Which Bank has Lowest Interest Rate on Education Loan?
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Getting an education loan for abroad studies is nothing less than a boon for many Indian students. It can save lakhs of rupees that they would otherwise pay at the time of repayment. Keep in mind that education loan providers in India offer multiple schemes with different terms and conditions. So, it is advisable to compare different loan schemes before selecting one.
To pursue higher education abroad, you need to have a strong bank balance. From tuition fees to living expenses, everything is more expensive than in India. Also, not every student is lucky enough to receive a scholarship to study abroad. In such cases, student loan becomes the only help for pursuing higher education abroad. Borrowing an education loan for abroad studies can not only finance manage your study-related expenses but also ease your financial stress.
Interest rate is an important factor when choosing the best education loan for yourself. Even a small difference in the rate of interest (ROI) can significantly impact the overall repayment amount. So, it is important to select a bank that offers an education loan with a low ROI.
Keep in mind that education loan providers in India offer multiple schemes with different terms and conditions. In this article, we’ll help you understand which banks offer the lowest interest rates on education loans in India. We will also cover some useful tips, government subsidies, and more.
- Role of Interest Rate in Education Loan
- Top Education Loan Providers in India
- Which Bank Has Lowest Interest Rate on Education Loan?
- Tips to Get Education Loan at Low ROI
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.
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Banks and NBFCs offer loans at two types of Interest rate:
- Fixed Rate: The EMI remains the same throughout the repayment tenure period.
- 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 cover tuition fees, living expenses, travel, and other academic costs. Here is the list of top education loan providers and their benefits.
| Banks in India |
Loan Amount Range |
|---|---|
| State Bank of India (SBI) |
Up to INR 1.50 crore in loans, with a minimum loan amount of INR 7.50 lacs |
| HDFC Bank |
The minimum loan amount stands at Rs 1,00,000 and no upper limit has been set by HDFC Credila on the loan. |
| Punjab National Bank |
From INR 7.50 Lakhs to INR 1.00 Cr |
| Bank of Baroda |
From INR 7.50 Lakhs to INR 1.50 Cr |
| ICICI Bank |
The maximum loan amount is INR 3.00 Cr |
| Union Bank of India |
INR 4.00 Lakhs to 1.5 Crore |
| Axis Bank |
No maximum amount, starting at INR 50,000, and covering up to 100% of the whole cost of study |
| Avanse Financial Services |
Up to 100% of the university tuition fee and other expenses related to studies. |
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:
| Education Loans in India |
Education Loan Interest Rates in India to Study Abroad |
Processing Fees |
|---|---|---|
| SBI Education Loan |
11.15% |
INR 10,000 |
| HDFC Education Loan |
12.50% |
1% or ₹1000, whichever is higher. |
| ICICI Bank Education Loan |
Current REPO Rate+3.75 |
Upto 2% + GST |
| AXIS Bank Education Loan |
13.70% |
2%+ GST |
| Canara Bank Education Loan |
15% |
0.5% of Total Amount |
| 7.90% to 12.90% |
Zero processing fees on collateral-free education loan |
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.
Well, that’s all for the topic. We hope that we have covered every possible query related to the topic. However, if we missed anything, we will be happy to answer your query.
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.
At the University of Lancashire, international students can choose between over 350 undergraduate and around 200 postgraduate programs offered in leading fields of study. According to the historical data of the university's alumni, some of the most popular Lancashire University courses are:
Note: In the above pie chart, Others include Mathematics, Criminal Justice/Safety Studies, American/US Law/Legal Studies/Jurisprudence, Human Resources Management/Personnel Administration, and Organizational Leadership.
If you are an international students applying for an UG or PG program available at the University of Lancashire, you can go through the various type of scholarships teh university provides and check their eligibility whichever suits you best. For example, the Ashwin Kagadia Scholarship helps high achieving studets from low income households and offers need based scholarships. Other example includes, the Care Leaver Bursary which supoorts students who have been estanged from their parents. Check out below UCLan Scholarships for international students:
Undergraduate Scholarships:
Scholarships | Eligibility |
|---|---|
Ashwin Kagdadia Scholarship | Supports high-achieving students from a low household income. |
Care Leaver Bursary | Students who need extra support because they have been in care or are estranged from their parents. |
Care-experienced and Estranged Student Graduation Bursary | Support students who are care-leavers or estranged from their family, to transition to employment of postgraduate study |
Carers Bursary | Provides extra support because you have unpaid caring responsibilities alongside your studies. |
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University of Lancashire accepts country-specific qualifications from overseas applicants. Indian candidates who wish to pursue their higher studies from the university, must meet the University of Lancashire admission requirements for Indian students listed below:
Undergraduate Requirements:
Graduate Requirements: