Education Loan Interest rate information at Buddy4Study
Education Loan interest rate is an important factor for applicants to decide if the loan scheme is worth the financial load or not. Interest rates of education loan have escalated in the recent times which has made education financing costly. Student loan interest rates keep changing frequently based on government policies. Most of the time, students are not aware of these changes. Lack of information about education loan interest rate subsidy schemes also prevents students from getting the benefits of government schemes.
Among all the key points to consider for education loan, the most important is selecting the right banking institution. Students emphasize over other features of student loans like loan tenure, student insurance, laptop and two-wheeler loans but in the end, it is the interest rate that matters the most. Check out the things to remember while considering interest rate of student loan for any bank.
Students can find most of the education loan interest rate related information on official websites of the bank but that involves searching through numerous websites and compiling all the information. Generally, student loan interest rates are dependent on educational institution and courses, but they are also adjusted for girl children and minority applicants. The generic education loan interest rates are mentioned below:-
Common Education Loan Interest Rates in India | |
Study loan for domestic education | Min: INR 20,000 Max: INR 45,00,000 (45 lakhs) |
Student loan for foreign education | Min: INR 1,50,000 Max: 1,50,00,000 (1.5 crore) |
Study loan interest rate (domestic) | Min: 8.35% Max: 15.8% |
Student loan interest rate (foreign) | Min: 9.7% Max: 16.2% |
Both banking and non-banking financial institutions can provide loan to students of any amount at pre-set interest rates. A list of interest rates for the┬аmost popular student loan providers of the nation regarding both domestic and foreign education is listed below.
Bank Name (student loan scheme name) | Education loan interest rate |
SBI (State Bank of India) | Domestic Study Loan Below тВ╣7,50,000 (7.5 Lakhs): 10.45% Above тВ╣7,50,000 (7.5 Lakhs): 10.70% |
IITs/IIMs/NITs/ISBs/Xaviers/other: 8.75% to 10.05% | |
Study Abroad Loan Amount between тВ╣20,00,000 (20 Lakhs) to тВ╣1.5 Crore: 10.80% | |
PNB (Punjab National Bank) | Domestic Loan Below тВ╣7,50,000 (7.5 Lakhs): MCLR + 1.50% Above тВ╣7,50,000 (7.5 Lakhs): MCLR + 2.60% |
IITs/IIMs/NITs/ISBs/Xaviers/other Below тВ╣7,50,000 (7.5 Lakhs): MCLR + 0.60% to MCLR + 1.50% Above тВ╣7,50,000 (7.5 Lakhs): MCLR + 0.10% to MCLR + 2.60% | |
Study Abroad Loan Below тВ╣7,50,000 (7.5 Lakhs): 10.03% Above тВ╣7,50,000 (7.5 Lakhs): 11.05% | |
Canara Bank | Domestic Study Loan Below тВ╣7,50,000 (7.5 Lakhs): MCLR + 2.00% Above тВ╣7,50,000 (7.5 Lakhs): MCLR + 1.80% |
Foreign student loan Below тВ╣7,50,000 (7.5 Lakhs): MCLR + 2.00% Above тВ╣7,50,000 (7.5 Lakhs): MCLR + 1.80% | |
Axis Bank | Domestic & Foreign Study Loan Below тВ╣4,00,000 (4.0 Lakhs): 15.20% From тВ╣4,00,000 (4.0 Lakhs) to ┬атВ╣7,50,000 (7.5 Lakhs): 14.70% Above тВ╣7,50,000 (7.5 Lakhs): 13.70% |
HDFC Bank | Domestic & Foreign Student Loan Below тВ╣4,00,000 (4.0 Lakhs): 10.25% to 12.25% Above тВ╣4,00,000 (4.0 Lakhs): 10.25% to 15.00% |
ICICI Bank | Minimum (Domestic/Abroad): MCLR + 2.4% Maximum (Domestic/Abroad): MCLR +4.65% |
MCLR is the marginal cost of fund based lending rate which is used as the regulated interest rate at which banks can provide loan services. Student loans are based on these rates for most banks and thatтАЩs how students are able to keep track of the exact rates with the passing years.
MCLR rates are revised by the Reserve Bank of India on a monthly basis. Furthermore, IBA (Indian Banking Association) allows banks to revise their student loan interest rates every six month. So the additional spread that is charged above MCLR rates is what students need to know for selecting a study loan service.
