best education loan in india

Top 11 Banks for Education Loan in India 2020

Loan

Education is a highly valued asset in our lives. So, it is of utmost importance that people who can’t afford it do get it. Education Loans make the same possible. These are a subset of loans that provide financial help to students who need it for higher education in India or abroad. But, there are tons of banks to choose from. Which one would be most suited to you and how to decide that? This article will help you with the same.

Since 2018, you need to apply for education loans via the Vidya Lakshmi Education Loan portal. This is a government-run portal that seeks to help students looking for education loans. How will you know which loan to opt for through this e-government portal? Don’t worry, this article will help you. We have listed down 11 best banks for Education Loan in India. We have included several details about these loan schemes like Education loan Interest, the maximum quantum of loan they offer, and more. Keep reading to find out which loan scheme might be the best for you.

1. HDFC Education Loan

HDFC Bank provides you with several different types of education loans. The repayment period is up to 15 years and the loans are available at decent interest rates. You can also avail of a preferential education loan interest rate if you get admission in the top-ranked colleges. HDFC Education Loan does not have any hidden charges, the documentation is minimal and simple, and you can avail pocket-friendly EMI repayment options. As of now, they offer 3 types of Education Loans: Education Loan for Education in India, Education Loan for foreign education, and Central Government Interest Subsidy Scheme. The last scheme allows you to avail loans at subsidized rates of interest, the interest will be waived off during moratorium period and such loan type can be taken if your gross income annually is below INR 4.5 lakhs. The features of the other two loan types including HDFC Education Loan interest rate are tabulated below:

Sl. No. Features Education Loan for Indian Education Education Loan for Foreign Education
1. Loan Principal Up to INR 20 lakhs. INR 7.5 lakh loan does not need collateral No Upper Limit (With Collateral)

Up to INR 35 lakhs (Unsecured loan)

2. Rate of Interest 9.55% to 13.25% 9.55% to 13.25%
3. Repayment tenure 15 years 15 years
4. Collateral Applicable if you take a loan greater than INR 7.5 lakh Applicable if you take a loan with no upper limit
5. Tax Benefits Rebate in loan interest under Section 80-E of the Income Tax Act 1961 Rebate in loan interest under Section 80-E of the Income Tax Act 1961
6. Processing fee INR 1000 or 1% of the loan amount (whichever is greater)

2. Axis Bank Education Loan

Axis Bank Education Loan is provided to those students who take admission in career-oriented courses such as engineering, medicine, and management. It covers expenses such as tuition fees, hostel charges, study materials expenses, and other education-related costs. The maximum loan amount they offer is INR 10 lakhs for education in India and INR 20 lakhs for studying abroad.

The features of the same are listed below:

Education Loan Scheme Loan Quantum Interest Rates
Education Loan
  • <=INR 4 lakhs
  • INR 4 lakhs to INR 7.5 lakhs
  • >INR 7.5 lakhs
  • Base Rate +7%
  • Base Rate +8%
  • Base Rate +6%
Education Loan for Girl Student
  • <=INR 4 lakhs
  •  INR 4 lakhs to INR 7.5 lakhs
  • >INR 7.5 lakhs
  •  Base rate + 6.50%
  •  Base Rate + 7.50%
  •  Base Rate + 5.50%

*Base Rate: Currently fixed at 9.95%

3. Vijaya Bank Education Loan

Vijaya Bank is a PAN Indian bank or institution. It has built a reputation for itself over the years. It provides a variety of services along with its educational loans for students who wish to study in India or abroad. The details of Vijaya Bank Education Loan are listed below:

Features Details
Loan limit
  • Up to INR 10 lakhs for education in India but students of ISB, and other top colleges like IITs and IIMs, can avail up to INR 20 lakhs
  • Up to INR 20 lakhs for abroad studies
Rate of interest
  • Up to INR 4 lakhs: Base Rate+1.8 %
  • INR 4 lakhs and above: Base Rate+ 2.25%
  • Management quota admission: Base Rate+2.55%
  • Student of ISB and premier institutions like IITs, IIMs, etc.: 11.75%
Processing fee Nil
Repayment tenure IBA scheme:

  • Up to 10 years for loan amount up to INR 7.5 lakhs
  • Up to 15 years for a loan amount of INR 7.5 lakhs or above
  • Management quota: Up to 10 years
  • Premier Institutions and ISB: Up to 7 years

4. Union Bank of India Education Loan

Union Bank is one of the oldest banks in India with an establishment year dating back to 1919. The Union Bank of India Education Loan is designed for all those students who want to pursue higher education: graduation, technical education, professional course, management course, etc. in India or abroad. The following table will give you the details about the same.

Features Details
Loan Quantum
  • INR 10 lakhs (for education in India)
  • INR 20 lakhs (for studies abroad)
Repayment tenure
  • Up to INR 7.50 lakhs: up to 10 years
  • Above INR 7.50 lakhs: 15 years
Interest Rates
  • Up to INR 7.50 lakhs: 12.25% (for male students), 11.75% (female students)
  • Above INR 7.50 lakhs: 12.00% (male students), 11.50% (female students)
Processing fee Nil

5. SBI Education Loan

SBI Education Loan consists of varied schemes with pretty low interest rates. The repayment tenures of the bank are quite flexible and include a moratorium period after completion of education. There are 5 types of schemes offered under the SBI Education Loan. The details of the same are tabulated below:

Features Max. Loan Amount Interest Rates Processing fee Collateral Loan Tenure Eligibility
SBI Student Loan INR 20 lakhs 10/05% Up to INR 20 lakh- Nil

