Education Loan in Delhi

✓ Secured and Unsecured Education Loan

✓ At starting Interest rate of 8.30% P.A.

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Table of content

Best banks for education loans in Delhi
Education Loan Interest rate in Delhi
Other Education Loan features offered by Banks or NBFCs in Delhi
Documents required for availing an Education Loan in Delhi
Common reasons for Education Loan rejection in Delhi
Why Choose WeMakeScholars for an Education Loan in Delhi?
The Repayment Plan For Education Loans In Delhi
Education Loan Subsidy Schemes Applicable To Students From Delhi
Institutions For Higher Education in Delhi
FAQ's
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If you are someone looking to pursue your higher studies in India or Abroad and live in Delhi, this article could be of help to you. Students generally require up to 15 Lakhs for studies in India and 45 Lakhs for Studying Abroad. Depending on the lender you choose to finance your education the interest rate ranges from 8.30% to 13.5%.

Best banks for education loans in Delhi

For Studies in India

The table below specifies the scheme name, loan amount, and the processing fee offered by various banks in Delhi for higher education in India

Bank Name	Scheme Name	Loan amount- Collateral Required	Processing fee
State Bank of India	SBI Scholar Loan Scheme	Upto 1.5 crores secured	10K + GST
Bank of Baroda	Baroda Education Loan to Students of Premier Institutions	Upto 1.5 Crores secured	10K + GST
Union Bank of India	Union Bank India Education Loan	Upto 2 Crores with collateral	No processing fee
Karur Vysya bank	Education Loan Scheme	Upto 1.5 Crores with collateral	10K + GST
Auxilo	Auxilo education loan for studying in India	Upto 60 Lacs	1-2% of the loan amount
Avanse	Education loan for studying in India	Upto 60 Lacs	1-2% of the loan amount
Incred	Education loan for studying in India	Upto 60 Lacs	1-2% of the loan amount
Axis	Education loan for study in India	Upto 40 Lacs unsecured	1-2% of the loan amount
ICICI	Education loan for study in India	Upto 50 Lacs unsecured	1-2% of the loan amount
IDFC First Bank	Education loan for study in India	Upto 35 Lacsunsecured	1-2% of the loan amount

For Foreign Studies

The scheme name, loan amount, and processing fee offered by various banks in Delhi for financing higher education being pursued abroad are listed in the table provided below.

Bank Name	Scheme Name	Loan amount- Collateral Required	Processing fee
State Bank of India	SBI Scholar Loan Scheme	Upto 1.5 Crores with collateral	10K + GST
Bank of Baroda	Baroda Scholar	Upto 1.5 Crores with collateral	10K + GST
Karur Vysya Bank	Education Loan Scheme	Upto 1.5 Crores with collateral	10K + GST
Union Bank of India	Union Bank Abroad Education Loan	Upto 1.5 Crores with collateral	Zero
Auxilo	Education loan for studying abroad	Upto 60 Lacs for studying abroad	1-2% of the loan amount
Avanse	Education loan for studying abroad	Upto 60 Lacs for studying abroad	1-2% of the loan amount
Incred	Education loan for studying abroad	Upto 60 Lacs for studying abroad	1-2% of the loan amount
Axis	Education loan for studying abroad	Upto 40 Lacs unsecured	1-2% of the loan amount
ICICI	Education loan for studying abroad	Upto 50 Lacs unsecured	1-2% of the loan amount
IDFC First Bank	Education loan for studying abroad	Upto 50 Lacs unsecured	1-2% of the loan amount

Education Loan Interest rate in Delhi

The interest rates on education loans in Gujarat are also flexible depending on the particular bank and whether the loan is to be taken for local or overseas education. Interest rates are often competitive with further discounts for female students, as well as for those who choose certain repayment options. The subsequent subtopics offer a comprehensive comparison of the interest rates offered by different banks in Gujarat as well as any available discount to aid students and their families in choosing a suitable loan provider for their education expenses.

For studies in India

The interest rates offered by banks in Delhi for higher education in India start from 8.30%

Bank Name	Interest rate	Interest rate concession
State Bank of India	Starts from 8.30%	0.50% - for female students 0.50% - Rinn Raksha
Bank of Baroda	Starts from 10.60%	Upto 2% on going through with WeMakeScholars
Union Bank of India	Starts from 11.15%	0.5% for female students 1% if the SI is paid in full
Karur Vysya bank	Starts from 10%	Upto 2% on going through with WeMakeScholars
Auxilo	Starts from 11%	Upto 2% on going through with WeMakeScholars
Avanse	Starts from 11%	Upto 2% on going through with WeMakeScholars
Incred	Starts from 11%	Upto 2% on going through with WeMakeScholars
Axis	Starts from 11.5%	Upto 2% on going through with WeMakeScholars
ICICI	Starts from 10.5%	Upto 2% on going through with WeMakeScholars
IDFC First Bank	Starts from 8.5%	Upto 2% on going through with WeMakeScholars

For Foreign Studies

The interest rate offered by banks based in Delhi for higher education overseas starts from 10%.

