Best Education Loan in India

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best education loan in india

Thousands of Indian students opt for study abroad ventures to attain quality education. Education loans in India or even over the world are considered as the best ways to cover the cost of studying abroad. Considering the increasing trend of 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.

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
Axis Bank 13.70% 13.70%
Bank of Baroda 7.70% 8.35%
Bank of India 9.05% 9.05%
Canara Bank 8.50% 8.50%
Central Bank of India 8.50% 8.50%
Federal Bank 10.05% 10.05%
IDBI Bank 6.90% 8.40%
Indian Overseas Bank 10.65% 10.65%
PNB 7.05% 10.65%
SBI 7.00% 8.80%
UCO Bank 9.30% 9.30%
Union Bank of India 8.40% 8.05%

SBI Education Loan

SBI bank offers education loans 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 interest-free loan from the bank for 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 bank that provides the best education loans in India is 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 Education Loan 

HDFC bank is another prominent name in the list of banks that provide best education loans in India. It offers a range of educational loans for overseas education as well as within the country. The bank provides immense facilities to its clients to get educational loans at their doorsteps. The educational loan is available for around 950 courses and 36 countries. You can avail a loan of up to 20 lakh with collateral and 7.5 lakh INR without collateral.  To avail HDFC’s education loan facility, your age must fall in the bracket of 16-35 years. The bank offers a large amount of loan in the approved and leading undergraduate and postgraduate courses, that can also include 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
Processing Fee 1%
Interest Rate 9 – 14 %
Loan Repayment 15 years

Have a look at the list of documents required for an education loan!

Punjab National Bank Education Loan

PNB is considered as a trusted bank for the purpose of education loan. 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
Loans PNB Udaan
PNB Saraswati
PNB Honhaar
PNB Pratibha
PNB Kaushal
Interest Rate 7.30% to 9.20%
Age Limit No Age Limit
Repayment Period 7 to 15 years
Official Website pnbindia.in

Bank of India Education Loan

Bank of India is again one of the best banks in terms of education loan providers. It offers some best education loan in India for various undergraduate and postgraduate courses. The bank offers loan in professional courses including Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc. You can avail 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

  1. Education loan can be availed by a student between the age of 18-34 years to study in India or abroad
  2. Students can avail education loan for UG, PG or PhD courses in the field of engineering, medicine, architecture, hotel management etc
  3. Education loan covers  tuition fees, exam fees, lab and library fees, caution deposit, travel, books and equipment, projects and study tours.
  4. Rate of interest on education loan ranges between 5 to 15%
  5. 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

Eligibility Criteria for Education Loans in India

In order to be eligible for an education loan, the aspirants will need to meet certain eligibility criteria. They can be divided into three parts, namely ‘Nationality’, ‘Institutes’ as well as ‘Programs’. All of these eligibilities have been described in detail below.

On the Basis of Nationality
The applicant can be an Indian citizen
The applicant can be a Non-Resident Indian (NRI)
The applicant can be an Overseas Citizens of India (OCI)
The applicant can be Persons of Indian Origin (PIOs)
The applicant can also be students that are born to Indian parents in foreign countries and wish to study in India
On the Basis of Institutes
The applicant can be enrolled in a recognized institution or government college
The applicant can be enrolled in a private institute helped by the government
The applicant can be enrolled in a professional institution
The applicant can be enrolled in an international college or universities
On the Basis of Programs
The applicant can be enrolled in a postgraduate program
The applicant can be enrolled in a doctoral course or PhDs certificate course with a duration of 6 months or longer
The applicant can be enrolled in technical/diploma/professional courses.

FAQs

Which bank is best for educational loan in India

Some of the popular banks for education loan to study abroad are HDFC, Tata Capital, Union Bank of India, HDFC Credila etc.

Can we get interest free education loan?

There are many banks providing education loan at low interest rate but no bank provide education loan interest free

Is education loan a good idea?

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.

How much percentage is required for study loan?

To be eligible for education loan, student must have scored 60% or above.

Does credila give loan without collateral?

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. Contact our experts at Leverage Edu to get finesse assistance for your study abroad endeavor. To get a free consultation from us call us at 1800 572 000 now!

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