Education Loan Interest Rates In India? Education loans are offered by leading banks in India to help students achieve their educational dreams.
The loan is taken to meet tuition fees, hostel fees, and other related expenses to pursue a specified educational course in an institution called an education loan.
The Education interest rates start from 7.30%. Education loans are offered for higher education both in India and abroad with a loan tenure of up to 15 years.
Which courses are eligible for education loans will decide by the lender. You can get an education loan to start studying from the nursery. For higher studies, you can get loans for full-time courses as well as part-time courses and loans for working professionals.
Banks issue a list of permitted courses and institutes for which they will give education loans. Therefore, the course you want to do is in the list of the bank, the institution you want to join, after that you can apply for an education loan.
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Here is some bank provides Best Education Loan Interest Rates In India as followed.
Education Loan Interest Rates In India
| Bank | Education Loan Interest Rates In India | Education Loan Interest Rates In Abroad |
|---|---|---|
| Avanse DHFL | 12.65% | 12.65% |
| Axis Bank | 13.70% | 13.70% |
| Bank of Baroda | 7.70% | 8.35% |
| Bank of India | 9.05% | 9.05% |
| Bank of Maharashtra | 8.55% | 8.55% |
| Canara Bank | 8.50% | 8.50% |
| Central Bank of India | 8.50% | 8.50% |
| Corporation Bank | 8.80% | 8.80% |
| Federal Bank | 10.05% | 10.05% |
| IDBI Bank | 8.40% | 8.40% |
| Indian Bank | 7.15% | 7.15% |
| Indian Overseas Bank | 10.65% | 10.65% |
| Karnataka Bank | 9.83% | 9.83% |
| Karur Vysya Bank | 10.75% | 10.75% |
| OBC | 10.65% | 10.65% |
| PNB | 10.65% | 10.65% |
| SBI | 8.80% | 8.80% |
| UCO Bank | 9.30% | 9.30% |
| Union Bank of India | 8.40% | 8.05% |
| United Bank of India | 10.65% | 10.65% |
Education Loan Eligibility
1. Nationality
- Indian citizens
- Non-Indian Residents (NRIs)
- Overseas Citizens of India (OCI)
- Persons of Indian Origin (PIOs)
- Students born to Indian parents abroad and wish to study in India
2. Courses
- Undergraduate programs
- Postgraduate programs
- Doctoral courses and PhDs
- Certificate courses with 6 months or longer duration
- Job-oriented courses
- Technical/diploma/professional courses
3. Institutes
- Recognized institutions and government colleges
- Private institutes aided by government
- Professional institutions
- International colleges and universities
4. Age of the Applicant
- Up to 35 years for non-employed personnel
- Up to 45 years in case of working employees/ executives
5. Maximum Loan Amount
- Typically up to ₹ 10 Lakh for studies in India; with minimum margin money (own contribution by student/ family) of 5% of the total cost
- Typically up to ₹ 20 Lakh for studies abroad, some banks offer up to ₹ 30 Lakh with minimum margin money (own contribution by student/ family) of 15% of the total cost
- Up to ₹ 30 Lakh for studies at IIT’s, IIM’s and ISB’s with minimum margin money (own contribution by student/ family) of 5% of the total cost
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6. Key Appraisal Criteria
- Good academic record with at least 50% marks in the qualifying examinations
- Admission letter from a bonafide educational institution
- Passport/visa/i-20 form for studies abroad
- Net-worth and credit history (CIBIL) of the guarantors
Features & Benefits of Study Loan
- Loan financing up to Rs.1 crore available.
- Loan repayment tenure up to 15 years.
- Get Education loans for studies in India and abroad.
- Some lenders offer loan disbursal before applying for a Visa.
- Door-step service to collect required documents.
- Children of the bank’s employees enjoy preferential rates at several banks.
- Certain banks offer concessional interest rates to female students.
- Enjoy a moratorium period of up to 1 year after course completion. During this period, you do not have to make payments on the loan.
- Enjoy tax benefits up to 8 years on the interest paid.
Documents Required for Education Loan
- Admission letter from the educational institution
- Marksheets (previous education – school/college)
- Age proof
- ID proof
- Address proof
- Signature proof
- Salary slips
- Recent bank account statements
- ITR with income computation
- Audited balance sheet
- Proof of turnover (service tax return/sales receipt)
- Completed application form with signature
- Latest passport size photographs
- Appropriate Visa for studies abroad
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Tax benefit on Educational Loan
- Interest paid on education loan can be claimed as a deduction from the income of the borrower (student) as per Section 80E of the Income Tax Act, 1961
- Rebate can be claimed without any upper ceiling or cap
- The Rebate is available for full-time courses, part-time courses, and vocational courses pursued in India and abroad
- Rebate can be claimed within eight (8) years post moratorium period subject to the actual payment of interest
- Rebate is available for interest paid on loans for education of self, spouse, children or for the student of whom he/she is the legal guardian
- No rebate is available for principal repayment
Frequently Asked Questions
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