For loans above INR 20 lakh- INR 10,000 plus taxes

Loans up to INR 7.5 lakh: None

Loans above INR 7.5 lakh: Tangible collateral

15 years  

 

 

Indian nationals

SBI Scholar Loan INR 40 lakh 7.95% to 9.25% Nil Needed only for List A and List C colleges 15 years Indian national selected via entrance tests.
SBI Global ED-Vantage INR 1.5 crore 10.05% INR 10,000 Tangible collateral as security 15 years Indian Nationals
SBI Skill Loan INR 1.5 lakh 9.55% None 7 years Indian Nationals
SBI Take Over of Education Loan INR 1.5 crore 10.05% Nil Min. 1% of the proposed loan value 15 years Indian Nationals who are switching over their loan

6. Punjab National Bank Education Loan

PNB Education Loan consists of several schemes at attractive rates of interest. This loan can be availed for education in India and abroad as well. Students who are born abroad but want to pursue higher education in India can also take this loan. The details of the same are given below:

Education Loan Scheme Interest Rate Processing Fee Collateral Tenure
PNB Saraswati 7.30% to 9.80% Nil Up to INR 7.50 lakh: Guardian or parent needs to be a joint borrower

Above INR 7.50 lakh: In addition to a parent being a joint borrower, tangible collateral security is needed

15 yrs
PNB Pratibha 7.20% to 7.80% Nil Parent or guardian should be a co-borrower 15 yrs
PNB Uddan 7.30% to 9.80% 1% of the loan amount (min. of INR 10,000) Up to INR 7.50 lakh: Guardian or parent needs to be a joint borrower

Above INR 7.50 lakh: In addition to a parent being a joint borrower, tangible collateral security is needed

15 yrs
PNB Kaushal 7.30% to 8.70% Nil Guardian or parent should be a co-borrower
  • Up to INR 50,000: up to 3 yrs
  • INR 50,000 to 1 lakh: Up to 5 yrs
  • >INR 1 lakh: up to 7 yrs
PNB Honhaar 9.20% Nil Guardian or parent should be a co-borrower 15 yrs
PNB Pravasi Shiksha Loan 9.20% 1% of the loan amount (min. of INR 10,000) Immovable property with 125% value of the loan amount. Guarantors can also give liquid security worth of 125% of the loan amount. Up to 10 yrs

7. ICICI Bank Education Loan

ICICI Bank Education Loan will cover all your college and student-related expenses including college fees, exams, etc. It also provides you with Insurance premiums and covers travel expenses. Check out the details here:

Details Undergraduate studies Post-graduate studies
Interest Rate From 11.5% From 11.5%
Maximum Loan Amount INR 50 lakhs (for studies in India)

INR 1 crore (for abroad education)

INR 50 lakhs (for studies in India)

INR 1 crore (for abroad education)

Loan Tenure Up to 5 years after course completion Up to 8 years after course completion

8. Canara Bank Education Loan

Canara Bank Education Loan includes several schemes to help students pursue higher studies in India and abroad. The details and features of Canara Bank Education loan types are tabulated below:

Loan schemes Max. Loan Amount Interest Rates
IBA Model Education Loan Scheme Need-based
  • Up to INR 7.5 lakhs: 9.85% p.a., 9.35% p.a. (for girl students)
  • >INR 7.5 lakhs: 9.35% p.a., 8.85% p.a. (for girl students)
IBA Skill Loan Scheme INR 1.5 lakh 9.35% p.a.
Vidya Turant INr 40 lakh 7.85% p.a.
Vidya Shakti INR 7.5 lakhs (for degree courses), INR 1.5 lakhs (for a vocational certificate, diploma, and skill loan) 7.85% p.a.
Vidya Shakti INR 1 lakh 9.85% p.a

9. Bank of Baroda Education Loan

Bank of Baroda Education Loan offers attractive interest rates with no collateral requirement for loans up to INR 4 lakhs. The details of the various schemes provided under Bank of Baroda Education loan are given below:

Loan Scheme Interest Rate
Baroda Vidya 7.50% to 9.75%
Baroda Gyan 9.25% (including Strategic Premium)
Baroda Education Loan to Students of Premier Institutions (For Education in India) 7.25% to 8.75%
Baroda Scholar 8.50% to 9.25%

10. Allahabad Bank Education Loan

Allahabad Bank was founded back in 1865 and offers a wide range of financial services. Under its loan section, one of the most popular products is the Allahabad Bank Education Loan. It has been structured as such to meet every need of students. Check out its details below:

Features            Details
Loan Quantum Up to INR 20 lakhs
Processing fee Nil
Repayment method Up to INR 7.50 lakh: Up to 10 years

Above INR 7.50 lakhs: Within 15 years

11. Indian Bank Education Loan

Indian Bank is a well-established premier banking name in our country. Indian Bank Education Loan covers a student’s hostel fees, college tuition fees, books, travel expenses, and other student-related costs. The details of the same are listed below:

Sl. No. Features Details
1. Rate of Interest 12.50% p.a. with a concession of 0.50% as per the IBA scheme for female students
2. Loan Margin Nil up to INR 4 lakhs

Above 4 lakhs, a loan margin of 5% for education in India and up to 15% for foreign education

3. Loan Quantum Up to INR 15 lakhs (studies in India)

Up to INR 25 lakhs (studies abroad)

4. Loan Repayment Within 10 years for loans up to INR 7.5 lakhs

Within 15 years for loans above INR 7.5 lakhs

5. Insurance Cover Provided under ‘New IB Jeevan Vidya’ scheme

 

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