10 Best Indian Banks For Education Loan-Education is very important in the life of every child as it plays a crucial role in their lives. Through education, you get to secure a job based on your qualification and you also get other opportunities to help make your life better.
Some people do not have this opportunity to get educated due to lack of funds but what if we tell you that this shouldn’t hinder you from pursuing that career. If you don’t have the funds to sponsor your education, you can opt for educational loans and some of these banks and financial institutions offer education loans without collateral but how do you know the best banks that offer educational loans with the best condition.
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That shouldn’t be a problem and you should be glad you saw this article as we through our research, we have discovered the best Indian banks for education loan to help you secure education.
Without further ado, let’s proceed…
- HDFC Bank
This bank offers education loans to study that want to study in India or abroad. You can get education loan to study in India up to INR 20 lakhs and you won’t need collateral but if you are studying abroad, you will need to present collateral.
The interest rate for education loan to study in India is between 9.20% to 13.67% and to study abroad, it is between 9.20% to 13.67%. The loan tenure is between 10 to 15 years.
—– Best Indian Banks For Education Loan —–
The bank has one of the lowest interest rate when it comes to education loans although it doesn’t offer loans for some skill development courses. The processing and disbursing time is also quick as it takes around 2 to 4 days to process your application for a loan.
The cons about HDFC education loan is that they offer less loan to study in India and also 1% loan processing fee but aside this, it is a nice pick for education loan in India.
- Axis Bank
This bank offers education loans for only graduate and post-graduate courses to students who have scored 50% or above marks in Graduation or HSC and it offers only one education loan scheme up to INR 75 lakhs.
The interest rates are divided depending on the loan amount:
- For loan amount up to INR 4 lakhs: 15.20%
- For loan amount above INR 4 lakhs to INR 7.5 lakhs: 14.70%
- For loan amount above INR 7.5 lakhs: 13.70%
If you are picking Axis Bank education loan, be sure having your application being processed in time with no processing fee especially for loan amount below INR 10 lakhs. The loan tenure is between 10 to 15 years.
The cons about Axis Bank are that they offer only one education loan scheme with high interest rate. Also, you will be charge penal interest for late payment which is also high.
- Union Bank of India
This bank offers education loans in three specific categories and they are education loans for courses in India, education loan for courses abroad and education courses for courses in Premier institutions (India). You can get loan up to INR 30 lakhs.
The Union Bank of India doesn’t charge any processing fee for Indian students regardless of the amount loan amount but you will have to take life insurance of the same value and amount as the education loan.
The interest rate is also shared into categories depending on the schemes:
- Education loan for ISB: 8.90%
- IBA scheme: 10.70% to 11.85%
- Skill Development courses: 11.85%
- Scheme for Premier Management and Technical Institutes: 8.70%
The Union Bank of India offer education loans with zero processing charges and also a 0.50% concessional interest rate for girls.
The cons about UBI are that documentation process can take time unlike the two we mentioned above.
- Vijaya Bank
This bank offers multiple education loan schemes and the bank normally grants education loans to students who join under the management quota. In this management quota scheme, the bank will pay 85% of the fees and the remaining 15% will be paid by the student.
The interest rate for loan given by this bank depends on the scheme and they are:
- Educational loan for ISB: 8.75%
- IBA scheme: 10.75% to 10.90%
- Management quota: 12.25%
- Vocational courses: 11.50%
- Educational loan for Premier Central Institutions: 8.75%
- Skill Development Courses: 10.40%
There are no processing fees for loan amount up to INR 10 lakhs and also a 0.50% concessional interest rate for girls.
The con about this bank is that application processing is usually slow.
- State Bank of India
This bank offers loan scheme based on the IBA model and the SBI Scholar scheme is based on merit for students who want to pursue technical or professional courses in premier institutions like IIT, IIM, and NIT.
Also, there is another scheme called the SBI Global Ed Vantage Scheme where students can take loan amount up to INR 20 lakhs to 1.5 crores.
The interest rate for loan given by this bank depends on the scheme and they are:
- SBI Skill Loan scheme: 10.04%
- SBI Student Loan scheme: 10.80%
- SBI Global Ed Vantage scheme: 10.80%
- SBI Scholar Loan Scheme: 8.75% to 10.05%
There are no processing fees for apply for education loan under any of the loan scheme offers by SBI but the cons of getting an education loan from this bank is that the processing time is slow.
- ICICI Bank
This bank offers education loans up to INR 50 lakhs for students that want to study in India and up to INR crore for students that want to study abroad. This is one of the banks in India that offer education loan without collateral for undergraduate courses up to INR 20 lakhs and for postgraduate courses up to INR 40 lakhs.
