Last Updated on 01/01/2021 by Deepak Singla
Education is a highly valued asset in our lives. So, it is of utmost importance that people who can’t afford it do get it. Education Loans make the same possible. These are a subset of loans that provide financial help to students who need it for higher education in India or abroad. But, there are tons of banks to choose from. Which one would be most suited to you and how to decide that? This article will help you with the same.
Since 2018, you need to apply for education loans via the Vidya Lakshmi Education Loan portal. This is a government-run portal that seeks to help students looking for education loans. How will you know which loan to opt for through this e-government portal? Don’t worry, this article will help you. We have listed down 11 best banks for Education Loan in India. We have included several details about these loan schemes like Education loan Interest, the maximum quantum of loan they offer, and more. Keep reading to find out which loan scheme might be the best for you.
1. HDFC Education Loan
HDFC Bank provides you with several different types of education loans. The repayment period is up to 15 years and the loans are available at decent interest rates. You can also avail of a preferential education loan interest rate if you get admission in the top-ranked colleges. HDFC Education Loan does not have any hidden charges, the documentation is minimal and simple, and you can avail pocket-friendly EMI repayment options. As of now, they offer 3 types of Education Loans: Education Loan for Education in India, Education Loan for foreign education, and Central Government Interest Subsidy Scheme. The last scheme allows you to avail loans at subsidized rates of interest, the interest will be waived off during moratorium period and such loan type can be taken if your gross income annually is below INR 4.5 lakhs. The features of the other two loan types including HDFC Education Loan interest rate are tabulated below:
| Sl. No. | Features | Education Loan for Indian Education | Education Loan for Foreign Education |
| 1. | Loan Principal | Up to INR 20 lakhs. INR 7.5 lakh loan does not need collateral | No Upper Limit (With Collateral)
Up to INR 35 lakhs (Unsecured loan) |
| 2. | Rate of Interest | 9.55% to 13.25% | 9.55% to 13.25% |
| 3. | Repayment tenure | 15 years | 15 years |
| 4. | Collateral | Applicable if you take a loan greater than INR 7.5 lakh | Applicable if you take a loan with no upper limit |
| 5. | Tax Benefits | Rebate in loan interest under Section 80-E of the Income Tax Act 1961 | Rebate in loan interest under Section 80-E of the Income Tax Act 1961 |
| 6. | Processing fee | INR 1000 or 1% of the loan amount (whichever is greater) | – |
2. Axis Bank Education Loan
Axis Bank Education Loan is provided to those students who take admission in career-oriented courses such as engineering, medicine, and management. It covers expenses such as tuition fees, hostel charges, study materials expenses, and other education-related costs. The maximum loan amount they offer is INR 10 lakhs for education in India and INR 20 lakhs for studying abroad.
The features of the same are listed below:
| Education Loan Scheme | Loan Quantum | Interest Rates |
| Education Loan |
|
|
| Education Loan for Girl Student |
|
|
*Base Rate: Currently fixed at 9.95%
3. Vijaya Bank Education Loan
Vijaya Bank is a PAN Indian bank or institution. It has built a reputation for itself over the years. It provides a variety of services along with its educational loans for students who wish to study in India or abroad. The details of Vijaya Bank Education Loan are listed below:
| Features | Details |
| Loan limit |
|
| Rate of interest |
|
| Processing fee | Nil |
| Repayment tenure | IBA scheme:
|
4. Union Bank of India Education Loan
Union Bank is one of the oldest banks in India with an establishment year dating back to 1919. The Union Bank of India Education Loan is designed for all those students who want to pursue higher education: graduation, technical education, professional course, management course, etc. in India or abroad. The following table will give you the details about the same.
