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This article can be useful to you if you live in Delhi and want to pursue your further education in India or elsewhere. Typically, students need up to 15 lakhs to study in India and 45 lakhs to study overseas. Your interest rate for financing your education can range from 8.30% to 13.5%, depending on the lender you select.
Bank Name | Loan Amount | Processing Fee |
---|---|---|
State Bank of India |
Up to INR 50 lakh |
Nil - INR 10,000+Tax |
Axis Bank |
Up to INR 75 lakh (unsecured) |
Up to 2% of the amount+GST |
ICICI Bank |
Up to INR 1 crore |
Up to 2% of the amount +GST |
IDFC First |
Up to INR 30 lakh (unsecured) |
Up to 1.5% of the amount |
UBI |
Up to INR 1.5 cr (secured) Up to INR 40 lakh (unsecured) |
INR 5000 (refundable) |
HDFC Credila |
Up to INR 20 lakh |
1% + GST |
Auxilo |
Up to INR 65 lakh |
Up to 2% of the sanctioned loan amount |
Avanse |
Up to INR 75 lakh |
0.5% - 1.5% |
InCred |
Up to INR 60 lakh |
0.75% - 1% of the sanctioned loan amount |
BOB |
INR 7.5 lakh - INR 1.5 cr |
1% (max. INR 10,000) |
Check Your Education Loan Eligibility
Bank Name | Loan Amount | Processing Fee |
---|---|---|
Up to INR 1.5 cr with collateral |
INR 10,000 |
|
Prime A - INR 50 lakh Prime B - INR 40 lakh |
0.75% on the sanctioned loan amount |
|
Up to INR 2 cr (secured) Up to INR 1 cr (unsecured) |
Up to 2% + GST |
|
Up to INR 50 lakh without collateral |
Up to 1.5% of the sanctioned loan amount |
|
Up to INR 1.5 cr (secured) Up to INR 40 lakh (unsecured) |
INR 5000 |
|
Up to INR 65 lakh |
0.5% - 1% |
|
Up to INR 75 lakh |
1% - 1.5% |
|
Up to INR 65 lakh |
0.5% - 1.5% |
|
Up to INR 60 lakh |
1% - 2% |
|
Up to 100,000 USD |
5% (adjusted in the loan amount) |
|
Up to 100% cost to study |
Up to 5%, added to loan amount |
|
Up to 1.5 cr with collateral |
INR 10,000 + GST |
All paperwork needs to be self-attested.
If co-applicant salaried:
If you are self-employed:
If you intend to apply for a secured loan, you will also need to submit certain documentation as collateral for the property you will be using as security for the loan. The following list includes the collateral documents needed for a Delhi education loan.
There are a few requirements and restrictions on acceptable collateral for secured education loans. The list of collateral that is typically accepted in Delhi for these loans is shown below.
Note:
Check Your Education Loan Eligibility
Bank Name | Interest Rate |
---|---|
State Bank of India |
Starts from 8.30% (0.60% Business strategy discount, 0.50% - for female students and 0.50% - Rinn Raksha) |
Axis Bank |
Starts from 11.5% |
ICICI Bank |
Starts from 10.5% -11% |
IDFC First |
Starts from 8.5% - 10% |
UBI |
Starts from 11.15% |
HDFC Credila |
Starts from 10.25% - 12.75% |
Auxilo |
Starts from 11% - 13.5% |
Avanse |
Starts from 11% - 13.5% |
InCred |
Starts from 11% - 13.5% |
BOB |
Starts from 8.85% |
Bank Name | Interest Rate |
---|---|
State Bank of India |
Starts from 10.15% (0.5% concession in interest for female students and 0.5% - Rinn Raksha ) |
Axis |
9.99% - 12.5% |
ICICI |
10.95% - 12.5% |
IDFC First |
9.5%-11% (secured) 10.75%-13% (unsecured) |
UBI |
9.25% - 9.75% |
HDFC Credila |
10.25% - 12.75% |
Avanse |
10.75% - 13% |
Auxilo |
11.5% - 13% |
InCred |
11.85% - 13.25% |
MPower |
12.99% - 15.99% |
Prodigy |
11.5% - 13.5% |
BOB |
9.7% (fixed) (0.20% concession in interest for female applicants of non-premier institutes) |
Calculate your Education Loan EMI
An education loan pays for a student's varied academic needs when they relocate overseas or attempt to continue their studies in India. The following costs are covered by the education loans that Delhi's lenders offer.
