How to Get Education Loan at Low Interest Rate
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It is well known that government banks offer education loans at low interest rates, but few people know how to secure affordable student loans from any bank or NBFC. Here are some practical tips that have helped many students borrow money at much lower interest rates.
Rohan (an imaginary name) is a student who wants to study abroad but has no budget to fund his higher studies. He applied for several scholarship programs, hoping for financial assistance, but received no response. Then he decided to apply for an education loan. Rohan researched this well and found that the interest rate on student loans is high. So, he decided to explore tips and tricks to secure education loan at low interest rate for studying abroad.
You are just like Rohan. Many students in India want to pursue higher education abroad. Expensive fees and high interest rates on study loans push them to put their dreams on hold. Well, there are some ways by which you can reduce the interest rate on your student loan. In this article, we will discuss all those practical tips to get an education loan at low interest rate. This will help you finance your education smartly and affordably.
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Tips to Secure a Low-Interest Education Loan for Study Abroad
Securing a low-interest education loan for your overseas education is directly related to saving money. It requires careful planning and extensive research. A good credit score, admission to a reputed university, and applying for government education loans are some of the best ways to lower interest rates and minimize borrowing costs.
Here, we have mentioned 8 most common but lesser known tips to securing a low-interest education loan. These tips will help you to save lakhs on your interest repayment.
- Opt for a Secured Study Loan: Choose to apply for an education loan with collateral. This will cover the loan amount and bank will offer you lower interest rate loan.
- Maintain a Good Credit Score: If you have a good credit score, then it’s an advantage. A CIBIL score of more than 750 is considered good. It shows that you treat your money well.
- Choose a Reputed University & Course: It is well known that pursuing a high-demand course or studying at a top-ranked university increases your chances of securing a low-interest education loan. Lenders consider students from reputed institutions as lower-risk borrowers, making it easier to get better loan terms and lower interest rates.
- Apply with a Co-applicant: A co-applicant with a good CIBIL score can make you eligible for education loan at low interest rate.
- Compare Lenders: Doing extensive research and comparing different lenders helps you find the best student loan with lower interest rates.
- Check for Government Schemes & Subsidies: The State and central government offer interest-free education loans. Students can check such kind of government schemes to reduce their loan burden and secure better repayment terms.
- Negotiate with the Lender: It’s the most important tip that you should use. If your negotiating skills are great, then you can secure a lower interest rate. Sometimes a lender’s representatives have the authority to reduce your low ROI.
- Consider Balance Transfer Options: If you found a lender who is offering lower interest rate after taking a loan, you can opt for a balance transfer to reduce your repayment burden. National Banks and NBFCs provide loan transfer options, helping you save money on interest and making repayment easier.
Why an Education Loan at Low Interest Rate Matters?
USA, UK, Canada and Germany are some of the best countries to study abroad. Their top universities and reputed education systems are prior reasons behind this. However, the cost of living and studying is expensive than in India. You need lakhs or even crores to fund your studies. Borrowing an education loan at a high-interest rate can become a financial burden, making repayment challenging. Understand this in a point-wise explanation, mentioned below:
- Lower EMI Payments: A low interest rate means you will pay lower monthly installments.
- Faster Loan Repayment: Lower interest rates allow you to clear your education loan faster without excessive financial burden.
- Less Overall Interest Paid: You will save a significant amount of money.
Related Reads:
Factors to Decide ROI of Education Loan
- Type of Loan (Secured vs. Unsecured): The interest rate of secured loan is lower than unsecured loans.
- Credit Score & Financial History: With a good credit history and score, there is a high chance that you will get a loan at a lower interest rate. 750+ CIBIL score is considered a good score.
- Co-Applicant’s Financial Strength: If you have a financially stable co-applicant (parent/guardian), the education loan provided may offer lower interest rates.
- University & Course Reputation: If you have secured your admission in one of the best universities in the world or high-demand courses, then banks will offer you interest rates due to better job prospects.
- Lender Type (Banks and NBFCs): Public sector banks offer education loans with lower ROI than private banks.
Types of Education Loans
Banks and NBFCs offer study loans to students for studying abroad with different terms and conditions. They offer two types of education loans: secured loans and unsecured loans.
- Secured Education Loans: Such type of study loan requires collateral. You need to pledge something such as property or fixed deposits to banks. The best thing about such loans is that they have lower interest rates. They are ideal for students who can provide security to reduce borrowing costs.
- Unsecured Education Loans: These loans do not require collateral and come with higher interest rates. Banks offer a limited amount to students, and the approval is based on factors like the student’s academic profile, university ranking, and more.
It is known to all that low-interest education loans reduce the financial burden and make overseas education affordable. It is always suggested to compare the study loans offered by different lenders and their schemes.
Apply for secured study loans and choose reputed universities. With proper planning and informed decision-making, you can successfully secure an education loan at a lower interest rate and achieve your dream of studying abroad.
