Which Bank Has Lowest Interest Rate on Education Loan?

Interest rates on education loans in India may depend on your lender and loan amount. Currently, rates range between 7.30 percent and 12.50 percent and it’s wise to compare these offerings before making your final decision.

Bank Name	Interest Rate	Loan Amount	Loan Tenure
State Bank of India (SBI)	Starting from 6.80%*	Up to 1.5 Crore*	Up to 15 Years*
Axis Bank	Starting from 8.55%*	Up to 75 Lakhs*	Up to 15 Years*
Canara Bank	Starting from 6.90%*	Up to 30 Lakhs*	Up to 15 Years*
HDFC Bank	Starting from 6.90%*	Up to 20 Lakhs*	Up to 15 Years*
Punjab National Bank (PNB)	Starting from 6.75%*	Up to 1 Crore*	Up to 15 Years*
ICICI Bank	Starting from 7.00%*	Up to 1 Crore*	Up to 15 Years*
Bank of Baroda (BOB)	Starting from 6.75%*	Up to 80 Lakhs*	Up to 15 Years*
Union Bank of India	Starting from 6.80%*	Up to 1 Crore*	Up to 15 Years*
IDFC First Bank	Starting from 7.00%*	Up to 40 Lakhs*	Up to 15 Years*
Indian Overseas Bank (IOB)	Starting from 6.80%*	Up to 40 Lakhs*	Up to 15 Years*

Table of Contents

Complete Guide to Education Loans: Choosing the Most Appropriate Option

Introduction

Financial barriers can make pursuing higher education an enormously challenging proposition, but education loans offer an ideal solution to help you realize your academic dreams without incurring financial strain. We will cover various aspects of education loans such as interest rate, eligibility criteria and documentation requirements before discussing which banks in India provide these types of loans. So let’s dive right in to explore this fascinating world!

What Is an Education Loan?

Education loans are provided by financial institutions and banks as a form of aid for students looking to cover their education expenses. It can help cover undergraduate, postgraduate, professional training, vocational education or even study abroad programs.

How Does Education Loan Work?

Education loans serve to bridge the financial gap between educational costs and available funds for pupils and families, which allows them to focus more fully on their studies without worry about immediate repayment of a loan amount. Amounts borrowed are disbursed directly to institutions of study so students don’t need to worry about immediate payments while continuing with their studies.

Eligibility Criteria for Education Loan in India

For education loan Eligibility in India, Here is what is required: Indian Citizenship Residents who hold Indian citizenship may qualify for loans to support their education.

Age: Many banks provide student loans to those aged 15-35 years.
Academic Achievement: Banks may scrutinize an applicant’s academic achievements and might set minimum marks requirements to qualify.
Admissions Loans Available with Recognized Institutions: Loans may be provided for classes offered at colleges in India and worldwide that have earned recognition by academic bodies or universities.

Documents Required For Education Loan?

To successfully apply for an education loan, certain documents are needed in the application. They could include:

Documents required for identification include Aadhaar card, Pan card, passport or driving licence.
Proofs of address may include Aadhaar card, Ration card, Electricity bill or rental agreements.
Documents Required for Admission and Fee Structure.
Income Proof: Proof of income such as tax returns, salary slips or bank statements of co-borrower/guarantor.
Copies of Collateral Documents: Real estate documents or any other paperwork necessary as collateral (if applicable).

Who Can Receive an Education Loan?

Students pursuing or planning to pursue higher studies can apply for education loans through banks in India. Parents or legal guardians may also apply on behalf of their children for these loans. Which Bank Offers Education Loans in India? When selecting an education loan bank in India, various considerations need to be taken into account, including interest rates, payment options and client service. Each bank offers different sets of services. Some of the top banks that offer student loans include:

State Bank of India
Punjab National Bank
HDFC Bank
Canara Bank
ICICI Bank
Axis Bank

How to get education loan for abroad studies without collateral?

Studies abroad can be an enriching experience, yet their cost can be prohibitively expensive. Certain banks in India provide education loans without collateral to students studying in other countries. Here are a few steps you can follow to secure such an education loan and study abroad without worry or stress.

Research Banks: Search banks offering loans without collateral requirements so you can study abroad.
Eligibility Check: Confirm that you meet the bank’s eligibility criteria for these loans.
Loan Application: Include your loan application along with supporting documents such as admission letters and fee structure academic documents to complete your submission.
Financial Proofs: Show proof of your ability to repay the loan through savings accounts, fixed deposits or education loans from multiple sources.
Co-Borrower/Guarantor: Banks may require co-borrowers or guarantors, so be ready with all the documents relating to this person fulfilling this role.

Read Also –

Which Bank Gives Education Loan Without Collateral For Abroad?

India boasts several banks that provide student education loans with no collateral requirement to those studying overseas, such as:

State Bank of India
Axis Bank
Canara Bank
Punjab National Bank.
Union Bank of India

What Is Margin In Education Loan?

Margin refers to the percentage of tuition costs covered by an educational loan that must be covered by its borrower. Bank requirements can differ greatly regarding margin requirements; some banks provide full coverage while others may request that a specific percentage of your loan serve as margin payments.

How To Pay Education Loan Without Interest?

