Which bank is best for Education loan?

personal loan
How to get a Personal loan with Bad-Credit?
December 3, 2021
cibil score
What credit score I need to get personal loan?
December 13, 2021

Which bank is best for Education loan?

What is an Education loan?


Education loans are intended to finance educational need of the students. Leading banks in India offer educational loans to help achieve academic dreams of the student group. These loans are offered mainly for higher education in India as well as abroad. However you can also apply for an education loan starting from Nursery.

Documents required for an Educational loan:


  • KYC documents including Adhaar card, PAN card, voter ID.
  • A six-month bank statement or passbook.
  • Beneficiary Agreement (optional).
  • A photocopy of the Institution's acceptance letter, as well as the cost structure.
  • S.S.C., H.S.C., and University degree result sheets / graduation credentials

Best Banks in India who provide Education loan:


Here we have listed out the biggest banks and their charges along with other details:

1. State Bank of India:
The largest joint stock bank in India grants educational loans for various courses which includes technical, professional, Post-graduation and degree courses like MCA, MBA, from reputed college and universities in India. Under Scholar loan scheme the bank grants loans for students on the basis of merit to study in the premier institutes like IITs IIMs and NITs. It also offers loans up to Rs 1.5 cr. for study in abroad under the SBI Global Ed-vantage Scheme.

Loan Amount (in Rs.)

Effective Interest Rate

Interest Rate Type

7.5 Lakhs to 40 lakh

6.85% to 8.15%

Floating

20 lakhs to 1.5 cr. for Abroad study*

6.85%

Floating

*Processing Fee of Rs. 10,000
2. Punjab National Bank:
The second largest bank in the public sector offers more than 8 schemes to aid academic and skill development courses in India. It also provides financial assistance for studying technical and professional courses in India as well as abroad. Few notable schemes offered by the bank include PNB Prabashi Shiksha loan, PNB Saraswati, PNB Pratibha, PNB Udan, etc. Few schemes do not specify the upper and lower limit of borrowing as these schemes will offer as per need and repayment capacity of the borrower, whereas schemes that specify the limit provides aid up to maximum of Rs. 10 lakh

Scheme

Loan Amount

Interest Rate

Honhaar

Need Based Upto Rs 10 Lakh

Repo Linked Lending Rate (RLLR + 2%)

Prabashi Siksha Loan

Need Based

RLLR + 2.15%

Kaushal

Up to 1.5 lakh

RLLR+1.50%

Udan

Up to Rs.7.50 lakhs
above Rs.7.50 lakhs
Irrespective of Amount

(With 100% tangible collateral security)

RLLR + 2.00%

RLLR + 2.75%

RLLR + 2.00%

SARASWATI

Up to Rs.7.50 lakhs
above Rs.7.50 lakhs
Irrespective of Amount

(With 100% tangible collateral security)

RLLR + 2.00%
RLLR+2.75%
RLLR+2.00%

3. Axis Bank:
The bank offers one scheme as Education Loan which has many sub-variants for domestic study as well as for study in abroad. Most of the loan offers are unsecured loans, which mean you don’t have to give an collateral as security and have a repayment period up to 10 or 15 years. These sub variants are as follows.

Loan Amount

Interest Rate

Up to 4 Lakhs

15.20%

Loans greater than Rs. 4 Lakhs and up to Rs. 7.5 Lakhs

14.70%

Loans greater than 7.5 Lakhs

13.70%

4. HDFC Bank:
This bank also offers education loans to study in India and abroad. It provides loan for a maximum amount of Rs. 20 lakh for education in India whereas, there is no specified limit of maximum loan amount for study in abroad. Such loans are provided for a maximum period of 15 years and the amount of loan is disbursed directly to the institution. Rate of interest applicable for available schemes are as follows:

Scheme

Interest Rate

Loan for education in India

9.25% to 13.68%

Loan for education in abroad

9.25% to 13.68%

5. ICICI Bank:
ICICI Bank offers educational loan up to Rs 50 lakhs for studying domestic courses and up to Rs 1 Crore for International courses. Both secure and unsecured loans are available for various UG and PG courses. The interest rate for educational loan ranges from 8.75% to 12.25%. You need not have to provide any collateral for educational loan from ICICI bank up to Rs 20 Lakh for UG Courses and Rs 40 Lakh for PG courses at selective premier institutes.

Leave a Reply

Your email address will not be published. Required fields are marked *