Which Bank Is Best To Take Education Loan?
Compare Top Education Loan Offers 2022
| Name of Bank | Interest Rate (p.a.) |
|---|---|
| SBI | 7.95% onwards |
| Axis Bank | 13.70% to 15.20% |
| Bank of Baroda | 8.50% onwards |
| HDFC Bank | 9.55% to 13.25% (full-time course) 12.75% (part-time course) |
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Contents
Which Bank has lowest interest for education loan?
Central Bank of India provides education loans to students to study in India and abroad with interest rates starting from 6.85%. The bank also offers concession rates for female students.
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Which government Bank is best for education loan in India?
Education Loan Interest Rate in India – A student can apply for an education loan as per their financial needs, but for that, students must have a thorough knowledge of the interest rates that the banks are offering. All banks provide loans with a variety of interest rates. So, refer to this table below to know the education loan interest India.
| S.no | Name of the bank | Interest rate offered | Maximum loan amount in India | Repayment tenure |
| 1. | State Bank of India | 9.30% for males 8.80% for females | 1.5 Cr | Upto 15 years |
| 2. | Bank of Baroda | Upto 7.5 lakhs- 7.95% Above 7.5 lakhs-7.70% | Prime: Upto 80 Lakhs Non-Prime: Upto 60 Lakhs | Up to 15 years |
| 3. | Punjab National Bank | Upto 7.5 lakhs- 11.40% for males 10.90% for females Above 7.5 lakhs- 11.15% for males 10.65% for females | Upto 10 Lacs- In India Upto 20 Lacs- In Abroad | Up to 15 years |
| 4. | Canara bank | Upto Rs 7.5 Lacs – 10.70% for males 10.20% for females Above 7.5 Lacs – 10.50 % for males 9.95% for females | Upto 10 Lacs- In India Upto 20 Lacs- In Abroad | Up to 15 years |
| 5. | Central bank of India | Upto Rs 7.5 Lacs – 9.00% for males 8.50% for females Above 7.5 Lacs – 9.00% for males 8.50% for females | Upto 10 Lacs- In India Upto 20 Lacs- In Abroad | Up to 15 years |
| 6. | Bank of Maharashtra | Upto Rs 7.5 Lacs 8.90 % Above 7.5 Lacs – 8.55 % | Upto 10 Lacs- In India Upto 20 Lacs- In Abroad | Up to 7 years |
| 7. | Bank of India | Upto Rs 7.5 Lacs- 10.35 % Above 7.5 Lacs – 9.85 % | Upto 10 Lacs- In India Upto 20 Lacs- In Abroad | Up to 15 years |
| 8. | UCO Bank | Upto Rs 7.5 Lacs- 9.10 % Above 7.5 Lacs – 9.50 % | Upto 10 Lacs- In India Upto 20 Lacs- In Abroad | Up to 15 years |
| 9. | Indian Overseas Bank | Upto Rs 7.5 Lacs- 10.65 % Above 7.5 Lacs- 11.65 % | Upto 30 Lacs- In India Upto 40 Lacs- In Abroad | Up to 7 years |
| 10. | United Bank of India | Upto Rs 7.5 Lacs- 11.40 % for males 10.90% for females Above 7.5 Lacs- 11.15 % for males 10.65% for females | Upto 10 Lacs- In India Upto 20 Lacs- In Abroad | Up to 15 years |
Note: The above-mentioned interest rates are correct as of the date of publishing the article as they are subject to change with the change in the market factors. These are the top 10 Government bank’s latest education loan interest rates in India. Many students prefer Government banks because of the low interest rates they offer but as we all know how slow the Government banks are, we recommend you to apply through Vidyaloans.
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Which Bank is best for education loan 2022?
Conclusion – If you are looking for a higher loan amount for studying abroad then you can consider applying at SBI (Rs.1.5 Crores). But if you are looking for quick processing and a higher amount, then you can apply for an education loan at ICICI Bank (up to Rs.1 Crore). : 11 Best Banks for Education Loan in India 2022
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How much education loan can I get from SBI?
