Planning to take education loan: Here are best loan rates by various banks

A look at student loan interest rate for studying in India and abroad

In an age where the cost of education is soaring, education loans have become the primary financial lifeline for aspiring students.

 

These loans have gained significant popularity among individuals who otherwise may not have been able to afford higher education. A slight change in interest rates makes a lot of difference in the end.

 

So, one should always compare interest rates before taking an education loan. Business Standard has compiled a list of the education loan rates currently offered by various financial institutions.

 

State Bank of India (SBI) is offering interest rates ranging from 8.15 per cent to 11.75 per cent for studies in India and 10.15 per cent to 11.75 per cent for overseas education. 

 

Bank of India provides interest rates between 9.35 per cent and 11.85 per cent for domestic education and 10.05 per cent to 11.85 per cent for international studies. 

 

ICICI Bank has set interest rates at 10.25 per cent onwards for both Indian and overseas education. 

 

Punjab National Bank is offering interest rates ranging from 8.10 per cent to 12.75 per cent for education within India and 9.25 per cent to 12.75 per cent for foreign studies. 

 

Bank of Baroda is offering interest rates ranging from 8.45 per cent to 13.05 per cent for education in India and 9.70 per cent to 13.7 per cent for international education. 

 

Axis Bank is offering interest rates ranging from 13.7 per cent to 15.2 per cent for both domestic and overseas education.

 

Here is a list by Paisabazaar.com on education loans offered by eight banks with loan rates:

 

 

 

Some key factors to consider before applying for an education loan:

 

Loan amount:

 

Determine the total amount you need, including tuition fees, accommodation, books, and other living expenses.

 

Check if the loan amount offered by the lender will cover your entire financial requirement.

 

Interest rates:

 

Compare interest rates from different lenders to find the most affordable option.

 

Consider whether the interest rate is fixed or variable, and how it may change over time.

 

Processing fees and other charges:

 

Be aware of any additional fees such as processing fees, administrative charges, and prepayment penalties.

 

Consider how these fees will affect the overall cost of the loan.

 

Repayment terms:

 

Understand the repayment schedule, including the duration of the loan and the frequency of payments.

 

Check for options such as moratorium or grace periods, where repayment may be deferred until after graduation.