Education Loan Interest Rates In Comparison to Banks

Education Loan Interest Rates

Join Telegram channel

An interest rate is the amount of interest charged over and above the principal amount by the lender from the borrower. In simple words an interest rate is the amount of interest paid by the borrowers for the money they have borrowed from the lender. Interest rate is usually a percentage of the sum borrowed, For eg; a simple 10% interest means if one borrows Rs 100, he will have to pay back Rs 110.

Education Loan Interest Rates

Education Loan Interest Rates in Comparison to Banks

Education Loan is a type of loan avail by the students to pursue their higher education. There are various education loan schemes offered by the banks. Today in this post we are going to discuss about education loan interest rates as per their schemes. Mentioned below are interest rates, processing fees, loan amount, loan tenure, prepayment charges of education loan as per the banks.

Read Also: Car Loan Interest Rates

1. State Bank of India Education Loan Interest Rates

SBI Yono

SBI offers wide range of education loan[1]. If you are planning to study abroad or planning for your higher studies but can’t afford because of higher fees then, no need to worry, you can opt for education loan and can go for your dream education. SBI Education Loan is a popular option for every students because of its low interest rate, easy repayment options, income tax benefits, interest rate concession for female students and many more.

Loan SchemesLoan LimitInterest Rate
SBI Student Loan SchemeUp to Rs 7.5 lakh10.55%
SBI Scholar Loan SchemeRs 40 lakh to Rs 7.5 lakhRanges from 7.95% to 9.45%
SBI Skill Loan SchemeUp to 1.5 lakh10.5%
SBI Global Ed VantageAbove Rs 7.50 lakh to Rs 1.5 crore10.55%
SBI Takeover of Education Loan SchemeAbove Rs 10 lakh to Rs 1.5 crore10.55%
SBI Shaurya Education LoanUp to Rs 7.50 lakh to Rs 1.50 crore10.55% to 11.15%
Processing feesLoans up to Rs 20 lakh: Nil Loans above Rs 20 lakh: Rs 10,000 + tax
Loan AmountFor Studies in India Maximum limit is up to Rs 50 lakh For Medical up to 30 lakh Studies in Abroad up to Rs 7.50 lakh Maximum limit is Rs 1.50 crore under Global Ed – Vantage scheme
Repayment tenureUp to Rs 15 years
MarginNo margin for amount up to Rs 4 lakh For Studies in India and Abroad the margin is 5% and 15% respectively for amount above Rs 4 lakh

2. Canara Bank

Canara Bank

Canara Bank offers various education loan schemes[1]. Individuals who want to pursue their higher education can avail for Canara bank education loan at lowest and attractive interest rate with 15 years of repayment tenure.

Canara Bank Education Loan Interest Rates

Loan SchemeMaximum Loan AmountInterest Rate
New Education Loan scheme to pursue master degree from top ranking universitiesUp to Rs 1 crore10.75% – 11.25%
Vidya Sagar Loan SchemNA10.75% – 11.25%
IBA Skill Loan SchemeRs 5000 to Rs 1.5 lakh10.30%
Vidya ShakthiRs 7.5 lakh to Rs 1.5 lakh9.15%
Vidya SahayUp to Rs 1 lakh11.15%
Eligibility CriteriaStudents who have secured admission
Loan repayment tenureUp to 15 years
Processing feeNIL
Quantum of LoanUp to Rs 10 lakhs for studies in India and up to 20 lakhs for studies abroad
MarginNo margin required for loans up to Rs 4 lakhs, 5% of margin for loans above Rs 4 lakhs for studies in India and 15% of margin for above 4 lakhs for studies overseas

3. HDFC Bank Education Loan Interest Rates

HDFC

There are three different forms of education loans available for students from HDFC Bank[1]. These loans offers several advantages, such as cheap interest rates and are these interest rates are competitive and convenient for all applicants of different income brackets as compared to other private banks.

Interest Rate9.55% – 13.25%
Loan amountUp to 10 lakhs for studies in India and no limit for overseas
Loan tenureUp to 15 years
Processing fee1% of the sanctioned loan amount or Rs 1000 whichever is higher and 1.5% of sanctioned loan amount
Prepayment chargesFor India Studies: 4% of outstanding loan amount For Abroad: NIL
Charges for late EMI payment24% p.a. on the outstanding EMI amount from the EMI due date
EMI return chargesRs 450

4. Axis Bank

Axis Bank

Axis Bank offers education loan to students who have secured admission to study in India or abroad. Axis Bank offers education loan at low interest rate and less paperwork. The minimum loan that can be availed is Rs 50,000. The education loan offered by Axis Bank comes with various features such as tax benefits, simple documentation, faster disbursal and no prepayment charges. Axis Bank education loan interest rate ranges from 10.5% to 15%.

