Which Bank has Lowest Interest Rate on Education Loan?

Applying for an education loan seems like the right path when your abroad studying dreams are stuck only due to financial aid and you have not yet secured any scholarships. But these loans come with a heavy interest rate and complex xonditions. So, before signing - know that which bank has the lowest interest rate on education loans for studying abroad.

You cannot ignore the interest rate that the bank applies on your loan's principal amount for studying abroad. These figures can affect your future plans and may ask you to work hard to pay them off, even if these numbers vary in decimels. This article provides you a list of banks that have lowest interest rates on education loans for studying abroad.

Role of Interest Rate in Education Loan

Interest Rate is the amount which the bank charges you on a yearly basis against the education loan you borrow. It decides, how much you will pay to the bank over a time. A lower interest rate means lower EMIs and reduced repayment amount. You can understand this easy calculation by using education loan EMI calculators. You can adjust the interest rate in the EMI calculator and see the difference in the overall payment.

Banks and NBFCs offer loans at two types of Interest rate:

1. Fixed Rate: The EMI remains the same throughout the repayment tenure period.
2. Floating Rate: The interest rate changes based on market conditions and repo rate announced by Reserve Bank of India. It could decrease or increase, making it either beneficial or risky. 

Top Education Loan Providers in India

Other than government and private banks, NBFCs (Non Banking Financial Companies) offer education loans in India. Students who want to study in India or abroad can select the scheme offered by these providers. These education loans typically covers tuition fee, living expenses, travel, and other academic costs. Here is the list of top education loan providers and their benefits.

Here, you should keep in mind that each lender has different terms regarding processing fees, margin money, and repayment periods. It is suggested that compare different education loans before making a decision.

Which Bank Has Lowest Interest Rate on Education Loan?

Below, we have mentioned a table where you can see and compare the education loan interest rates of different banks on study loans. This will help you select the best loan amount based on your needs:

Source: Official Websites of Banks

Tips to Get Education Loan at Low ROI

Students choose to apply under government education loan schemes to reduce the interest burden and avail the benefits. The government has already announced Vidya Lakshmi Education Loan Portal, where students can apply for study loans up to 7.5 lakhs without any collateral. It’s a smart decision to choose government banks, if you want to get low interest rate education loan. However, it is important that you fulfill eligibility for this. Here we have mentioned some tips to get education loan at low interest rates:

• Public sector banks offer lower interest rates than private sector banks.
• Apply under government subsidy schemes to get interest rate concessions.
• Girl students can get up to 0.50% interest rate concession. Make sure to confirm this with the bank.
• Got admission to one of the top universities in the world? Banks may offer you special lower rates.
• Offer collateral to avail secured loans with reduced interest rates.
• Opt for fixed interest rates if the market is currently offering low-ROI loans.
• Negotiate with the bank representative. If you are lucky, you may get special ROI.

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.