Education is a crucial aspect of life that can shape an individual’s career and future. However, pursuing higher studies can be expensive, and not everyone can afford it without financial assistance.
This is where education loans come in, allowing students to finance their studies without worrying about high upfront costs.
In India, several banks offer education loans at competitive interest rates to help students achieve their academic goals.
Banks offering the best education loans in India:
1. State Bank of India
State Bank of India (SBI) is one of the best banks for student loans, offering various types of education loans to students who wish to pursue higher education in India or abroad. Some of their key features are as follows:
Loan Amount: For studies in India, SBI offers up to ₹10 lakhs, and for studies abroad, the maximum loan amount is ₹20 lakhs. No collateral or security is required for education loans up to ₹7.5 lakhs.
Repayment Period: 5 to 15 years.
Interest Rates: 8.5% to 11.5%, depending on the course and loan amount.
Processing Fee: No fee for loans up to ₹20 lakhs and ₹10,000 plus taxes for loans above 20 lakhs.
Moratorium Period: Up to 12 months after the completion of the course. During this period, the borrower is not required to repay the loan. However, interest accrues on loans during this period.
Margin: No margin up to ₹4 lakhs. Above ₹4 lakhs, 5% for Indian students and 15% for abroad studies.
2. HDFC Bank
HDFC Bank is a leading private sector bank in India that offers education loans for a wide range of courses in India and abroad.
HDFC Bank education loans can be used to finance tuition fees, hostel fees, exam fees, and other related expenses. Features of HDFC Bank Education Loans:
Loan Amount: HDFC Bank offers education loans of up to ₹20 lakhs for studies in India and up to ₹40 lakhs for studies abroad. Loans up to ₹7.5 lakhs do not require any collateral, while loans above ₹7.5 lakhs require collateral.
Interest Rates: Starting from 9.5% p.a.
Repayment Tenure: Up to 15 years, including a moratorium period of up to 1 year after the completion of the course.
Processing Fee: No fee for domestic studies and up to 1% of the loan amount for international or part-time education.
3. Axis Bank
Axis Bank is another private sector bank that offers education loans for higher studies in India and abroad. The loan covers a range of courses, from undergraduate and postgraduate courses to diploma and vocational training programs.
Here are some of the key features of the Axis Bank Education Loan:
Loan Amount: The loan amount can range from a minimum ₹50,000 with no upper limit for secured loans. Axis Bank may require collateral above ₹50 lakhs in the form of property, fixed deposits, or other assets.
Interest Rate: Starts from 13.70%p.a. and can go up to 15.20% p.a.
Repayment: Up to 15 years, depending on the loan amount and the borrower’s repayment capacity.
4. Canara Bank
Canara Bank is a public sector bank that offers education loans for studies in India and abroad. It is one of the best banks for education loans in India. Features and Benefits of Canara Bank Education Loan:
Loan Amount: ₹7.5 lakhs to ₹1 crore, depending on the course.
Repayment: The repayment of the loan can be done in flexible EMIs over a period of up to 15 years, depending on the loan amount and the borrower’s profile.
Margin: Varies from Nil to 15% depending on the type of loan
Interest Rates: The bank offers interest rate concessions for eligible students, starting at 9.15%.
Processing Fee: Canara Bank charges a nominal processing fee for education loans, which is 0.5% of the loan amount for studies in India and 1% of the loan amount for studies abroad, and nil for some types of loans.
5. Punjab National Bank
Punjab National Bank (PNB) is another public sector bank that offers education loans for studies in India and abroad.
PNB is a good option for students looking for low-interest rates. PNB education loans come with the following features:
Loan Amount: PNB offers education loans up to Rs 20 lakh for studies in India and up to Rs 50 lakh for studies abroad. PNB requires collateral in the form of property, securities, or any other asset that the bank deems acceptable above ₹7.5 lakhs.
Interest Rates: Currently, the interest rate for education loans at PNB starts at 8.55%.
Repayment: The borrower can choose to repay the loan in EMIs over a period of up to 15 years.
Margin: PNB requires no margin under ₹4 lakhs and 5% for loans above ₹4 lakhs for studies in India, and 25% for loans above Rs 4 lakh for studies abroad.
Processing Fees: Up to 1% of the loan amount for education loans
Conclusion
Education loans are an excellent financial option for students to pursue their academic goals. It is essential to research and choose the right bank and loan scheme that suits their financial requirements and academic pursuits.
Students must also consider factors such as interest rates, collateral requirements, repayment options, and processing fees when choosing an education loan.
With the help of the right banking partner and thorough research, students can achieve their academic aspirations without worrying about the financial burden.
If there’s still any confusion or concern, our team of financial advisors at EduFund is just a call away.