WhatsApp Group Join Now
Telegram Group Join Now
Instagram Join Now

Axis Bank Education Loan Interest Rates

Loan AmountInterest Rate
Up to Rs 4 lakh15.20%
Rs 4 lakh to Rs 7.5 lakh14.70%
More than Rs 7.5 lakh13.70%
Loan amountUp to Rs 75 lakh
Processing fees1% – 2% of the loan amount + GST
Quantum of LoanMinimum of INR 50,000 and Maximum of INR 75 lakhs
MarginNo margin required for loans up to INR 4 lakhs, 5% of margin for loans above INR 4 lakhs for studies in India and 15% of margin for above 4 lakhs for studies overseas

5. Punjab National Bank Education Loan Interest Rates

PNB

Punjab National Bank offers various education loan with attractive interest rates and 0.50% concession on interest for girl students. Aval education loan from PNB with less paperwork and low interest.

Loan SchemeInterest Rates p.a.
PNB Saraswati11% to 11.75%
PNB Saraswati – Female10.50% to 11.25%
PNB Pratibha8.30% to 10.25%
PNB Udaan11% to 11.75%
PNB Udaan (Female)10.50% to 11.25%
PNB Kaushal10% to 10.50%
PNB Honhaar11%
PNB Pravasi Shiksha Loan11%
PNB PM CARES Education Loan Scheme9.25% to 9.75%
Loan amountUp to 10 lakhs for studies in India and up to 20 lakhs for studies overseas
Loan tenureUp to 15 years
Processing feesNIL
MarginNo margin required for loans up to INR 4 lakhs, 5% of margin for loans above INR 4 lakhs for studies in India

6. Federal Bank

Federal Bank

Federal Bank offers education loan for students to pursue their higher education. Federal Bank education loan interest rate starts from 10.25% per annum. Federal bank offers 0.50% rebate in the rate of interest for female applicants.

Federal Bank Education Loan Interest Rates

ParticularsDetails
Interest Rate10.5%
Loan amountINR 10 to 20 lakh
Loan tenureUp to 15 years

Mentioned below are Education Loan Interest Rates, Loan Amount and Loan Tenure according to loan schemes

Loan SchemesLoan AmountInterest Rates
Special Vidya LoanUp to Rs 10 lakhs for studies in India and Rs 20 lakhs for abroad10.5%
Federal ScholarsUp to Rs 20 lakhs10.5%
Federal Career Solutions LoanFor Studies in India: Up to Rs 75 lakhs For Abroad: Up to Rs 100 lakhs10.5%
Loan SchemeSecurity and MarginLoan Repayment Tenure
Special Vidya LoanNo security is needed up to Rs 4 lakhsUp to Rs 4 lakhs no margin is applicable5% margin for studies in India above Rs 4 lakhs15% margin for studies in abroad for above Rs 4 lakhsMoratorium period + 5 to 7 years
Federal ScholarsNo security is requiredNo margin is required up to Loan amount of Rs 10 lakh5% margin for loans above Rs 10 lakhsUp to 15 years
Processing feesUp to INR 4 lakhs: NIL INR 5000 for above INR 4 lakhs
Prepayment chargesNIL
Penal charges2% to be charges for loans above Rs 4 lakhs

7. ICICI Bank

ICICI Bank

ICICI Bank provides education loan to students without any prepayment charges and pre-closure charges. Students who have secured admission at universities are eligible for this loan. Avail loan from ICICI bank with hassle free process.

ICICI Bank Education Loan Interest Rates

Interest RateSecured: Starting at 10.50% per annumUnsecured: Starting at 10.75% per annum
Loan amountUp to 10 lakhs for studies in India and up to 20 lakhs for studies overseas
Loan tenureUp to 12 years
Processing feesUp to 2% + GST
MarginPremium institutes: No margin required Other institute: No margin required up to Rs 20 lakh For loans more than Rs 20 lakh, 5% to 15% margin required  
Cheque bounce chargesRs 500 + GST
Type of credit facilityMinimumMaximumMean
Education Loan isMart Interest Rate8.25% per annum13.20% per annum10.77% per annum

8. Bank of Baroda Education Loan Interest Rate

Bank of Baroda

Bank of Baroda offers a wide range of education loan with low-interest rates. Bank of Baroda Education loan interest rate starts from 6.85% with repayment duration of up to Rs 15 years. No collateral is required for loans up to Rs 4 lakh.

