choose a lender that understands your specific educational journey, whether it's coaching, skilling, or a degree.
The Future: Becoming the Category Leader
As education expenses continue to rise at a high rate year-over-year, Propelld is positioning itself as the Category Creator for education financing in Bharat. With a well-capitalized balance sheet and a focus on mbas and B.Techs, the goal is to ensure that no deserving student is denied an opportunity due to a lack of traditional documentation.
For Brijesh Samantaray, the biggest reward isn't the funding round—it's the legacy of creating something that lasts for 100 years. As Propelld continues its mission, it stands as a prime example of how Indian Fintech can solve deep-rooted societal problems through data, empathy, and relentless execution.
About the Guest
Brijesh Samantaray is the Co-founder of Propelld. An MBA graduate from IIT Madras, Brijesh worked in the risk domain at HSBC before embarking on his entrepreneurial journey. A first-generation entrepreneur, he previously co-founded a hyperlocal delivery venture and a fashion technology startup. Since 2017, he has been instrumental in scaling Propelld into a leading education-focused fintech firm, focusing on risk management, institute partnerships, and sustainable growth. He is a passionate advocate for financial inclusion and impact-driven business models.
Propelld is a Bengaluru-based fintech company specializing in customized education financing solutions. By leveraging a unique underwriting model that evaluates institute outcomes and student potential, Propelld provides accessible, reliable, and fast Education Loans for online skilling, offline coaching, and higher education. The company is committed to bridging the credit gap in India's education sector and empowering the next generation of Indian professionals.