An education loan is something that plays a role in the academic lives of most college-aged students as well as those who want to pursue studies later in life. It helps those who have the desire to study more but cannot actually afford to do so. In most cases, a study loan is applied for by students who want to do their higher education abroad. A common issuer of an education loan is a bank, but in some cases, this can also be a Fintech company or a non-banking financial company (NBFC). However, banks are the most relied on. For this reason, here are the top five banks that offer the best interest rates and deals on an education loan.
1) Bank of Baroda: The Bank of Baroda offers aspiring applicants up to 80 lakhs on their education loan with an interest rate of 6.75 per cent to 9.85 per cent. The bank does also charge a processing fee, which can be Nil and go all the way up to Rs 10,000 depending on the loan amount. The maximum loan tenure is 10 to 15 years with collateral of 100 per cent tangible security. The loan is available for education from nursery school and upwards. Female students also get concessions on the interest rates.
2) State Bank of India (SBI): SBI offers its customers a loan amount that goes up to Rs 1.5 crore. The interest rate on this loan can be anywhere from 6.85 per cent to 8.65 per cent. The bank charges a processing fee of Rs 10,000 (GST included). The bank can also give out a loan amount of up to Rs 20 lakh on concession rates to female students. The loan tenures can be up to 15 years and collateral of up to 7.5 lakh. The loan moratorium period is 12 months after the course is completed.
3) Bank of India: Students who wish to study in India can get an education loan of up to Rs 10 lakh, while those who want to go abroad, can get a loan of up to Rs 20 lakh for their higher studies. The bank is also quite low in regards to the interest rate it charges on the loan. The interest rate can range from 6.85 per cent to 9.35 per cent.
4) Punjab National Bank: This bank offers candidates of the loan an annual interest of 6.90 per cent to 9.55 per cent against the loan. It also gives a maximum loan amount of Rs 15 lakh with a processing fee that amounts to 1 per cent of the loan amount. The loan has a tenure of up to 15 years and a moratorium of 6 months to 1 year after course completion. A loan can also be issued based on a case-by-case review.
5) Union Bank of India: Loan seekers will get to avail themselves of an interest rate of 8.80 per cent to 10.05 per cent from this bank. The bank will also give a loan on need-based finance. However, it does not charge a processing fee for an Indian student. It does charge a processing fee for NRI students on the other hand. This can be 0.50 per cent of the loan amount plus whatever the tax may be. For NRI students the maximum quantum is Rs 20 lakhs to Rs 30 lakhs for premium institutes. The loan tenure will be up to 15 years (after the course and moratorium period) Irrespective of the quantum of the loan.
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