How Your Education Loan Could be Impacted by Education Loan Interest Rates
Abroad or within India, if you’re planning to study, there’s no denying that an education loan could help ease the financial load. However, one factor that must be kept in mind is the steadily growing interest rates.
Just 1% difference across education loan interest rates can translate to thousands of added rupees over the loan repayment period. Therefore, interest rates are extremely important for every student and parent planning forward.
Like we at ZestDhan intend to make every step of your loan journey as seamless as possible, let’s make things clearer with an outline that is easy to digest.
What is an Education Loan Interest Rate?
Simply put an education loan interest rate is the financial fee charged by the lender for providing the funds to a student in need. It is calculated against the entire sum of the loan and incorporated into one’s EMIs (monthly payment).
The two primary classifications are:
• Fixed Interest Rate: A predetermined rate that remains stagnant till the end of the loan/financial product duration.
• Float Rate: Interests rates subject to change based upon present markets (in most cases, linked to the mentioned repo rate).
Example: If you take a loan of ₹500000 with an interest rate of 10% for 7 years, your total repayment will be roughly ₹8.5 lakhs. If the rate is 11%, you will be required to pay almost ₹9 lakhs. This illustrates how powerful even a single percent increase can be.
Factors That Influence Education Loan Interest Rates
Before finalizing the interest rate on student loans, lenders assess the following factors:
Average Education Loan Interest Rates in India (2025 projection)
The information below represents the average rates provided by the most important financial institutions.
| Bank/NBFC | Interest Rate Range |
| SBI Education Loan | 8.30% – 10.75% |
| HDFC Credila | 9.55% – 13.00% |
| Axis Bank | 9.00% – 13.50% |
| IDFC FIRST Bank | 9.50% – 12.00% |
| Bajaj Finserv | 11.00% – 14.00% |
Attention: The students’ profile being the main deciding factor tends to shift these rates based on the loan value, course of study, and the applicant’s details.
Fixed vs. Floating Rate Interest – Which is Right for You?
| Fixed Rate | Floating Rate |
| • ✅ Amounts in loan payment will not change and can be easily predicted. | • ✅ If economy lowers the interest rate, you will also benefit. |
| • ❌ Loan might cost more than floating loans. | • ❌ Uncertain outcomes if interest rates goes up in the future. |
ZestDhan Tip: When fixed rates seem like they will trend lower and you expect to borrow for longer than 5 years, consider a preventing your sleep disorder by utilizing fixed rates. On the flip side, if you don’t mind a gamble, then floating will be the best low cost option.
Costs Not Specified: Keep An Eye Out For
Take note of the other costs not mentioned when lenders charge.
• Procurement Fees: Excluding other charges, fees tend to sit at 0.5 and 2% of the total mortgage.
• Prepayment Penalties: Heavy charges imposed for repaying your loan aggressively.
• Moratorium Interest: Charged aggressively during the study period and post grace period.
How ZestDhan Helps: The provider gives all desired information that can be easily mapped while blasting you with fees making it easy to plan.
How Zest Dhan Makes It Easier
The process of selecting an adequate education loan can easily become disorienting. Here is what Zest Dhan does for you:
✅ Check Eligibility Instantly
✅ Matches to Lenders Tailored to the Borrower Profile
✅ Compare Interest Rates in Real Time
✅ Clear Terms Stripped of Hidden Fees, Accompanied by Expert Help
ZestDhan ensures user-friendly online applications, working with leading banks and NBFCs to provide reasonable offers devoid of paperwork hassles.
Best tips to Optimize Education Loan Interest Rate
Here are methods on how you can further reduce your interest loan burden:
- Manage the Credit Score of the Borrower (Co-Borrower).
- Apply using ZestDhan.
- Evaluating the use of secured loans if they are available.
- Apply using reputable organizations to increase chances of approval.
- Use rivalry to negotiate when you have multiple bids for lesser rates.
Closing Statements: Protecting your future from interest burdens.
When strategizing your interests in loans, don’t forget that education is an investment Towards your future. However, avoid overspending.
The understanding of education loan interest rate stems from step one with a reliable advocate like Zest Dhan. Crxi the partnership guarantees smoother deals.
Don’t forget that the starting point rests in choosing where to finance your education.
➡️ Verify your eligibility and review education loan offers in a matter of minutes with ZestDhan, a service that is straightforward and customized for students.