Thousands of Indian students opt for study abroad ventures to attain quality education. Education loans are considered as the best ways to cover the cost of studying abroad. Seeing the increasing trend in outbound students, a number of banks provide education loans for abroad studies at an affordable rate. If you are also finding one for yourself, here is a comprehensive blog which contains the list of best education loan in India.
This Blog Includes:
List of Educational Loans
Leverage Edu has formulated a list of best education loans in India that can help you reach your dream university:
|Bank||Student Loan Interest for Indian Universities||Student Loan Interest to Study Abroad|
|Bank of Baroda||7.70%||8.35%|
|Bank of India||9.05%||9.05%|
|Central Bank of India||8.50%||8.50%|
|Indian Overseas Bank||10.65%||10.65%|
|Union Bank of India||8.40%||8.05%|
SBI bank offers loan for popular courses like MBA, MCA, MS etc. both at the professional graduate and postgraduate levels, including regular technical and professional degree and diploma courses. You can avail free interest loan from the bank in diploma courses like Aeronautical, pilot training, shipping etc. If you are applying for the Charter Institute of Management Accountants courses- CIMA London, the bank will facilitate your educational journey with its low-interest loan. If you are taking loans up to 7.50 Lakh INR, you have to pay an interest rate ranging from 7.97%- 10.20%. You can expect a total educational loan of 35 Lakh INR from the bank.
|Schemes||Maximum Loan Amount||Applicable Interest Rate|
|SBI Global Ed-Vantage Scheme||INR 1.5 Crore||9.55%|
|SBI Student Loan Scheme||INR 20 Lakh||9.55%|
|SBI Student Scholar Scheme||INR 40 Lakh||7.45% to 8.75%|
|SBI Take Over Education Loan||INR 1.5 Crore||9.55%|
Axis Bank Education Loan
Another best education loan in India is provided by the Axis bank. It offers both study abroad as well as study in Indian loans to students. You can expect a loan of 10 Lakh INR if you are aiming to pursue studies within the country. However, for overseas education, you can avail 20 lakh INR from the bank. Moreover, the bank has set a special interest rate for women applicants ranging from 16.50% to up to 17.50%. All those who have applied for career-centric courses including Engineering, Medicine, Management are eligible to apply for the Axix bank loan facility. To fetch the loan facility through Axis bank, it is essential that you are an Indian citizen and you can secure at least 50% of marks in your class 12th or graduation.
|Loan Type||Loan Amount||Repo Rate||Spread|
|Education Loan||Upto INR 4 Lacs||4.00%||11.20%|
|Education Loan||INR 4 lacs – 7.5 Lacs||4.00%||10.70%|
|Education Loan||More than 7.5 Lacs||4.00%||9.70%|
Now that you have found out the names of 2 best education loans in India, here is a bonus blog on Education loans without collateral!
HDFC bank is another prominent name in the list of best education loans in India. It offers a range of educational loans for overseas education as well as within the country. The bank is providing immense facilities to its clients to get educational loans at their doorsteps. It is available for around 950 courses and 36 countries. You can avail up to 20 lakh with collateral and 7.5 lakh INR without collateral. In order to avail HDFC’s education loan facility, it is mandatory that your age falls in the bracket of 16-35 years. The bank offers a whopping amount of loan in the approved and leading undergraduate and postgraduate courses including PG Diplomas.
|Maximum Loan Limit||Rs. 20 Lacs +|
|Margin||Up to 4 lacs – NilAbove 4 lacs 5%|
|Security||Up to 7.5 Lacs – No collateral
Above Rs.7.5 Lacs -Residential Property,
HDFC Bank Fixed Deposit
|Interest Rate||9 – 14 %|
|Loan Repayment||15 years|
Have a look at the list of documents required for an education loan!
Punjab National Bank
PNB is considered as a trusted bank for education loans. It offers a wide range of higher education loans at low interest to the students. Under Shiksha loan scheme, you will have to pay an interest rate of 9.20% and the processing fee of 1% of the 10,000 minimum loan amount. Under the PNB Saraswati scheme, you can avail a loan amount of 7.50 % with an interest rate of 7.30% – 9.80%. Pratibha loan scheme has an interest rate of 7.20% – 7.80% and it has a loan tenure up to 15 years. Similarly, PNB Udaan has an interest rate of 7.30% – 9.80% where you can avail loan up to 7.50 lakh INR. PNB Kaushal’s interest rate is 7.30% – 8.70%. Here you can apply loan amount of starting from 50,000 to above 1 lakh. PNB Honhaar’s interest rate is 9.20%.
|Bank||Punjab National Bank|
|Interest Rate||7.30% to 9.20%|
|Age Limit||No Age Limit|
|Repayment Period||7 to 15 years|
Bank of India
Bank of India is again one of the best banks in terms of loan providers. It offers some best education loan in India for various undergraduate and postgraduate courses. The bank offers loan facilities in professional courses including Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc. You can have loan facilities to study in IIM, IIT, IISc, XLRI, NIFT, NID etc. If you are aiming for overseas higher studies, you can study courses under CA, MBA, MS etc. BOI offers two basic loan schemes including star education loan offering amount of 20 lakh INR with an interest rate of 8.95% to 9.75%. Also, it has another educational loan scheme called BOI star vidya loan offering an amount of 30 lakh INR within an interest rate of 7.25%.
Other Education Loans
Apart from the above-mentioned education loans, there are a couple of more names that deserve to be added to the list of best education loans in India. Let’s have a look at them:
|Syndicate Bank Education Loan||Vijaya Bank Education Loan|
|Canara Bank Education Loan||Avanse Education Loan|
|IDBI Education Loan||Bank of Baroda Education Loan|
|ICICI Education Loan||Allahabad Bank Education Loan|
|IOB Education Loan||Vidya Lakshmi Portal|
Features of Education Loans
- Education loan can be availed by a student between the age of 18-34 years to study in India or abroad
- Students can avail education loan for UG, PG or PhD courses in the field of engineering, medicine, architecture, hotel management etc
- Education loan covers tuition fees, exam fees, lab and library fees, caution deposit, travel, books and equipment, projects and study tours.
- Rate of interest on education loan ranges between 5 to 15%
- Students don’t have to submit collateral security of the loan amount is Rs. 4 lakhs. However, third party guarantee is required for Rs. 4- 7.5 lakhs
Some of the popular banks for education loan to study abroad are HDFC, Tata Capital, Union Bank of India, HDFC Credila etc.
There are many banks providing education loan at low interest rate but no bank provide education loan interest free
Education loans are a good idea. Pursuing a full-time course from top-ranked universities comes with an exorbitant load of finances. Sometimes students find it difficult to arrange for funds to fulfil their educational expense, in this case education loan helps students to pursue their dream course.
To be eligible for education loan, student must have scored 60% or above.
HDFC Credila offers Rs. 4- 7.5 lakhs loans without any collateral security.
Hope this blog has helped you with all the quintessential information in pretext to best education loan in India. To make the entire application process hassle-free, get in touch with Leverage Edu experts!