Bank Name	Interest rate	Interest rate concession
State Bank of India	Starts from 10.90%	0.50% - for female students, 0.50% - Rinn Raksha
Bank of Baroda	Starts from 10.60%	Upto 2% on going through with WeMakeScholars
Union Bank of India	Starts from 11.15%	0.5% for female students 1% if the SI is paid in full
Karur Vysya bank	Starts from 10%	Upto 2% on going through with WeMakeScholars
Auxilo	Starts from 11%	Upto 2% on going through with WeMakeScholars
Avanse	Starts from 11%	Upto 2% on going through with WeMakeScholars
Incred	Starts from 11%	Upto 2% on going through with WeMakeScholars
Axis	Starts from 11.5%	Upto 2% on going through with WeMakeScholars
ICICI	Starts from 10.5%	Upto 2% on going through with WeMakeScholars
IDFC First Bank	Starts from 8.5%	Upto 2% on going through with WeMakeScholars

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Other Education Loan features offered by Banks or NBFCs in Delhi

Expenses covered

An education loan funds various academic requirements of a student moving abroad or trying to pursue their education in India. The education loans provided by the lenders in Delhi cover the following expenses.

College fees
The cost of accommodation
Examination charges
Library charges
Laboratory fees
Price of Books
Airfare (For abroad education)
The premium for the applicant's insurance (For abroad education)

Moratorium Period

In most public banks, private banks, and NBFCs based in the city of Delhi, the moratorium period lasts for a course duration plus 6 months to 1 year depending on the lender providing your loan. The conditions of loan repayment differ in every bank. Public banks do not require you to pay simple interest during the moratorium period. In private banks and NBFCs compound interest is charged during the moratorium period. Most NBFCs also provide an option of partial interest payment during the moratorium period.

Loan Margin

The loan margin charged for an education loan is the amount that has to be paid by the student or the applicant in order to avail of the loan. Generally, the loan margin in public banks is around 10% and 5% to 10% in private banks respectively.

For example, if the loan margin charged by a bank is around 10% then and the loan amount is 50 Lakhs, then the student would have to arrange 5 Lakhs in order for the loan to get sanctioned.

Collateral Margin

The collateral margin is calculated in the case of a secured or collateralized loan. The collateral margin is the amount calculated on the basis of the collateral provided as security. In cases where the student is unable to pay back the loan amount, the bank reclaims the amount by utilizing the property or collateral provided for the secured loan.

Documents required for availing an Education Loan in Delhi

Education loan in Delhi requires several documents together to facilitate the processing of the education loan. The student applicant and the co-applicant will need to submit personal information, financial information, and academic documents, as well as collateral documents, if applicable for a secured loan. These are used to authenticate the identity of the parties, financial position, and security for the loan. This section focuses on the specifics of the documents necessary for different stages of the loan application process:

Parameter	Details
Basic documents for Applicant (student) and co-applicant and Guarantor	The loan application form that has been filled out, including the applicant's details and two passport-style photos, is necessary. Proof of residence: that is accepted includes documents such as a passport, voter ID card, utility bills, ration card, bank statement, or Aadhaar card. If the applicant's permanent and current addresses are different, they must provide two forms of proof of residence. Proof of identity: PAN card and passport A statement of personal assets and liabilities in the format specified by the branch professional is needed. The applicant needs to provide the most recent half-year bank statement, whether it's a personal or salary account. If there is a co-applicant, their credits must be shown and if they are self-employed they must provide a year's worth of company transactions. *The documents must be self-attested*
Applicant academic documents	Proof of enrollment in the program that confirms the total duration of the course is required. Fee structure of the course (If available, i20 for USA) Scorecard of GRE/ GMAT/ IELTS University Ranking printout form Mark sheets and certificates - 10th, 12th, and degree levels.
Financial Co-applicant Income documents	If Salaried: The most recent pay slips for the last 3 months are required. Form 16 for the past 2 years is needed. A copy of the employer's ID card is required. The last two years' Income Tax Return is required. If Self-employed: The past three years' Income Tax Return is needed. If the applicant is a self-employed businessman, they need to provide the balance sheet of their Profit and Loss account for the past 3 years. Documentary evidence of the company/business address is required.
Other Documents	A cheque for a processing fee of Rs. 11,800 is needed. A letter indicating that the co-applicant will be responsible for any expenses not covered by the loan is required. Additionally, cheques for attorney and evaluator fees may be required, if the bank handles the legal and valuation process. An affidavit from the owner of the collateral property, on an Rs. 100 stamp paper, is needed. If there are multiple owners of the property, an affidavit is required from each of them.
Additional docs	Statements of any outstanding loans from the previous year are required. Receipts for any payments made in advance are needed. A Proforma invoice for the trip, laptop, or any other item for which a loan is requested is needed. If applicable, a letter indicating the unavailability of the co-applicant's Income Tax Return is required. A letter explaining any gaps in your profile, if any, is needed.