It is critical to thoroughly examine the loan terms and conditions to determine what expenses are covered in education loan. The lender may have certain rules or limits regarding how the loan might be used.
Depending on the lender granting your loan, the moratorium period for an education loan in the majority of Delhi-based public, private, and NBFC banks lasts for the duration of the course plus an additional six to one year. Every bank has different loan repayment terms. Simple interest is not due during the moratorium period at public banks. Compound interest is assessed during the moratorium period in private banks and NBFCs. Partial interest payment during the moratorium period is another option offered by the majority of NBFCs.
The amount that must be paid by the applicant or student in order to receive an education loan is known as the loan margin. In general, the loan margin in private banks ranges from 5% to 10%, while it is often around 10% in public banks.
For instance, if a bank charges a 10% loan margin and the student wants to borrow 50 lakhs, they will need to come up with an additional 5 lakhs before the loan can be approved.
When a loan is secured education loan with collateral, the collateral margin is determined. The amount determined using the collateral offered as security is known as the collateral margin. The bank uses the collateral or property given for the secured loan to recover the amount in circumstances where the student is unable to repay the loan.
Students who approach banks or lenders directly for an education loan are faced with rejection. A few of the particular reasons why students in Delhi are denied education loans are listed below.
Low CIBIL scores: Although banks have varying minimum standards, a score of 685 or above is typically seen as satisfactory. State Bank of India (SBI), on the other hand, has less stringent requirements and would accept scores as low as 591. The loan application will probably be rejected if the co-applicants' score is insufficient to meet the bank's requirements.
Bad academic standing: Having a history of bad academic standing can make it more difficult to have an education loan accepted when applying. This could be seen by banks and other financial institutions as a sign of a person's capacity to finish their education, which would make them less inclined to approve the loan.
The chosen nation for further education: Third-world nations are typically not accepted by banks as study abroad destinations. This can be the result of worries regarding the standard of instruction or the likelihood of finding work following graduation. Before applying for an education loan, people should make sure they are aware of the requirements and guidelines set forth by the lending institutions regarding eligible study abroad locations.
Higher education path chosen: Banks typically give preference to students pursuing degrees in STEM subjects (science, technology, engineering, and mathematics) over those pursuing other degrees. This is due to the fact that those who have studied in these subjects are thought to have a better chance of finding work in the sector.
Inadequate documentation: The bank cannot begin processing your loan for an overseas education if you do not have the necessary paperwork. For an education loan to study abroad, the appropriate paperwork and evidence of income are therefore needed.
Check Your Education Loan Eligibility
The maximum loan amount varies depending on the bank or financial institution. For studies within India, it ranges from INR 20 lakh to INR 1.5 crore, and for studies abroad, it can go up to INR 2 crore with collateral.
Interest rates for education loans in Delhi start from as low as 8.30% and can go up to 13.5%, depending on the bank and whether the loan is secured or unsecured.
Yes, processing fees vary across different banks and financial institutions. Some banks offer nil processing fees, while others may charge up to 2% of the loan amount plus GST.
Yes, several banks and financial institutions offer unsecured education loans up to a certain limit. For example, Axis Bank offers up to INR 75 lakh unsecured loans, while for higher amounts, collateral may be required.
Repayment terms vary, but typically, the repayment period begins after the completion of the course plus a moratorium period which can range from six months to one year. Interest may be simple or compound during the moratorium period, depending on the lender.
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