Education Loans By Other Banks
| Axis Bank Education Loan | ICICI Bank Education Loan |
| Bank of Baroda Education Loan | Avanse Education Loan |
Want any expert guidance? Contact India’s leading education loan providers through Shiksha Study Abroad. For more queries. Do write to us in the comments below. Or request a call back from our Shiksha Study Abroad Counselling Services.
After applying to Hertfordshire University UK, the applicants are going to receive an initial decision about their application within 2-3 working days. After the submission of the application and documents, the applicants are required to pay their tuition deposit. Then, complete the Sponsorship interview and the financial declaration. International students are required to pay a deposit of £5,000 before registration. The balance can be paid in line with the liability dates related to the year and entry of the semester.
With a 70% acceptance rate, the University of Hertfordshire is not hard to get into and follows easy selection criteria during admissions. This does not mean the university accepts all the students applying for different programs. The selection is based on academic performance, English language requirements, references, and many more. Some of the programs at Hertfordshire even demand an experience of 4-5 years. Students must fulfill the eligibility criteria to enroll in any programme at Hertfordshire University. In addition, students with average performance can showcase their relevant experience or extracurricular activities participation to increase their selection probability.
International students whose native language is not English must meet the University of Essex English language requirements to get admission. The university accepts IELTS scores as proof of English language proficiency. Mentioned below are the IELTS scores required for UG and PG admission at the university:
English Language Test | Score |
|---|---|
IELTS | Overall score of 5.5 to 8.0 with minimum of 5.5 to 7.5 in each section |
The university also accepts the score of other English language tests such as TOEFL and PTE for admission to undergraduate and graduate programs:
English Language Test | Score |
TOEFL iBT | Overall score of 72 to 114 |
PTE | Overall score of 59 to 84 with minimum of 59 to 80 in each section |
Also read: Required IELTS Score for UK Universities
Bangor University (UK) offers an affordable MBA programme for international students. The below table includes the complete first-year package to study MBA program:
Fees components | Amount (for 1 year) |
Tuition & fees | INR 19,26,441 |
Hostel & Meals | INR 5,67,511 |
Total approximate fees | INR 24,93,952 |
Also read MBA in the UK Cost in 2024
The application process at the University of Manchester may vary depending on the course and level of study. However, here is the application process for UG and PG courses:
The Undergraduate Application Process:
Step 1: You can apply through the UCAS common application portal.
Step 2: Go to the website and select the course you are interested in.
Step 3: Ensure you meet the Entry requirements (Academic qualifications, English proficiency, etc.
Step 4: Once you decide on the course, submit documents such as SOP, Transcripts and personal statements.
Check out: tips to improve your SOP.
Step 5: You can track the application's progress through your given credentials by UCAS.
Step 6: Once the applicant submits the application to UCAS, it forwards to the University, and the admission teams carefully analyse the application document.
Step 7: The university will send you an offer letter once selected. Hence keep checking your UCAS portal for your application status.
The Postgraduate application process:
Step 1: Select the postgraduate course you are interested in from the University of Manchester.\
Step 2: Ensure you meet the entry requirements for the chosen program, as they vary depending on the course.
Step 3: Complete the online application by providing your personal information.
Step 4: Upload the required documents, such as Academic transcripts and proof of English language proficiency ( TOEFL/ IELTS). experience in your fields and references (depending on the course). You also may require Two LORs depending on the course.
To make your admission better, check out the following: How Admission Officers Evaluate your application.
Step 5: If your application is successful, you will receive an offer from the University of Manchester.
The English language test score required at the Univerisyt of South Wales are mentioned in the table below for the international applicants whose first language is not English
Exam | Minimum Scores |
|---|---|
IELTS | 6.0 with at least 5.5 in each band |
TOEFL | 72 overall and a minimum of 18 in reading, 17 in listening, 20 in speaking and 17 in writing |
PTE | a score of 59 overall and 59 in each component. |
Those who are preparing for the UK Class 10 exam 2025 are recommended to follow the tips below.
- Know the exam pattern
- Make a proper time table as per the syllabus
- Solve previous year question papers
- Make short notes of important formulas and theorems
- Revise regularly
- Figure out weaker areas and learn them well
With proper planning and hard work, students can easily clear the UK 10th board exam.
Raj Vimal has experience of 7+ years in SEO Content Writing, which includes 5+ years in the Ed-Tech industry. He has written articles about studying abroad, especially in the USA, UK, and other English-speaking coun... Read Full Bio
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The University of Manchester acceptance rate is 27% for international students, which means admissions are highly competitive. Out of 100 applicants, only 27 are admitted to the university. This also shows that the university has particular standards for admission, and potential students should be prepared for admission. Early applicants can primarily benefit as it gives students a better chance of acceptance. Therefore, international applicants who wish to study at the University of Manchester must have a good acdemic profile.