Moratorium periods typically do not come, but interest accruing during them can either be paid back by the borrower directly, or capitalized onto their loan (capitalization) and paid back later (payable after moratorium timeframe). For good results it is wise to discuss options available from banks regarding payment of interest.

Education Loan Scheme By Narendra Modi?

Under Prime Minister Narendra Modi’s direction, India has implemented various educational policies designed to aid and encourage students. One such scheme is Pradhan Mantri Vidya Lakshmi Karyakram (PMVLK), designed to provide financial aid through student education loans for those in need.

What is Tax Benefit on Education Loan?

Individuals eligible to take advantage of Section 80E of the Income Tax Act can enjoy tax breaks when accruing interest on education loans; it is advised to speak to a tax professional or consult the most recent guidelines issued from the Income Tax Department for accurate information regarding any potential tax breaks.

Leading Banks Offer Educational Loans ( Short )

Canara Bank Education Loan: Canara Bank offers education loans to students enrolled in various classes across India and around the world at reasonable interest rates and repayment plans. Union Bank Education Loan: Union Bank of India offers education loans at competitive interest rates with flexible repayment plans for students seeking higher education in India or abroad. Education Loan BOB: Bank of Baroda provides loans for various fields of study such as management, engineering and medicine at competitive interest rates that allow for simple repayment plans. They offer these loans with convenient repayment schedules that meet student needs. Axis Bank Education Loan: Axis Bank offers education loans with competitive interest rates, simple application processes and flexible repayment plans to help students fulfill their educational ambitions. IDFC Education Loan: IDFC First Bank offers affordable education loans to qualified students pursuing higher levels of study both domestically and abroad. Their loan offers come with flexible repayment plans and competitive interest rates. ICICI Bank Education Loan: ICICI Bank offers affordable education loans at competitive interest rates with multiple repayment options and rapid loan disbursement.

Leading Banks Offer Educational Loans ( Long )

HDFC Credila Education Loan: As part of HDFC Bank, HDFC Credila specializes in offering education loans at highly competitive interest rates and with flexible repayment terms. They specialize in offering tailored loan solutions with tailored loan solutions with competitive interest rates as well as convenient repayment plans to suit every student’s financial situation. Canara Bank Education Loan: Canara Bank offers an attractive education loan program designed to help students realize their academic ambitions. By offering attractive rates of interest and various repayment options, Canara Bank ensures financial restrictions do not hinder students’ aspirations to study. They offer loans for different courses both within India and internationally so students can obtain quality education without incurring significant debt. Union Bank Education Loan: Union Bank has long been recognized as an authority on loans for higher education. Their education loan program features competitive interest rates, flexible repayment plans and simple application forms; whether students need aid for undergraduate or postgraduate study – Union Bank provides financial aid. BOB (Bank of Baroda) Student Credit : Bank of Baroda (BOB) offers student education loans to assist them in fulfilling their aspirations to study. With attractive rates of interest and flexible repayment plans available to suit different subject matters – all tailored towards helping you meet your educational goals without financial strain! – it aims to support the academic pursuits of its customers without financial concerns getting in their way. Axis Bank Education Loan: Axis Bank recognizes the significance of education to shaping one’s future, so they offer educational loans tailored specifically for student needs. Boasting attractive rates of interest, quick loan repayment and simple applications processes, Axis Bank provides a seamless experience to those searching for financial aid for higher level studies either locally or overseas. Axis Bank education loan stands out as a reliable financial tool. ICICI Bank Education Loan: ICICI Bank stands out as a leader in education loans by offering comprehensive financial solutions for students enrolled in classes both domestically and overseas. Their educational loan program boasts attractive interest rates, convenient repayment plans and quick approval times for quality education to all those who seek further study. HDFC Credila Education Loan: HDFC Credila, a subsidiary of HDFC Bank, specializes in offering student loans for education financing needs. Their experience and knowledge on financing education enables them to offer customized loans tailored specifically for each student’s requirements with competitive interest rates and flexible repayment terms that make pursuing goals in education less financially straining.

FAQs Q – What are the eligibility requirements to obtain an education loan through Canara Bank? A. A – Canara Bank offers education loans under certain criteria, which includes being an Indian citizen and attending an approved school, along with having someone act as co-applicant or guarantor for your loan application. Q – Does Union Bank offer education loans for overseas courses? A – Union Bank provides education loans for overseas courses, helping students fund their study abroad experience as well as cover any additional costs associated with study. Q – How much is the maximum loan offered through Bank of Baroda’s educational loan programme? A – Bank of Baroda provides education loans ranging in amount depending on your school and course requirements, with specific details provided on their website for good advice in relation to meeting them. It is strongly suggested to visit this webpage to gain exact details in relation to meeting them. Q – Does Axis Bank require specific documents for education loans? A – Axis Bank requires the following documents in order to process applications for student loans: identification proof, residency admission letter, fees structure details and academic records as well as proof of income for both applicant and guarantor. Q – Does HDFC Credila offer flexible repayment plans for their loans to students? A – Yes, HDFC Credila provides flexible repayment plans for its education loans. They can customize them based on each student’s length of education; thus enabling borrowers to select one that meets their financial needs good. https://www.youtube.com/watch?v=JhAgRE7QQAI

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