Discover your dreams of education and finding ways to fulfil them is an achievement for everyone. Student Education Loan is a great source of financial help that offers to students to achieve their academic goals. Student loans can be accepted for courses in India & Abroad too.
All About Student Educational Loans In Abroad & India For 2024
Above provided guides on education loan cover information right from definition to application process along with repayment and more. Simply click on the respective guide that you require & collect the necessary documents for applying for a student loan.
Why Take An Education Loan?
If you belong to EBC or another low-income based family then pursuing your dream course can be difficult. To overcome such problematic situations and to give education to everyone various lenders from government and private have come up with student education loan schemes.
Availing of education loans is beneficial to parents and students to pursue higher education in top colleges/universities/institutes either in India or abroad. With too many features and benefits an education loan will support you in studying higher studies.
Not only middle-income group people can avail of these study loans even many high range income group people are also opting for a study loan to avail of those offered benefits. The reasons to take an education loan are many but a few of them are as follows:
- It’s a big chance to help parents by taking their financial responsibilities and maintaining their family savings.
- Making a good credit history
- Income Tax benefits under IT Act Section 80E.
- Fastly rising education costs.
List Of Recent Student Loan Interest Rates By Banks 2023
A student can now get a reasonable ROI of an education loan. Student Loan ROI can get varied on various factors such as lending institutions, loan amount, repayment tenure, borrower’s credit profile, collateral, candidate selected course, Chosen college/institute/university, etc.
The following information covers loan schemes and their interest rates by the major public and private sector banks of India.
Axis Bank
| Education Loan | Interest (%) |
| All Category | 13.70% to 15.20% |
Bank of Baroda
| Education Loan | Interest (%) |
| Baroda Vidya | 12.45% |
| Baroda Gyan | 11% to 11.10% |
| Baroda Scholar | 10.35% to 11.10% |
| Baroda Loan – Premier Institutions | 9.10% to 10.15% |
Bank of India
| Education Loan | Interest (%) |
| Star Education Loan – India | 9.95% to 10.75% |
| Star Education Loan – Abroad | 9.95% to 11.60% |
| Star Vidya Loan | 8.25% |
| Star Progressive Education Loan | 9.95% |
Bank of Maharashtra
| Education Loan | Interest (%) |
| Model Education Loan | 10.70% to 11.05% |
| Maha Scholar Education Loan | 9.20% to 10.20% |
| Maha Scholar Overseas Education Loan | 10.30% |
Canara Bank
| Education Loan | Interest (%) |
| Vidya Sagar Loan | 10.85% to 11.25% |
| Vidya Turant – Premier Institutions | 9.25% to 9.85% |
| Education Loan – Abroad Institutions | 10.85% to 11.35% |
| Vidya Sahay Scheme | 11.25% (Up to INR 1 lakh) |
Punjab & Sind Bank
| Education Loan | Interest (%) |
| IBA Model Education Loan Scheme | 9.30% to 11.60% |
| PSB Excellence Education Loan | 9.10% to 9.30% |
Punjab National Bank
| Education Loan | Interest (%) |
| PNB Saraswati – India and Abroad | 11.25% to 12% |
| PNB Kaushal | 10.25% to 10.75% |
| PNB Pratibha | 8.55% to 10.50% |
| PNB Udaan – Abroad | 10.75% to 11.50% |
| PNB Honhaar | 11.25% |
State Bank of India
| Education Loan | Interest (%) |
| SBI Student Loan Scheme | 10.90% |
| Scholar Loans | 8.30% to 9.80% |
| Takeover of education loan | 10.90% |
| SBI Global Ed-Vantage (Abroad) | 10.90% |
| Shaurya Education Loan (Defense) | 10.90% to 11.50% |
South Indian Bank
| EDUCATION LOAN | INTEREST (%) |
|---|---|
| SIB-EDUSUM | 16.70% to 17.45% |
| SIB Excellence | 10.55% to 11.15% |
| SIB Global Education | 12.90% to 13.65% |
Central Bank of India
| Education Loan | Interest (%) |
| Cent Vidyarthi | 10.65% to 11.25% |
| MBA loan to executive | 8.30% |
City Union Bank
| Education Loan | Interest (%) |
| CUB Vidyavani | 16% to 17.50% |
| CUB Vidhyavani (Management) | 16.50% to 17% |
Federal Bank
| Education Loan | Interest (%) |
| Federal Bank Education Loan | 12.55% onwards |
ICICI Bank
| Education Loan | Interest (%) |
| Education Loan | 9.50% onwards |
IDBI Bank
| Education Loan | Interest (%) |
| Non-vocational Courses | 10.60% to 11.10% |
| Vocational Courses | 11% |
IDFC First Bank
| Education Loan | Interest (%) |
| All Category | 9% to 15% |
Karur Vysya Bank
| Education Loan | Interest (%) |
| All Category | 11.20% to 13.70% |
Kotak Mahindra Bank
| Education Loan | Interest (%) |
| All Category | Up to 16% |
Tamilnad Mercantile Bank
| Education Loan | Interest (%) |
| TMB Education Loan | 12.15% to 12.40% |
Note: Above loan interest rates can be altered as per the banks terms and conditions so remember to cross-check the ROI of the selected loan scheme from the banks’ website before moving forward to apply for the loan.
Education Loan EMI Calculator
This EMI calculator is one of the best tools that help students to check their monthly payments and how much the total loan price will be after applying for an education loan. The tool simply asks for a few loan-related details like the loan amount. ROI, tenure & processing expenses for displaying an estimated amount of equivalent monthly installment (EMI).
Yearly, banks or other lenders will permit the applicants to make partial prepayments on your loan. Are you excited to get such payments? Surely use the online Education loan EMI Calculator and know how much money is going to preserve on interest and how much time it takes to pay off your obligation.
Things to Consider Before Applying for Education Loan
Below are a few important points to be aware of and considered before your education loan application process begins:
- Some of the banks offers concessions on interest rates by checking their credit score.
- Borrowers of education loan can get tax exemption under section 80E.
- Also, some banks provides up to 1% concession in ROI, when customer paid full amount of interest while study period.
- CGFSEL, Dr Ambedkar central scheme on education loans, Padho Pardesh Scheme are central government schemes that offer subsidies on ROI charged on the loan amount.
- Moreover, some banks charge extra interest as a risk premium when the lender has not received any credit life insurance, which says liabilities are settled after the insurer’s death.
FAQs on Student Education Loans in India & Abroad
- Can I take an education loan as a student?
Yes, an education loan can be taken by any student in India to pursue their higher education in top institutes of India or Abroad.
- What is the limit of student education loans?
The maximum limit of student education loans is Rs.150.00 lakh for studying abroad and Rs.125.00 lakh for studying in India.
- How can I repay my education loan?
Students who took loans for studies can repay their loans in various modes like By Cheque/DD (Demand Draft repayment), By cash, or By Automated EMI payments (ECS/NACH).
- Can banks increase my education loan tenure?
Yes, banks will increase the tenure of your education loan when the course is extended by the college/university/institute.
- What are the latest RBI Guidelines for Education Loan?
The latest guidelines for education loans by RBI desire to offer many benefits for borrowers like flexible repayment options, transparent loan repayment schedules, handling ROL based on RLLR, or MCLR, simplifying the application process, and promoting the use of technology in the loan application process.
Final Words
By the end of this guide, you will be able to find the complete information on the India or Overseas Student Education Loan. If not, let us know what are the missed topics on education loans in the below comment section so that our authors immediately work on it and provide updated information too.
Meanwhile, take a look at the www.advanceeducationpoint.com website for a better understanding of student loans, academics, central and state board study resources, etc.