MCLR rates for all the banks in India that provide study loans are listed below:
Banks List | Allahabad Bank | ANDHRA BANK | AXIS BANK | Bank of Baroda | Bank of India | Bank of Maharashtra | Canara Bank | CENTRAL BANK OF INDIA | Corporation Bank | Dena Bank | Dombivli Nagari Sahakari Bank Limited | Federal Bank | GP PARSIK BANK LTD | HDFC BANK | ICICI Bank | IDBI Bank | Indian Bank | Indian Overseas Bank | Karnataka Bank Limited | KARUR VYSYA BANK | KOTAK MAHINDRA BANK LIMITED | New India Cooperative Bank Limited | ORIENTAL BANK OF COMMERCE | Pragathi Krishna Gramin Bank | Punjab And Sind Bank | Punjab National Bank | RBL Bank Limited | State Bank of India | Syndicate Bank | Tamilnad Mercantile Bank Limited | UCO BANK | Union Bank of India | United Bank of India | VIJAYA BANK | YES BANK |
MCLR | 8.55 | 8.7 | 8.8 | 8.65 | 8.65 | 8.75 | 8.7 | 8.6 | 8.95 | 8.6 | NA | 9.2 | NA | 8.7 | 8.7 | 8.95 | 8.7 | 8.75 | 8.95 | 9.65 | 9 | NA | 8.75 | NA | 8.8 | 8.5 | 10.15 | 8.5 | 8.8 | 9.2 | 8.65 | 8.65 | 8.85 | 8.75 | 9.8 |
Did you know┬аthat you could repay your education loan using scholarships and fellowship awards?
Banks allow applicants to settle the margin payment of their student loan with scholarship awards. ThatтАЩs how many students all over the nation are able to pay for their education (especially for study abroad).
Student loans are not affordable for everyone, especially in the environment of rising interest rates. Still, in order to motivate students to pursue higher education with loans, subsidies and tax benefits are provided to applicants/co-applicants. These benefits help┬аstudents repay their loans as early as possible, thereby, reducing the burden of interest payment. Such benefits also prevent student loans from turning into NPA (Non-Performing-Assets or bad loans) which keeps the education loan industry regulated.
Subsidy on study loan means a benefit which allows students to compensate the expenditure done to repay the loan. Various government policies and private bank schemes provide interest rate benefits to student loan applicants. Education loan subsidy is generally provided in the form of interest rate compensation as per the norms of the Central Government and RBI. This subsidy means a complete/partial-compensation/cashback of interest paid during the course duration of the applicant.
Provided by: Ministry of Human Resource and Development, Government of India
Subsidy eligibility:
Benefits:
Provided by: Ministry of Social Justice and Empowerment, Government of India
Subsidy eligibility:
Benefits
Provided by: Ministry of Minority Affairs, Government of India
Subsidy eligibility:
Benefits
Education loan interest subsidies are additional offerings provided by the banks as per the Central Government guidelines. There are other subsidy schemes as well which are provided under special circumstances to loan applicants based on different parameters. These parameters might include education loan interest rate subsidy for girls, subsidy for disabled applicants, subsidy for minorities, etc.
Key points to remember while applying for education loan interest rate subsidy:-
Steps to apply for Education Loan interest rate subsidy
Did you know that you could apply for education loans that cover examination charges (like SAT exams, LSATS, GRE, GMAT, TOEFL, IELTS etc.) and expenses of research studies as well? Many banks provide studentsтАЩ expenses which exceed the conventional limits of just tuition fees. To find more details about such education loan facilities visit the website of Buddy4Study EduLoans.
Study Loan applicants and co-applicants can avail tax benefits on interest paid. The interest, thus, paid on loan can be deducted from the total taxable income of one individual (applicant or co-applicant) who is paying the EMIs of the education loan. Some peculiar points related to tax benefits on education loan interest rate are:
The process to avail the deduction for interest paid against student loan is no special. The deduction can only be claimed by an individual and not a corporation or business. The process goes just like claiming any other deduction under income tax returns. The short steps to avail this tax deduction are:
Now that you know about the education loan interest rates, all that remains is for you to gather information about eligibility criteria for education loan and repayment process. Proper information about student loan application process also helps in getting the loan within a short period of time. Students can check out all these information including details of domestic and international scholarships at Buddy4Study. The financial needs and limitations cannot be the factor to stop one from attaining better education. With numerous financing options available and a good academic effort students can achieve the kind of glorious career they aspire for. At Buddy4Study we know that will all this information and a little diligent effort students can achieve their academic and career dreams. Happy learning!
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