SBI Education Loan Schemes – State Bank of India has brought out many schemes that aim to cater to the diverse needs of India’s youth. The scheme target specific groups of students that might want to pursue higher education in India, abroad, or simply want to develop a specific vocational skill. The schemes are:
SBI Scholar Loan Scheme
State Bank of India Scholar Loan Scheme was brought out by the bank to provide financial aid to meritorious students who have secured admission in a premier institute of India. The list of premier institutes can be found here, Maximum Loan Amount
| Grade of Institute | Maximum Loan Amount | |
| Without Security. Parent as co-borrower | 100% tangible security with parent as co-borrower | |
| List AA | ₹ 40.00 lakh | – |
| List A | ₹ 20 Lakh | ₹ 30.00 lakh |
| List B | ₹ 20 Lakh | – |
| List C | ₹ 7.5 Lakh | ₹ 30.00 lakh |
In case of married person, co-obligator can either be spouse or parent, parent-in-law. Parental obligation can also be substituted by a suitable third party guarantee. Courses Covered Courses covered in this education loan are only regular full time Degree or Diploma courses that the student secured through selection or merit.
| Eligibility | Should be an Indian national residing in India. |
| Student should have secured admission in a premier institute as set by SBI, | |
| Moratorium Period | Course Period with additional 1 year |
| Expenses Covered | Fee payable to College or University, Hostel charges. |
| Travel Expenses or passage money from destination country to back even in case of student exchange program. | |
| Insurance premium if any Life Insurance is opted by the student borrower | |
| Examination, Library, and Laboratory Fee. | |
| Any other expenses required to complete the course like study tour, etc | |
| Books, instruments, uniforms. | |
| Personal Computers or Laptops if required. | |
| Caution deposit, building fund, refundable deposit supported by institution bills. As long as it is less than 10% of total tuition fee for the course. | |
| Repayment Period | Repay within 15 years after completion of course and additional 1 year |
| In case second loan is availed for higher studies later then repay within 15 years after completion of the second course | |
| EMI Generation | The accrued interest during moratorium and course period is added to principal amount and repayment EMI is fixed. If interest is paid off within moratorium period then EMI is fixed based on principal amount only. |
Documents Required The bank requires certain documents under Know Your Customer Policy (KYC). The documents are required from both the student and co-borrower:
| Identity Proof | Passport, PAN Card, Aadhaar Card, Voter’s ID Card, Driving Licence, Photo Credit Card, Central and State Govt. issued Photo ID Proof, Defence ID Card, etc. |
| Residence Proof | Aadhaar Card, Ration Card, Passport, Bank Account Statement, Voter’s ID Card, Letter from any recognized public authority, Telephone Bill, Electricity Bill, Water Bill etc (not more than 3 months old), etc. |
| Income Proof in case of salaried co-borrower | Salary Slips (not more than 3 months old), Bank Statements (not more than 3 months old), ITR, Form-16 for last 2 years, bank account statement for last 6 months of salary account. |
| Income proof for self-employed co-applicant | Business address proof, IT returns for last two years (If IT payee). TDS certificate Form 16A if applicable, Certificate of qualification (for CA, doctor, and other professions). Bank account statement for last 6 months. |
Aside from KYC documents banks require some additional documents as well.
| Student Applicant | Mandatory Passport submission |
| Academic Records: X, XII grade results. Graduation results semester wise. Entrance Exam results that formed the basis of admission | |
| Proof of admission. Conditional application letter may be considered | |
| Cost of education, schedule of expenses. | |
| 2-passport size photographs | |
| If Loan was taken out before then loan account statement for last 1 year. | |
| Co-applicant | 2-passport size photographs |
| If Loan was taken out before then loan account statement for last 1 year. |
Do note that all documents need to be self-attested. SBI Global Ed-Vantage Scheme State Bank of India has also brought out schemes that cater to students that plan to go abroad to pursue their education. This scheme only caters to them and has faster application review and offers better interest rate.
- Also under this scheme student can avail a loan before their I-20 visa/Visa is approved.
- Maximum Loan Amount SBI Global ED-Vantage scheme allows a maximum of ₹ 1.5 crore loan amount for foreign education.
- The minimum loan amount is ₹ 20.00 Lakh.
- Eligible Courses Regular Graduate or Post Graduate courses offered by institutes or universities located in USA, UK, Canada, Australia, Europe, Singapore, Japan, Hong Kong and New Zealand.