Collateral documents required for a secured education loan in Delhi

If you are planning to go for a secured loan, you would also be required to provide some collateral documents for the property you are providing for the said loan. The collateral documents required for an education loan in Delhi are mentioned below.

1. The title deed of the pledged property is required.

2. A registered will, sale contract, or gift deed is required.

3. The original receipt for the registration of the aforementioned agreement is needed.

4. A letter of allocation from the local government or an approved government agency, such as DDA is required.

5. A 30-year-old document, such as an EC or a chain of sale deeds, that establishes the title of the property is needed. This document shows a record of who acquired the property in the 30 years prior. If the property has been held for more than 30 years, the preceding sale paperwork will suffice.

6. Current property tax and power bills from the same address are required.

Acceptable collaterals in Delhi for education loans

For a secured education there are a few conditions and limitations to the acceptable collateral, Below mentioned is the list of collateral generally accepted in Delhi for secured education loans.

A house, flat, or non-agricultural land with defined boundaries is needed.
Properties used for commercial purposes can be pledged.
Properties used for agricultural purposes can be used.
Fixed deposits, insurance policies, and government bonds are also accepted.

Note

Properties for which power of attorney is required cannot be considered for loans.
Properties or homes on a lease cannot be accepted as collateral for loans.
For DDA apartments, a conveyance deed and an allotment letter from DDA are required.
Properties located within Lal Dora (Red Line) are not accepted.

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Common reasons for Education Loan rejection in Delhi

When banks or lenders have been directly approached for an education loan, the students are met with rejection. Below mentioned are a few of the specific reasons students face rejection for an education loan in Delhi.

Poor CIBIL scores: Banks have different minimum requirements for CIBIL scores, but generally, a score of 685 or higher is considered good. However, the State Bank of India (SBI) has a lower requirement, accepting scores as low as 591. If the co-applicants score falls short of the bank's requirements, the loan application will likely be denied.
Poor academic scores: When applying for an education loan, having poor academic performance in the past can negatively impact the chances of getting the loan approved. Banks and financial institutions may view this as an indication of an individual's ability to successfully complete their education, and as a result, may be less likely to approve the loan.
Chosen country for higher studies: Banks generally do not accept third-world countries as a destination for higher education. This may be due to concerns about the quality of education, or the ability to secure employment after graduation. It is important for individuals to research the lending institutions' criteria and policies regarding acceptable countries of study before applying for an education loan.
Chosen course for higher studies: Banks tend to favor students who have chosen to pursue higher education in fields related to science, technology, engineering, and mathematics (STEM) over those studying in other areas. This is because individuals who have studied in these fields are considered to have a higher likelihood of obtaining employment in the industry.
Insufficient documentation: Without the proper documentation banks cannot start your abroad education loan process. Hence, proper documentation and income proofs are required for an education loan to study overseas.

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Why Choose WeMakeScholars for an Education Loan in Delhi?

Direct engagement with lenders - You can reach out to the lender directly by obtaining the contact number of the executive handling your case from the lender's team.
Technologically advanced - WeMakeScholars allows you to easily apply for, track, and manage your education loan from the convenience of your own home throughout the entire process.
The cashback offered - When you apply for your study abroad education loan through WeMakeScholars, you will receive a cashback of up to INR 3000 for multiple disbursements.
Negotiation - The WMS team will strive to secure the best return on investment for you by negotiating with lenders on your behalf, while also ensuring that you are charged a fair price for the entire process, including legal fees and other expenses.

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The Repayment Plan For Education Loans In Delhi

An example of your amortization plan could be if you obtained a 55.5 lakhs unsecured education loan from Delhi at an interest rate of 11.5% and with a 6-month grace period and a 10-year repayment period.

