Common Myths About Education Loans Debunked for Delhi Students
Common Myths About Education Loans Debunked for Delhi Students
Blog Article
Introduction
Pursuing higher education is a dream for many students in Delhi, but the rising costs of tuition, accommodation, and study materials make education loans a necessity. However, many students and parents hesitate to apply for loans due to misconceptions and myths about the process.
At Quick Rashi, we specialize in helping students secure the best education loans with low interest rates, easy repayment plans, and hassle-free approvals. In this blog, we’ll debunk the most common myths about education loans so that you can make an informed decision without fear or doubt.
Myth 1: Education Loans Have Very High-Interest Rates
✅ Reality: Interest rates on education loans are competitive and vary based on the lender, loan amount, and borrower’s profile.
Many students believe that education loans have extremely high-interest rates, making repayment difficult. However, this is not true.
???? Public sector banks like SBI, PNB, and Bank of Baroda offer interest rates starting from 8% per annum.
???? Private banks and NBFCs offer loans with interest rates ranging from 9% to 14%, depending on the borrower's credit profile.
???? Government schemes like the Central Sector Interest Subsidy (CSIS) Scheme offer interest-free education loans during the moratorium period.
???? Tip: If you have a good academic record or a strong co-applicant, you can secure an education loan at the lowest possible interest rate.
Myth 2: You Must Have a High CIBIL Score to Get an Education Loan
✅ Reality: While a good CIBIL score helps, students can still get loans even with low or no credit history.
Since most students applying for education loans are young and do not have a credit history, banks primarily evaluate the credit score of the co-applicant (parents or guardians).
???? If your co-applicant has a strong CIBIL score (700+), getting a loan is easier.
???? If the CIBIL score is low, some NBFCs and private banks still offer education loans but at slightly higher interest rates.
???? Students from economically weaker sections (EWS) can apply for government education loan schemes that do not require high CIBIL scores.
???? Tip: At Quick Rashi, we help students with low or no CIBIL scores secure the best education loan options.
Myth 3: Education Loans Require Collateral in All Cases
✅ Reality: Many lenders offer unsecured loans (without collateral) for certain amounts and institutions.
Many students and parents worry that they must pledge property or assets to get an education loan. This is only true for loans exceeding ₹7.5 lakh in most cases.
???? Public sector banks require collateral for loans above ₹7.5 lakh, but loans below this amount are unsecured.
???? Private banks and NBFCs offer unsecured education loans up to ₹40 lakh for students admitted to reputed institutions.
???? Government-backed education loans and Delhi Government schemes also provide financial support without collateral.
???? Tip: If you do not have collateral, Quick Rashi can help you find lenders that offer unsecured education loans based on your academic profile and co-applicant’s financial status.
Myth 4: You Need to Start Repaying the Loan Immediately After Taking It
✅ Reality: Most education loans come with a moratorium period, allowing students to start repayment after course completion.
Many students assume they need to repay the loan while studying, which is not true.
???? Most banks and NBFCs offer a moratorium period (course duration + 6 to 12 months), during which no EMI payments are required.
???? Some lenders charge simple interest during the moratorium period, while others allow interest-free periods under government subsidy schemes.
???? Students can start repaying only after securing a job or earning a stable income.
???? Tip: At Quick Rashi, we help you find flexible repayment options so that you can focus on your studies without financial stress.
Myth 5: Education Loans Only Cover Tuition Fees
✅ Reality: Education loans can cover all study-related expenses, including living costs, books, travel, and more.
Many students think education loans only cover tuition fees, but in reality, they provide comprehensive financial support for:
✅ Tuition fees (college/university fees)
✅ Hostel and accommodation costs
✅ Books, study materials, and equipment
✅ Examination and library fees
✅ Travel expenses (for students studying abroad)
✅ Laptop or computer purchase (if required for the course)
???? Tip: Always check the loan agreement carefully to ensure all necessary expenses are covered.
Myth 6: If You Cannot Repay, You Will Be Blacklisted for Life
✅ Reality: Loan repayment terms are flexible, and banks offer solutions if a borrower faces difficulty in repaying.
Some students fear that if they cannot repay their loans on time, they will be blacklisted permanently. However, lenders provide various solutions for financial difficulties:
???? Extended repayment periods – Many lenders allow tenure extensions of up to 15 years.
???? Loan restructuring – Borrowers can negotiate new repayment terms based on their financial situation.
???? Government subsidies and relief programs – Some schemes help students from weaker financial backgrounds with repayment support.
???? Tip: If you are struggling with repayment, talk to your lender immediately to explore alternative repayment options.
Myth 7: Studying Abroad Loans Are Harder to Get
✅ Reality: Many banks and NBFCs offer study abroad loans with minimal paperwork.
Many students in Delhi hesitate to apply for education loans for international studies, thinking they are harder to get. In reality:
???? Public sector banks and NBFCs provide loans for studying abroad.
???? Unsecured loans up to ₹40 lakh are available for top-ranked universities.
???? Government schemes like Padho Pardesh and Dr. Ambedkar Interest Subsidy help students from minority and OBC/EWS backgrounds pursue education abroad.
???? Tip: At Quick Rashi, we assist students in securing quick study abroad loans with low-interest rates.
Why Choose Quick Rashi for Your Education Loan Needs?
At Quick Rashi, we help students in Delhi secure the best education loans with minimal hassle.
✅ Compare Multiple Lenders – We help you find the lowest interest rates.
✅ Loans Without Collateral – We assist in securing unsecured education loans.
✅ Fast Loan Approvals – Get loans approved in as little as 3-7 days.
✅ Support for Low CIBIL Scores – We connect you with lenders who accept weaker credit profiles.
✅ Customized Repayment Plans – Find the best flexible repayment options.
???? Need an education loan in Delhi? Contact Quick Rashi today! ????
???? Call us for a free consultation and secure your education loan hassle-free!
Conclusion
Education loans are a powerful tool to finance higher studies, but misconceptions prevent many students from taking advantage of them. By debunking these myths, students and parents can make informed decisions and secure the best financial support for their education.
At Quick Rashi, we make the education loan process simple, fast, and student-friendly. If you’re looking for affordable education financing in Delhi, get in touch with us today and take the first step toward your academic success! ???? Report this page