Other details of SBI Global Ed-Vantage Scheme are:
| Eligibility | Should be an Indian national. |
| Margin | Scholarship or assistance to be considered in Margin |
| Margin will be brought in on year-on-year basis as and when disbursements are made on a pro-rata basis. | |
| Moratorium Period | Course Period with additional 6 months |
| Processing Fees | ₹ 10,000 per application |
| Expenses Covered | Fee payable to College or University, Hostel charges. |
| Travel Expenses or passage money from destination country to back even in case of student exchange program. | |
| Insurance premium of Rinn Raksha insurance scheme | |
| Examination, Library, and Laboratory Fee. | |
| Any other expenses required to complete the course like study tour, etc | |
| Books, instruments, uniforms, capped at 20% of total tuition fees. | |
| Personal Computers or Laptops if required. | |
| Caution deposit, building fund, refundable deposit supported by institution bills. As long as it is less than 10% of total tuition fee for the course. | |
| Repayment Period | Repay within 15 years after completion of course and additional 1 year |
| EMI Generation | The accrued interest during moratorium and course period is added to principal amount and repayment EMI is fixed. If interest is paid off within moratorium period then EMI is fixed based on principal amount only. |
| Security | Tangible collateral security Collateral security offered by third party, other than parents, can also be considered. |
Documents Required The bank requires certain documents under Know Your Customer Policy (KYC). The documents are required from both the student and co-borrower:
| Identity Proof | Passport, PAN Card, Aadhaar Card, Voter’s ID Card, Driving Licence, Photo Credit Card, Central and State Govt. issued Photo ID Proof, Defence ID Card, etc. |
| Residence Proof | Aadhaar Card, Ration Card, Passport, Bank Account Statement, Voter’s ID Card, Letter from any recognized public authority, Telephone Bill, Electricity Bill, Water Bill etc (not more than 3 months old), etc. |
| Income Proof in case of salaried co-borrower | Salary Slips (not more than 3 months old), Bank Statements (not more than 3 months old), ITR, Form-16 for last 2 years, bank account statement for last 6 months of salary account. |
| Income proof for self-employed co-applicant | Business address proof, IT returns for last two years (If IT payee). TDS certificate Form 16A if applicable, Certificate of qualification (for CA, doctor, and other professions). Bank account statement for last 6 months. |
Aside from KYC documents banks require some additional documents as well.
| Student Applicant | Mandatory Passport submission |
| Academic Records: X, XII grade results. Graduation results semester wise. Entrance Exam results that formed the basis of admission | |
| Proof of admission. Conditional application letter may be considered | |
| Cost of education, schedule of expenses. | |
| 2-passport size photographs | |
| If Loan was taken out before then loan account statement for last 1 year. | |
| Co-applicant | 2-passport size photographs |
| If Loan was taken out before then loan account statement for last 1 year. |
Do note that all documents need to be self-attested. SBI Student Loan Scheme Under State Bank of India Student Loan Scheme the bank extends loan to students who want to secure higher education but don’t have the finances at the moment or want to disburse the financial burden over a greater time period.
This student loan scheme can be availed by any prospective student seeking education in India or abroad. The Maximum Loan Amount is ₹ 10.00 Lakh if pursuing education in India. It is ₹ 20.00 Lakh if pursuing in a foreign land. Higher loan limit for domestic education can be considered on a case to case basis.
If the student plans to move abroad to pursue higher education and want additional loan amount they can apply for Global Ed-Vantage Scheme. Eligible Courses
Domestic Courses
Graduation, Post-graduation including regular technical and professional Degree or Diploma courses conducted by colleges or universities approved by UGC, AICTE,IMC, Government, etc. Regular Degree or Diploma Courses conducted by autonomous institutions like IIT, IIM, etc.