| Features | Details |
| Loan Quantum |
|
| Repayment tenure |
|
| Interest Rates |
|
| Processing fee | Nil |
5. SBI Education Loan
SBI Education Loan consists of varied schemes with pretty low interest rates. The repayment tenures of the bank are quite flexible and include a moratorium period after completion of education. There are 5 types of schemes offered under the SBI Education Loan. The details of the same are tabulated below:
| Features | Max. Loan Amount | Interest Rates | Processing fee | Collateral | Loan Tenure | Eligibility |
| SBI Student Loan | INR 20 lakhs | 10/05% | Up to INR 20 lakh- Nil
For loans above INR 20 lakh- INR 10,000 plus taxes |
Loans up to INR 7.5 lakh: None
Loans above INR 7.5 lakh: Tangible collateral |
15 years |
Indian nationals |
| SBI Scholar Loan | INR 40 lakh | 7.95% to 9.25% | Nil | Needed only for List A and List C colleges | 15 years | Indian national selected via entrance tests. |
| SBI Global ED-Vantage | INR 1.5 crore | 10.05% | INR 10,000 | Tangible collateral as security | 15 years | Indian Nationals |
| SBI Skill Loan | INR 1.5 lakh | 9.55% | – | None | 7 years | Indian Nationals |
| SBI Take Over of Education Loan | INR 1.5 crore | 10.05% | Nil | Min. 1% of the proposed loan value | 15 years | Indian Nationals who are switching over their loan |
6. Punjab National Bank Education Loan
PNB Education Loan consists of several schemes at attractive rates of interest. This loan can be availed for education in India and abroad as well. Students who are born abroad but want to pursue higher education in India can also take this loan. The details of the same are given below:
| Education Loan Scheme | Interest Rate | Processing Fee | Collateral | Tenure |
| PNB Saraswati | 7.30% to 9.80% | Nil | Up to INR 7.50 lakh: Guardian or parent needs to be a joint borrower
Above INR 7.50 lakh: In addition to a parent being a joint borrower, tangible collateral security is needed |
15 yrs |
| PNB Pratibha | 7.20% to 7.80% | Nil | Parent or guardian should be a co-borrower | 15 yrs |
| PNB Uddan | 7.30% to 9.80% | 1% of the loan amount (min. of INR 10,000) | Up to INR 7.50 lakh: Guardian or parent needs to be a joint borrower
Above INR 7.50 lakh: In addition to a parent being a joint borrower, tangible collateral security is needed |
15 yrs |
| PNB Kaushal | 7.30% to 8.70% | Nil | Guardian or parent should be a co-borrower |
|
| PNB Honhaar | 9.20% | Nil | Guardian or parent should be a co-borrower | 15 yrs |
| PNB Pravasi Shiksha Loan | 9.20% | 1% of the loan amount (min. of INR 10,000) | Immovable property with 125% value of the loan amount. Guarantors can also give liquid security worth of 125% of the loan amount. | Up to 10 yrs |
7. ICICI Bank Education Loan
ICICI Bank Education Loan will cover all your college and student-related expenses including college fees, exams, etc. It also provides you with Insurance premiums and covers travel expenses. Check out the details here:
| Details | Undergraduate studies | Post-graduate studies |
| Interest Rate | From 11.5% | From 11.5% |
| Maximum Loan Amount | INR 50 lakhs (for studies in India)
INR 1 crore (for abroad education) |
INR 50 lakhs (for studies in India)
INR 1 crore (for abroad education) |
| Loan Tenure | Up to 5 years after course completion | Up to 8 years after course completion |
8. Canara Bank Education Loan
Canara Bank Education Loan includes several schemes to help students pursue higher studies in India and abroad. The details and features of Canara Bank Education loan types are tabulated below:
| Loan schemes | Max. Loan Amount | Interest Rates |
| IBA Model Education Loan Scheme | Need-based |
|
| IBA Skill Loan Scheme | INR 1.5 lakh | 9.35% p.a. |
| Vidya Turant | INr 40 lakh | 7.85% p.a. |
| Vidya Shakti | INR 7.5 lakhs (for degree courses), INR 1.5 lakhs (for a vocational certificate, diploma, and skill loan) | 7.85% p.a. |
| Vidya Shakti | INR 1 lakh | 9.85% p.a |
9. Bank of Baroda Education Loan
Bank of Baroda Education Loan offers attractive interest rates with no collateral requirement for loans up to INR 4 lakhs. The details of the various schemes provided under Bank of Baroda Education loan are given below:
| Loan Scheme | Interest Rate |
| Baroda Vidya | 7.50% to 9.75% |
| Baroda Gyan | 9.25% (including Strategic Premium) |
| Baroda Education Loan to Students of Premier Institutions (For Education in India) | 7.25% to 8.75% |
| Baroda Scholar | 8.50% to 9.25% |
10. Allahabad Bank Education Loan
Allahabad Bank was founded back in 1865 and offers a wide range of financial services. Under its loan section, one of the most popular products is the Allahabad Bank Education Loan. It has been structured as such to meet every need of students. Check out its details below:
| Features | Details |
| Loan Quantum | Up to INR 20 lakhs |
| Processing fee | Nil |
| Repayment method | Up to INR 7.50 lakh: Up to 10 years
Above INR 7.50 lakhs: Within 15 years |
11. Indian Bank Education Loan
Indian Bank is a well-established premier banking name in our country. Indian Bank Education Loan covers a student’s hostel fees, college tuition fees, books, travel expenses, and other student-related costs. The details of the same are listed below:
| Sl. No. | Features | Details |
| 1. | Rate of Interest | 12.50% p.a. with a concession of 0.50% as per the IBA scheme for female students |
| 2. | Loan Margin | Nil up to INR 4 lakhs
Above 4 lakhs, a loan margin of 5% for education in India and up to 15% for foreign education |
| 3. | Loan Quantum | Up to INR 15 lakhs (studies in India)
Up to INR 25 lakhs (studies abroad) |
| 4. | Loan Repayment | Within 10 years for loans up to INR 7.5 lakhs
Within 15 years for loans above INR 7.5 lakhs |
| 5. | Insurance Cover | Provided under ‘New IB Jeevan Vidya’ scheme |
