A number of banks in India offer education loans at attractive rates of interest to students who want to pursue their higher education in India or abroad. These education loans enable deserving students to attain their desired educational qualification without any stress. These loans cover a number of expenses of students during their studies such as education fees, books, hostel fees, travel, examination fees etc. Generally, education loans are offered in specific slabs: Below INR 4 lakhs, between INR 4 lakhs and INR 7.5 lakhs, and above INR 7.5 lakhs.
Here, we have prepared a list of top 10 banks in India, offering education loans to deserving students to pursue their dream education in India or abroad.
State Bank of India
Named SBI Student Loan Scheme, the State Bank of India offers education loan to students to pursue their dream education. The loan is provided to students to pursue technical and professional, graduate and post-graduate degree courses such as MBA, MCA, MS offered by reputed universities. The loan amount up to a maximum of INR 30 lakhs will be provided with collateral security required only for loans above INR 7.5 lakhs. The repayment period varies from 10 years to 12 years depending on the loan amount. The interest rate offered on education loans will be up to 2% on the current base rate of the SBI. Applicants for the loan have to submit the admission letter, loan application form, details of course costs, co-applicant details and other required KYC documents while applying for an SBI education loan.
In comparison to other banks, Axis Bank offers education loans at competitive interest rates for students who are planning to pursue higher studies. It offers a maximum loan of INR 20 lakhs that cover hostel fees, tuition fees, and book costs, etc. The bank offers minimum loan amount up to INR 50,000. The interest rate for Axis Bank education loans ranges from 8.5 % with special rates for women applicants.
Another bank to offer education loan with flexible repayment tenures is HDFC Bank. Through this bank, students can get education loan at their doorsteps for over 950 courses across 36 countries. The maximum loan amount by HDFC Bank is up to INR 20 lakhs. Students in the age group of 16 to 35 years are eligible to apply for an education loan. The processing fees for education loans is up to 1.5% of the loan amount with no fees levied for prepayment of the loan.
Punjab National Bank
Punjab National Bank offers the ‘PNB Saraswati scheme’ and ‘PNB Udaan’ scheme to provide education loan to students who are planning to pursue higher studies. The loan covers university fees, travel, exam fees, lab fees, library fees, book/equipment fees and other related expenses. The bank offers the base rate as the interest rate on loans taken for pursuing education at top 200 universities across the world. An upfront processing fee of 1% has to be borne by the borrowers. The tenure options available for education loan borrowers is up to 15 years. No loan margin is required for education loan below INR 4 lakhs.
Canara bank offers education loans to students to pursue professional and technical courses, graduate and post-graduate courses that promises job opportunities. The education loan covers university fees, travel, exam fees, lab fees, library fees, book/equipment fees and other related expenses. With a loan margin requirement of 15%, the bank offers education loan up to INR 4 lakhs. The bank can sanction maximum loan up to INR 20 lakhs. The repayment tenure is 10 to 15 years depending on the loan amount. Security is not required for loan amounts below INR 4 lakhs.
The IDBI Bank offers education loan to students who are interested to pursue professional and technical graduate courses, post-graduation courses, diploma, and CPA/CIMA courses. The education loan covers university fees, travel, exam fees, lab fees, library fees, cost of computers, book/equipment fees and other related expenses. There is no security requirement for loans taken below INR 4 lakhs. The bank offers maximum loan amount up to INR 20 lakhs. The repayment tenure can be up to 10 years for loans up to INR 7.5 lakhs and up to 15 years for loans above INR 7.5 lakhs.
Bank of Baroda
Students who are applying for professional and technical courses can apply for an education loan from Bank of Baroda. The bank offers education loan to students under the ‘Baroda Scholar’ scheme. The bank offers a maximum loan up to INR 20 lakhs with a loan margin requirement of 15%. Students can repay the loans taken up to INR 7.5 lakhs within 120 months and education loans taken above INR 7.5 lakhs within 180 months.
Another bank to offer education loan to students to pursue higher education is Allahabad Bank. The education loan is offered to students to pursue professional or technical courses in recognized institutions. The quantum of the loan provided by the bank is need-based subject to repaying capacity of the parents or students with a ceiling of INR 20 Lakhs.
Indian Overseas Bank
Under the Vidya Jyoti scheme, the Indian Overseas Bank offers education loan to students who want to pursue professional or technical courses. The loan is offered only for Graduation and Post Graduation Courses offered by reputed universities. The bank offers a maximum loan up to INR 40 lakhs for students to study abroad, and INR 30 lakhs for students to study in India. The repayment period is maximum of 5 to 7 years.