An education loan plays an important role, especially in the academic lives of college students and helps them in pursuing their higher studies in life. Education loan helps those students who want to study but can’t afford it. In most cases, an education loan is availed by the students who want to study abroad. There are various Banks offering Education loans at low-interest rates. Students can compare and choose the one which is suitable for them.
For this reason, Here’s the list of banks that are offering the best interest rates as well as deals on study loans. To know more about which bank has lowest interest rate on education loan check below the comparison of various banks.
Comparing the Interest Rates Offered by Various Banks
Students can Check out the top 10 public sector banks that are currently offering education loans at the lowest interest rates.
|Sr No.||Banks||Interest Rate (p.a.)|
|1||Bank of Baroda||6.75% to 9.85%|
|2||State Bank of India||6.85% to 8.65%|
|3||Central Bank of India||6.85% to 8.75%|
|4||Bank of India||6.85% to 9.35%|
|5||Punjab National Bank||6.90% to 9.55%|
|6||Union Bank of India||8.80% to 10.05%|
Which bank has lowest interest rate on education loan
Bank of Baroda: If we talked about the lowest interest rate offered by a bank on an education loan, then we can say that Bank of Baroda is offering up to 80 lakhs for an education loan with a 6.75 per cent to 9.85 per cent of interest rate. Banks are also charging a processing fee that ranges from Nil to Rs 10,000 and it totally depends upon the loan amount. Maximum loan tenure can be of 10 to 15 years, along with collateral of 100% tangible security. Education loan is available for students from nursery school and above. Also, Female students can get concessions on the interest rates.
Education Loan Eligibility
Students can check eligibility criteria before applying for an Education loan.
- The student should be an Indian citizen, or
- Non-Indian Residents(NRI), or
- Overseas Citizens of India(OCI), or
- Persons of Indian Origin(PIO), or
- Students who were born to Indian parents abroad and wished to study in India
Under the courses section, students can opt for
- Undergraduate programs
- Postgraduate programs
- Doctoral courses and PhDs
- Certificate courses of 6 months
- Job-oriented courses
- Diploma/Technical/professional courses
They can be from
- Recognized institutions as well as government colleges
- Private institutes aided by the government
- Professional institutions
- International colleges and universities
- Collateral-free loans can be up to Rs.7.5 lakh
- For selected courses and from particular lenders, collateral-free loans can be up to Rs.40 lakh only
Features & Benefits of Study Loan
- You can get a maximum loan of Rs. 1 crore.
- Loan repayment tenure can be up to 15 years.
- You will Get Education loans for studies in India as well as abroad.
- Some lenders are offering the loan disbursal only before applying for a Visa.
- Also, a Door-step service is provided to collect the required documents.
- There are certain banks that offer concessional interest rates, especially to female students.
- Now, applicants can enjoy the tax benefits that are up to 8 years
For more details regarding education loans, students can visit the website of Dialabank.
List of Documents that are required while applying for Education Loan
Here is the list of documents that are required from the students by the lenders:
- Admission letter from their educational institution
- Marksheets from previous school/college
- Age-proof documents, i.e. Adhaar card, passport, PAN card etc.
- ID proof documents
- Address proof
- Salary slips
- Recent bank account statements
- Passport size photographs
- Appropriate Visa
How to Apply for an Education Loan
- It is the easiest way of applying for an education loan online. Also, in online mode, there are 2 ways: Firstly, fill in the application form then, attach all the required documents and submit it.
- The second way is you can apply for an education loan by providing all your details to the lender, and they will get in touch with you soon to discuss all terms and conditions regarding the loan.
- Through offline, students can Visit a Branch with all the necessary documents and discuss the loan terms and conditions with a representative, fill the form, and then apply in person.
- Secondly, students can call the Lender also, and they will discuss the loan terms with you and proceed further to apply for a loan.
Education Loan FAQ’s
✅ Can one get an education loan free of interest?
✅ What happens in the case if students discontinue the course and can get employment only within the grace period?
So, in that case, students should start repaying the amount of loan immediately only after getting the appropriate job for themselves.
✅ Do all study loans covers 100% of the education/study expenses?
Yes, of course, study loans cover 100% of all education expenses. Also, full coverage is only provided for expenses that are under a certain limit. Lenders will make the margin only if the expenses increases from the limit.
Table of Contents
- 1 Education Loan
- 2 Comparing the Interest Rates Offered by Various Banks
- 3 Which bank has lowest interest rate on education loan
- 4 Education Loan Eligibility
- 5 Features & Benefits of Study Loan
- 6 List of Documents that are required while applying for Education Loan
- 7 How to Apply for an Education Loan
- 8 Education Loan FAQ’s