Monthly EMI: 94,379
Total payment: 1,13,25,489
Total payable interest: 57,75,489

Repayment	EMI	Interest portion	Principal portion	Loan Outstanding
End of 1st year	94379	61007	33372	6332610
End of 2nd year	94379	56961	37418	5906306
End of 3rd year	94379	52423	41956	5428309
End of 4th year	94379	47336	47043	4892349
End of 5th year	94379	41631	52748	4291400
End of 6th year	94379	35235	59144	3617580
End of 7th year	94379	28064	66316	2862053
End of 8th year	94379	20022	74357	2014911
End of 9th year	94379	11006	83373	1065046
End of 10th year	94379	896	93483	0

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Education Loan Subsidy Schemes Applicable To Students From Delhi

There are several education loan subsidy schemes for the students from Delhi especially the minority groups and the economically weak section of the society. These schemes are aimed at helping students and working professionals and giving them necessary funds to continue their education without any financial problems and, to help education loan takers, there is an interest subsidy for education loans. The subsequent sections briefly discuss the major subsidy schemes that are available for students from Delhi, the conditions for receiving the subsidy, and the advantages of its receipt provided for students and their families.

Padho Pardesh Scheme

Eligibility:

The student being considered for the scholarship should belong to a minority faith group, such as Muslim, Christian, Sikh, Buddhist, Jain, or Zoroastrian, and has a yearly household income of fewer than 600,000 rupees.

Note: The Padho Pardesh Scheme has been terminated on April 1, 2022. However, individuals who were already benefiting from the scheme as of March 31, 2022, will continue to receive subsidies on the interest of their loans during the loan's repayment period and any agreed-upon period of deferment.

Central Scheme for Interest Subsidy for Economically Weaker Sections

Eligibility:

The student being considered for the scholarship should have a yearly household income of fewer than 450,000 rupees.

Dr. Ambedkar Central Sector Scheme

Eligibility:

The student being considered for the scholarship should belong from a financially disadvantaged background (EBC), and the total yearly income of their household is less than 800,000 rupees.
The person being considered for the position is from the Other Backward Class (OBC), and the annual income of their household is less than 800,000 rupees.

Institutions For Higher Education in Delhi

There are many reputable institutions in Delhi that offer a wide range of courses, including engineering, medicine, and arts. Some of the top institutions in the area include:

Indian Institute of Technology (IIT), Delhi
All India Institute of Medical Sciences (AIIMS)
Jawaharlal Nehru University (JNU)
Delhi University (DU)
Indian Institute of Management (IIM), Delhi
Indian Institute of Foreign Trade (IIFT), Delhi
NLU Delhi
Amity University
IIIT Delhi
ILI Delhi

These institutions are known for their excellent academic programs, highly qualified faculty, and state-of-the-art facilities. They are often considered among the best in the country and attract students from all over India and abroad. They offer a wide range of undergraduate, postgraduate, and doctoral programs in various disciplines. These institutions are also known for their research work and have produced some of the most renowned scholars in the country.

This video includes topics such as the qualifications needed, the different kinds of loans available, how much can be borrowed, the interest rates and the necessary paperwork for the application process. Additionally, this video covers the steps involved in choosing a lender, as well as exploring the government initiatives related to education loans. Watch this video to get a to know the A to Z of getting an abroad education loan

FAQs:

How to get an education loan in Delhi?

Depending on the kind of education loan you are going for, you need to go to a lender of your preference. Then, you need to choose a loan product offered by the lender, fill in the application form, and submit the required documents asked by the branch. You can skip all the hassle and apply for the loan from the comfort of your home through WeMakescholars.
What is New Delhi's upper age limit for receiving an education loan?

The general age range of an applicant must lie somewhere between 18-35 years for public banks, whereas age doesn’t matter in the case of private banks. NBFCs generally do not accept applicants over the age of 27 for education loans, but it can be negotiated in some cases. Reach out to us by requesting a callback to know more.
In New Delhi, who is eligible to be a co-borrower for an education loan?

The applicant’s Father, Mother, Siblings, or Spouse can be a co-applicant for your education loan. Your legal guardian can also be your co-applicant in case the parents are not available.
What is the eligibility for an education loan in New Delhi?

The general eligibility criteria for the applicant to get an education loan in New Delhi is that the applicant must be 18 years or older, must be a citizen of India, and must have received admission to the preferred university through a merit-based examination.
Is a co-applicant for the student loan required in New Delhi?

Yes, having a co-applicant is mandatory to get an education loan in New Delhi. In cases where the co-applicant doesn’t have a proper income source, a financial co-applicant may be required. But if you meet the requirements for EliteScholars (an initiative by WeMakeScholars) You can apply for an education loan without a financial co-applicant.

Our Education Loan team will help you with any questions

Naresh Kumar
WeMakeScholars- supported by IT Ministry, Govt. of India.

Published: 18 Jan, 2023 | Updated: 09 Aug, 2024