Educational Loans In India: Best Banks With Minimum Rate Of Interest

Education is expensive! It doesn’t matter if you are pursuing it in India or abroad. If you are looking for quality higher education you must be willing to pay a good amount as fees and other educational expenses. 

The best ways by which a student can pursue his/her dream without having to struggle financially is by applying for a scholarship or an educational loan. You can apply for an educational loan to do a course in India or abroad. Unless the student is employed his/her parents/guardian will have to be their guarantors to get an educational loan. 

You can consider taking a loan against gold if you have gold in the form of jewelry or coins. Gold loan interest rates are quite low compared to other loans like a personal loan.

However, most of the time this money wouldn’t be sufficient enough to meet the entire educational expenses of a student unless you have a sufficient amount of cash in hand. The best solution would be to apply for an educational loan. 

Given below are some of the facts related to educational loans in India in general.

The loan amount for education in IndiaMinimum amount – Rs.20,000 and Maximum amount- Rs. 45,00,000
The loan amount for education abroadMinimum amount Rs.1,50,000 and Maximum amount is 1,50, 00,000
Rate of interest on domestic loansMinimum ROI is 8.36% and Maximum ROI is 15.8%
Rate of interest on foreign education loansMinimum ROI is 9.7% and Maximum ROI is 16.2%
Loan Tenure for both loans in India and foreign loansMinimum 1 year and a maximum of 20 years


Educational Loans Offered By The Major Banks In India With The ROI

Rate of Interest on educational loans provided by some of the major banks in India is as follows. 

BankLoan AmountRate Of Interest
SBIUp to 7.5 lakhsMore than 7.5 lakhs10.25%10.50%
Axis BankUp to an amount of 4 lakhsBetween 4.00 lakhs and 7.5 lakhsAbove 7.5 lakhs15.20%
14.70%
13.70 %
HDFC BankAnnual Percentage Rate [APR] (Minimum)APR (Maximum)APR (Average)9.0%
13.86%11.57%
PNBPNB Kaushal
PNB Pratibha   (XLRI Jamshedpur, IIMs, and IITs)
PNB Pratibha (other colleges)
PNB Saraswati/Udaan
PNB Honhaar
8.55% onwards
8.45% onwards


8.55% onwards

10.30% onwards
10.45%
Canara BankUp to Rs. 4 lakhs
From Rs.4 Lakhs to Rs. 7.50Lakhs
Above Rs.7.50 Lakhs

10.40%
10.40%


10.20%

Union Bank of IndiaEducational loan schemes (Premier Technical institutes and Management Institutes)
IBA Loan Scheme
Loan for ISB

8.70%




10.70%-11.85%
8.90%




Advantages And Disadvantages

The following are some of the advantages and disadvantages of taking educational loans from the major banks in India.

BankAdvantagesDisadvantages
SBIDifferent kinds of schemesThe processing fee is lowLow ROIProcessing time is higher
Axis BankQuick processingThe loan limit is higherRate of Interest is higherLate payment draws high penal interest charges
HDFCQuick processingROI is lowThe processing fee is highPresence of hidden charges
PNBThe processing fee is lowDifferent kinds of loan schemesROI is lowHuge amounts of paperwork
Canara BankLow fee for processingInterest rate concessions for girls
The loan amount is quite lowHuge amounts of paperwork
Union Bank of IndiaProcessing charges are nilConcessional ROI for girlsProcessing and documentation is slowROI higher

If you are planning to choose an educational loan with a minimum rate of interest it would be best to choose between HDFC, SBI, and PNB. Make sure you compare the schemes offered by a few major banks and choose one that works well for you.

This blog is maintained by the Finaura team. Finaura is a solution that will help you find the best gold loan solution from gold loan company nearest to you. If you have any queries please feel free to contact us. Call us on +91 484 2388285 or email us at [email protected]