Loan SchemeInterest Rate
Baroda Vidya112.20%
Baroda Gyan10.85% to 11.10%
Baroda Education Loan to Students of Premier Institutions (For studies in India)8.85% to 10.85%
Baroda Scholar10.60% to 11.25%
Baroda Executive Development Premier Institutions (For Studies in India)9.10% to 11.10%
Baroda Executive Development Premier Institutions (For Studies Overseas)10.85% to 11.20%
Baroda Skill Loan Scheme10.60%

List of charges

Penalty interest2% above INR 2 lakh
Processing feesNIL
Loan amountUp to 60 lakhs
Repayment PeriodUp to 15 years
MarginNo margin required
SecurityNo security required

9. UCO Bank

UCO Bank

UCO Bank provides a wide range of educational loans for studies in India and abroad. The loans have affordable interest rates. UCO Bank understands the needs of the students and offers extremely competitive education loans at a better interest rate. Apply education loan from UCO Bank with less paperwork and you will get a fastest disbursal.

The interest rates for the various education loan schemes offered by the bank are as given below:

Loan SchemesLoan AmountInterest Rates
UCO Bank Education LoanUp to 10 lakhs for India and Rs 20 lakhs for Overseas9.30% p.a. to 9.70% p.a.
UCO Bank Premier Educational Loan SchemesUp to Rs 30 lakh8.45% p.a.
UCO Bank Super Premier Educational Loan SchemeUp to Rs 30 lakh7.30% p.a.
UCO AspireIndia: Rs 10 to Rs 73 lakh Overseas: Rs 20 to Rs 75 lakh7.30% p.a.
UCO Skill LoanUp to Rs 1.5 lakh8.80% p.a.
Loan amountUp to 30 lakhs
Loan tenureUp to 15 years
Processing feesNIL
Prepayment chargesNIL

10. Union Bank

Union Bank of India

Union Bank offers education loan at lowest interest rates. Avail education loan from Union bank with less paperwork. It also offers 0.50% concession for girl students. Union Bank provides term loan to India students for pursuing higher education in India and abroad.

Union Bank Education Loan Interest Rates

Loan SchemesMaximum Loan AmountInterest Rates
Union Education (under CGFSEL)Up to Rs 7.5 lakh9.70% p.a.
Under Education (not under CGFSEL)No maximum loan limit. Need based financing For NRI students up to Rs 30 lakh9.30% p.a. to 10.95% p.a.
Under Education Loan for ISB StudentsRs 30 lakh7.70% p.a. to 7.90% p.a.
Union Education Special Education Loan SchemesIndia: Rs 10 to Rs 75 lakh For Overseas: Rs 20 to Rs 75 lakh7.50% p.a. to 9.45% p.a.
Union Education Skill DevelopmentUp to Rs 1.5 lakh9.20% p.a. to 10.95% p.a.
Loan amountMaximum 10 lakhs for studies in India and Maximum Rs 20 lakhs for Overseas
Repayment tenureUp to 15 years
Processing feesNIL
MarginNo margin required for loans up to Rs 4 lakhs, 5% margin required for loans above 4 lakhs for studies in India and 15% of margin for above 4 lakhs for studies overseas

FAQs

1. What is the loan repayment tenure for an education loan?

Ans: The average tenure for an education loan is between 5 to 7 years. However, for larger loan amount the maximum loan tenure term is up to 15 years.

2. When can I start repaying my loan?

Ans: The repayment tenure may start either after completion of your course or after getting a job.

3. Can I add co-applicant to my loan?

Ans: Yes, for some banks, a co-applicant is mandatory for an education loan.

4. To whom I can add as my co-applicant?

Ans: Parents, guardians, and spouses can be your co-applicant.

5. Is there a prepayment penalty on education loan?

Ans: Most banks levy prepayment penalty on education loan and most banks does not levy.

6. Are interest free education loans provided by lenders?

Ans: No, an interest free education loan is not provided by the lenders. Interest rate is mandatory.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top