The interest rates range from 8.45% to 15.2% per annum, these loans come with a flexible tenure of up to 15 years and you can pay Rs. 1.5 crore or more
High quality education has become expensive over the years. Now-a-days, saving parents is not enough for their children to have high school and college education. Education loans are the best way to meet their child’s higher education expenses. So in this post, we are providing a detailed comparison of SBI / HDFC / PNB / ICICI bank education loan interest rate in India.
All children who want to get an education loan to further their education without disturbing their finances, can check the latest education loan interest rates. Children can avail education loans for courses in India or abroad. For unemployed students, their parents and parents need to be their guarantors.
If you are looking for an education loan, the interest rates range from 8.45% to 15.2% per year. These loans come with a flexible tenure of 15 years. The amount that can be borrowed by the students is Rs. 1.5 crores or more as per bank’s policies.
Education loan interest rate comparison in India
Below is the comparison of full education loan interest rate of different banks of India: –
1. State Bank of India (SBI)
SBI is the largest bank in India which provides education loan services. This bank offers term loans to Indian citizens to study in India or abroad where the student has taken admission. As per SBI policies, the repayment period is 15 years after the course period + 12 months repayment leave. In addition, there is no upfront fee on any processing or education loan.
Expenses covered
The following expenses are included in SBI Education Loan: –
- Fee payable for school / college / hostel
- Examination / Library / Laboratory fee
- Purchase of books / equipment / equipment / uniform required for completion of the course, maximum 20% of the total tuition fees payable for completion of the course)
- Fixed Deposit / Building Fund / Refundable Deposit (Maximum 10% of tuition fee for maximum course)
- Travel expenses / money for studying abroad
- The 2 wheeler is priced at Rs. Up to 50,000
- It is necessary to meet any other expenses like study tours, project work etc.
SBI Education Loan Interest Rate
| Loan Limit | 3 Year MCLR | Spread | Effective Interest Rate | Reset period |
|---|---|---|---|---|
| Upto Rs. 7.5 lakhs | 8.25% | 2% | 10.25% | No reset |
| Concession | 0.5% concession in interest for girl students | |||
| Above Rs. 7.5 lakh | 8.25% | 2% | 10.25% | No Reset |
| Concession | 0.5% concession in interest for girl students | |||
| 0.5% concession for students availing of SBI Rinn Raksha or any other existing policy in favour of SBI bank |
2. Punjab National Bank (PNB)
PNB offers three education loan schemes, such as PNB Saraswati, PNB Pratibha and PNB Kamgar. All Indian citizens can avail these loans to meet the education expenses. These expenses include tuition fees, purchase of books, equipment, computers, travel, study tours, boarding, all fees except for lodges.
- PNB Saraswati – This is a regular scheme to pursue higher studies in India or abroad. The objective of this education loan scheme is to provide financial assistance to meritorious students for pursuing higher education.
- PNB Pratibha – In this scheme, collateral free education loan is provided at low interest rates for higher studies in India or abroad.
- PNB Kaamgar – The objective of this scheme is to provide financial support from the banking system to people with minimum educational qualifications as required by the institution / organization qualifying under the scheme.
PNB Bank Education Loan Interest Rate
| PNB Udaan Education Loan Scheme | Loans upto Rs. 7.5 lakh covered under CGFSEL Scheme | RLLR + 2.15% |
|---|---|---|
| Loans above Rs. 7.5 lakh | RLLR + 2.75% | |
| Loans irrespective of amount where 100% tangible collateral security in shape of IP, enforceable under SARFAESI Act and / or liquid security is available | RLLR + 2% | |
| Loans for pursuing education from premium foreign universities and educational institutes (200) under PNB Udaan – Loan upto 7.5 lakh covered under CGFSEL | RLLR + 2% | |
| Loans for pursuing education from premium foreign universities and educational institutes (200) under PNB Udaan – Others | RLLR + 2% | |
| Education Loan to children of PNB’s Employee is either co-borrower or guarantor | RLLR + 0.25% | |
| PNB Pratibha admission to other than IITs, IIMs, XLRI Jamshedpur and NITs | Loan upto Rs. 7.50 lakh under CGFSEL | RLLR + 0.75% |
| Loan above Rs. 7.5 lakh | RLLR + 0.25% | |
| PNB Pratibha admission to IITs, IIMs, XLRI Jamshedpur and NITs | Loan upto Rs. 7.50 lakh under CGFSEL | RLLR + 0.65% |
| Loan above Rs. 7.5 lakh | RLLR + 0.15% | |
| PNB Pravasi Shiksha Loan | RLLR + 2.15% | |
| PNB Honhaar | Loan upto Rs. 10 lakh | RLLR + 2.15% |
| PNB Bihar Student Credit Card Scheme | Loan upto Rs. 4 lakh | RLLR + 2% |
| Concessional Loan to Persons with Disabilities | Women | 3.5% |
| Others | 4% | |
| No further concession in interest shall be available to any category of borrowers for regualr servicing of interest during moratorium period |
3. HDFC Bank
HDFC Bank has invested Rs. 10 lakhs for studies in India. No collateral is required to be presented as security for loans up to Rs. 7.5 lakhs. Any education loan amount that is Rs. Be more than. 7.5 lakh will require collateral security in the form of residential properties, fixed deposits of HDFC Bank, LIC, NSC or KVP policy. Borrowers are taking loans up to Rs. 7.5 lakhs can extend their repayment tenure up to 10 years and for loan amount above Rs. A term of 7.5 lakhs can be chosen after 15 years of the moratorium period.