The interest rate for education loan from this bank is between 10.90% to 11.50% and there is less paperwork and quick processing time.
The con of taking education loan from this bank is that the repayment period is as short as six months whether you get a job or not.
- Canara Bank
This bank offers education loan on a need-based criteria and they offer the loan for vocational education and training. Students that want to study in India can get education loan up to INR 10 lakhs and for those that want to study abroad, they can get education loan up to INR 20 lakhs.
The Canara Bank has a scheme called the Vidya Turant Scheme which gives education loans to students based on merit especially for students that want to pursue professional courses in Premier Institutions and they offer a loan of maximum INR 25 lakhs.
The interest rate for the loan schemes under this bank are as follows:
- IBA based scheme: 10.70%
- Vocational Education and Training: 10.20%
- Vidya Turant scheme: 8.90%
This bank has a low processing fee for its education loan but there is too much paperwork which can make application tedious.
- Punjab National Bank
This bank offers a lot of educational loan scheme to students so students have a lot of options to pick from. One of the schemes is the PNB Saraswati which is the normal IBA model education loan scheme for students that merit the loan and then the PNB Pratibha scheme for students who want to study in Premier Institution and top business schools.
Also, the bank offer a special scheme to students that want to study abroad and it is the PNB Udaan.
The interest rate for education loan from this bank depends on the scheme and they are:
- PNB Prathibha scheme: 8.55% to 9.20%
- PNB Saraswati scheme: 10.55%
- PNB Udaan scheme: 10.40% and for women: 3.50%
- PNB Kaushal: 10.05%
There is a low processing fee for education loan application but there is too much paperwork which makes the process tedious.
- Allahabad Bank
This is a great bank for education loan as it provides the highest education loan limit of INR 75 lakhs and if you pay the monthly interest during the holiday period or during your study program, you will get 1% concessional interest rate.
One of the loan schemes under this bank is the Gyan Dipika which provides education loan to kids starting from nursery to 12th class without any margin and the maximum limit is INR 1 lakh with a repayment period of up to 3 years but you will need collateral to get this education loan.
The interest rate depends on the loan scheme and they are:
- Gyan Dipika scheme: 13.00%
- Education loan at top colleges: 10.00%
It has a low processing fee but there is too much paperwork which makes the application tedious.
- Corporation Bank
When it comes to education loan for vocational and skill development courses, then this is the best bank to look at. This bank provides three education loans and the student must have scored 60% marks in HSC/UG.
Students can get up to INR 1.5 lakhs for pursuing any desired vocational course.
The interest rate depends on the loan schemes and they are:
- Corp Vidya Scheme: 10.95%
- Corp Skill Loan scheme: 10.45%
The Corporation Bank education loan has no processing fee and gives a concessional interest rate of 0.50% for girls but the processing time is slow.
What Are The Minimum Requirements And Documents To Get Education Loan?
We will be listing the minimum requirements you will need to meet to get an education loan and they are:
- You must be a citizen of India
- You must have an offer or admission letter from a recognized university (whether in India or abroad)
- For all the education loans ranging between 4 lakhs to 7.5 lakhs, a third-party guarantor is required.
- If you are want to study abroad with an education loan, you will need an insurance
- You will be the prime borrower but you may have a co-applicant who can be your parent or guardian.
- If you or your co-applicant have a good CIBIL score, it will be easier to secure for the loan.
Some of the documents that are needed are:
- Identity proof
- Address proof
- Offer letter or admission letter from a recognized institution
- Income document of both the applicant and the co-applicant
- Document of assessment of assets and liabilities(for applicant and co-applicant)
How To Choose The Best Indian Bank For Education Loan
We have listed about 10 best Indian banks for education loan but how would you know the best one out of all as they all have they pros and cons. We will be giving you some tips on how you can pick the best Indian bank for education loan.
- Collateral: you should pick a bank that doesn’t require collateral or even if they do, it should be minimal as it is better for you as the applicant.
- Repayment period: it will be better for you as the applicant if the repayment period is longer because the longer, the better and it should be after you must have completed the study program.
- Interest rate: you should choose a bank that offers education loan at a lower interest rate because the lower the interest rate, the better.
These are the ten best Indian banks for education loans and each of these banks have their requirements for students either you want to study in India or abroad. There are several education loan scheme under these banks so you will have to look for the one in which you meet the requirements so you can start your application.
Also, some of these banks give education loans even without collateral so you wouldn’t have to bother about getting security before you can assess education loan from these banks. – Best Indian Banks For Education Loan –