COMPARING EDUCATION LOAN INTEREST RATES: WHAT DELHI STUDENTS NEED TO KNOW

Comparing Education Loan Interest Rates: What Delhi Students Need to Know

Comparing Education Loan Interest Rates: What Delhi Students Need to Know

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Introduction


Pursuing higher education is a dream for many students in Delhi, but the rising cost of education—both in India and abroad—makes student loans a necessity. At Quick Rashi, we specialize in helping students secure the best education loans with low-interest rates and flexible repayment options.

Choosing the right education loan provider is crucial, as even a small difference in interest rates can have a significant impact on your total repayment amount. In this blog, we’ll compare different education loan interest rates, discuss factors affecting them, and help you make an informed decision.



1. Types of Education Loan Providers in Delhi


Before we dive into interest rates, let’s understand the types of institutions offering education loans:

A. Public Sector Banks


Government banks like SBI, PNB, Bank of Baroda, and Canara Bank offer education loans at relatively lower interest rates. They also provide benefits like subsidies for economically weaker sections under government schemes like the Central Sector Interest Subsidy (CSIS).

B. Private Banks


Private sector banks such as ICICI Bank, HDFC Bank, and Axis Bank provide education loans with faster approval processes but slightly higher interest rates compared to public banks.

C. Non-Banking Financial Companies (NBFCs)


NBFCs like HDFC Credila, Avanse, and InCred offer education loans, especially for students studying abroad. They usually have flexible terms but higher interest rates compared to banks.

D. Government-Sponsored Schemes


The Vidya Lakshmi Portal and NSP (National Scholarship Portal) provide access to government-backed education loans and scholarships for students in Delhi.



2. Education Loan Interest Rate Comparison (2025)


Interest rates vary based on the lender, loan amount, tenure, and applicant profile. Here’s a comparison of current education loan interest rates for students in Delhi:























































Bank/NBFC Interest Rate (Approx.) Processing Fee
State Bank of India (SBI) 8.50% – 10.25% Up to ₹10,000
Punjab copyright (PNB) 8.75% – 10.50% Nil to ₹10,000
Bank of Baroda 8.60% – 10.30% Up to 1% of loan amount
HDFC Bank 9.50% – 12.50% 1% of loan amount
ICICI Bank 9.75% – 13.50% 1% of loan amount
Axis Bank 9.90% – 13.00% 1% of loan amount
HDFC Credila (NBFC) 11.50% – 14.00% 1 – 2% of loan amount
Avanse (NBFC) 11.00% – 13.50% 1 – 2% of loan amount
InCred (NBFC) 11.75% – 14.50% 1 – 2% of loan amount

Note: Interest rates are subject to change and may vary based on loan amount, tenure, and creditworthiness of the borrower.




3. Factors Affecting Education Loan Interest Rates


Several factors determine the interest rates on education loans:

A. Loan Type (Secured vs. Unsecured)



  • Secured Loans (With Collateral): Lower interest rates (typically 8% – 10%) as they are backed by property, fixed deposits, or insurance policies.

  • Unsecured Loans (Without Collateral): Higher interest rates (9.5% – 14%) as they are riskier for lenders.


B. Loan Amount & Repayment Period



  • Higher loan amounts (especially for studying abroad) often come with higher interest rates.

  • Longer repayment periods result in more interest being paid over time.


C. Student’s Academic Profile & Course



  • Loans for top universities and professional courses (like MBA, Engineering, Medical) may have lower interest rates.

  • Students with a strong academic record may get better loan terms.


D. Co-Applicant’s Financial Profile



  • A parent or guardian’s income and CIBIL score play a major role in loan approval and interest rates.

  • A higher CIBIL score (750+) results in better loan offers.





4. How to Get the Lowest Interest Rate on an Education Loan?


If you’re looking for the best education loan with the lowest interest rate, here are some tips from Quick Rashi:

✅ Choose a Government Bank if Possible



  • Public sector banks usually have the lowest interest rates.

  • Check for government interest subsidy schemes like CSIS (for economically weaker students).


✅ Apply with a Co-Applicant Who Has a Good CIBIL Score



  • If your parent/guardian has a CIBIL score of 750+, lenders may offer a lower interest rate.


✅ Opt for a Secured Loan if Feasible



  • If you have property or fixed deposits, offering them as collateral can reduce your interest rate.


✅ Compare Interest Rates Before Applying



  • Use online loan comparison tools or consult Quick Rashi to find the best loan options.


✅ Check for Special Offers & Scholarships



  • Some banks offer discounted interest rates for female students.

  • Scholarships can help reduce the loan burden.





5. Why Choose Quick Rashi for Your Education Loan in Delhi?


At Quick Rashi, we simplify the process of getting an education loan with:

✅ Quick Loan Approval – We ensure hassle-free and fast loan processing.
✅ Lowest Interest Rates – We compare multiple banks and NBFCs to find the best rate for you.
✅ Expert Guidance – Our loan experts guide you through documentation and eligibility checks.
✅ No Hidden Charges – Transparent loan terms with no surprises.
✅ Loan for Study Abroad & India – Whether you’re going to IIT Delhi or Harvard, we help you get the right loan.



Conclusion


Choosing the right education loan can make a big difference in your financial future. Delhi students must compare interest rates, repayment terms, and processing fees before applying. Whether you need a loan for studies in India or abroad, Quick Rashi is here to help you get the best deal with minimal hassle.

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