Interest Rate
| Minimum APR | 9% |
| Maximum APR | 13.86% |
| Average APR | 11.57% |
4. ICICI Bank
ICICI Bank offers education loans up to Rs. Up to Rs 50 lakh for your educational needs in India. 1 crore for overseas. You can go to the nearest ICICI bank branch, fill the form and start with the loan approval process which you can also apply online. Loans are offered for domestic institutions / international institutions and include both undergraduate (UG), post graduate (PG) courses.
Other expenses such as student exchange travel expenses, laptops are also included. The loan ensures pre-visa disbursement for students applying for overseas education. The bank also assures preferential foreign exchange rates for international disbursements.
Interest Rate
| UG Domestic & International | PG Domestic & International | |
|---|---|---|
| Interest Rate | Starting at 11.75% p.a | Starting at 11.25% p.a |
| Loan tenure without collateral | Upto 5 years post course period + 6 months | Upto 8 years post course period + 6 months |
| Loan tenure with collateral | Upto 7 years post course period + 6 months | Upto 10 years post course period + 6 months |
| Maximum loan requirement | Upto Rs. 50 lakh for domestic courses & upto Rs. 1 crore for international courses | |
| Collateral requirement | As per the institute. Collateral free loans for select institutes : upto Rs. 20 lakh for UG & upto Rs. 40 lakh for PG courses | |
| Moratorium period | As per course and institute | |
| Margin | No margin upto Rs. 20 lakh, ranging from 5% to 15% margin for loans above Rs. 20 lakh (margin can be FD / scholarship / initial fee paid to institute) |
It is important to note that an education loan not only helps you in the finance of your foreign studies, but it can also save you a lot of taxes. If you have taken an education loan and are paying the same, then the interest paid on that education loan is eligible for deduction from the total income under Section 80E of the Income Tax Act. However the deduction is provided only for the interest portion of EMI. There is no limit to the maximum amount allowed as a deduction. However, you will need to get a certificate from your bank.
Other Information
Top Banks Education Loan Interest Rates
| Banks/NBFC | Loan Amount | Rate of Interest |
| Axis Bank | Up to Rs. 4 Lakhs | 15.20% |
| Loans greater than Rs. 4 Lakhs and upto Rs. 7.5 Lakhs | 14.70% | |
| Loans greater than Rs. 7.5 Lakhs | 13.70% | |
| Bank of Baroda | For all loan types and amounts | 8.50% onwards |
| Canara Bank | For Vidhya Turant Loan Scheme | 6.60% |
| Up to Rs. 4 Lakhs | 10.40% | |
| Rs. 4 Lakhs to Rs. 7.50 Lakhs | 10.40% | |
| Loans above Rs. 7.50 lakhs | 10.20% | |
| IBA´s Model Loan scheme for Vocational Education & Training | 9.90% | |
| HDFC Bank | Minimum APR | 9.00% |
| Maximum APR | 13.86% | |
| Average APR | 11.57% | |
| Kotak Mahindra Bank | For all loan types and amounts | 11.5% to 24% |
| Punjab National Bank | PNB Kaushal | 8.55% onwards |
| PNB Saraswati/Udaan | 10.30% onwards | |
| PNB Pratibha (for admission to IITs , IIMs and XLRI Jamshedpur) | 8.45% onwards | |
| PNB Pratibha (for admission to other colleges) | 8.55% onwards | |
| PNB Honhaar | 10.45% | |
| State Bank of India | Up to Rs. 7.5 Lakhs | 10.25% |
| Above Rs. 7.5 Lakhs | 10.50% | |
| Avanse | For all loan types and amounts | 10% to 16.50% |
| Credila | For all loan types and amounts | 11.85% onwards |