International Courses
Job oriented professional, technical Graduation Degree courses, Post Graduation Degree, and Diploma courses like MCA, MBA, MS, etc. that are offered by reputed universities Courses conducted by CIMA (Chartered Institute of Management Accountants) – London, CPA (Certified Public Accountant) in USA etc. Other details regarding the scheme are:
| Eligibility | Should be an Indian national who has secured an admission. |
| Margin | Up to ₹ 4.00 Lakh Nil |
| Above ₹ 4.00 Lakh | Domestic 5% International 15 % |
| Moratorium Period | Course Period with additional 1 year |
| Expenses Covered | Fee payable to College or University, Hostel charges. |
| Travel Expenses or passage money for those that are headed abroad. | |
| Cost of a two wheeler, capped at ₹ 50,000. | |
| Examination, Library, and Laboratory Fee. | |
| Any other expenses required to complete the course like study tour, etc. | |
| Books, instruments, uniforms, capped at 20% of total tuition fees. | |
| Personal Computers or Laptops if required. | |
| Caution deposit, building fund, refundable deposit supported by institution bills. As long as it is less than 10% of total tuition fee for the course. | |
| Repayment Period | Repay within 15 years after completion of course and additional 1 year. |
| In case second loan is availed for higher studies later then repay within 15 years after completion of the second course. | |
| EMI Generation | The accrued interest during moratorium and course period is added to principal amount and repayment EMI is fixed. If interest is paid off within moratorium period then EMI is fixed based on principal amount only. |
| Security | Up to ₹ 7.50 Lakh Only parent or Guardian as co-borrower |
| Above ₹ 7.50 Lakh Parent, parent in law, spouse, guardian as co-borrower with tangible security |
Documents Required The bank requires certain documents under Know Your Customer Policy (KYC). The documents are required from both the student and co-borrower:
| Identity Proof | Passport, PAN Card, Aadhaar Card, Voter’s ID Card, Driving Licence, Photo Credit Card, Central and State Govt. issued Photo ID Proof, Defence ID Card, etc. |
| Residence Proof | Aadhaar Card, Ration Card, Passport, Bank Account Statement, Voter’s ID Card, Letter from any recognized public authority, Telephone Bill, Electricity Bill, Water Bill etc (not more than 3 months old), etc. |
| Income Proof in case of salaried co-borrower | Salary Slips (not more than 3 months old), Bank Statements (not more than 3 months old), ITR, Form-16 for last 2 years, bank account statement for last 6 months of salary account. |
| Income proof for self-employed co-applicant | Business address proof, IT returns for last two years (If IT payee). TDS certificate Form 16A if applicable, Certificate of qualification (for CA, doctor, and other professions). Bank account statement for last 6 months. |
Aside from KYC documents banks require some additional documents as well.
| Student Applicant | Mandatory Passport submission if going abroad. |
| Academic Records: X, XII grade results. Graduation results semester wise. Entrance Exam results that formed the basis of admission | |
| Proof of admission. Conditional application letter may be considered | |
| Cost of education, schedule of expenses. | |
| 2-passport size photographs | |
| If Loan was taken out before then loan account statement for last 1 year. | |
| Co-applicant | 2-passport size photographs |
| If Loan was taken out before then loan account statement for last 1 year. |
Do note that all documents need to be self-attested. SBI Skill Loan Scheme State Bank of India has also brought out Skill Loan scheme to cater to those individuals that want to develop their future by acquiring vocational skills. The individuals can avail this loan at attractive interest rate.
The maximum Loan amount is ₹ 1.50 Lakh. However individuals can also seek loan amount as little as ₹ 5,000. Eligible Courses and Schools Courses run by Industrial Training Institutes (ITIs), Polytechnics, training partners affiliated to National Skill Development Corporation (NSDC), Sector Skill Councils, State Skill Mission, State Skill Corporation, preferably leading to a certificate, diploma, degree issued by such organizations as per National Skill Qualification Framework (NSQF) are eligible for a Skill Loan.
Schools recognized by Central or State Education Boards or Colleges affiliated to recognized university leading to a certificate, diploma, degree issued by such organization as per National Skill Qualification Framework (NSQF) is eligible for a Skill Loan.
| Eligibility | Should be an Indian national who has secured an admission. |
| Margin | Nil |
| Moratorium Period | Course period less than 1 year 6 Months after course completion |
| Course period more than 1 year 12 Months after course completion | |
| Expenses Covered | Caution Deposit |
| Examination, Library, and Laboratory Fee. | |
| Cost of Books, and Equipment. | |
| Tuition Fees | |
| Any other expenses required to complete the course like study tour, etc. | |
| If deemed necessary Lodging or Hostel Fees will also be provided. | |
| Repayment Period | Loans up to ₹ 50,000 Up to 3 years |
| Loans between ₹ 50,000 and ₹ 1.00 Lakh Up to 5 years | |
| Loans above ₹ 1.00 Lakh Up to 7 years | |
| Timeline for Disposal of Loan | Maximum 6 days after receiving duly completed application. Additional 15 days required where verification is sought |
| Security | No collateral required, parents or guardian will sign as co-borrower |
Documents Required
Duly Filled Application FormMark Sheet of last qualifying ExamProof of admission, scholarship, etc.Schedule of expenses2 passport size photographs PAN Card of student and co-borrowerAadhaar Card of student and co-borrowerCo- borrower’s bank account statement for past 6 monthsCo-borrower’s income tax Returns or IT assessment order for the last 2 years (if IT Assesse)Statement of assets and liabilities of co-borrowerProof of Income, salary slips or form 16, for co-borrower
Take-Over of Education Loans State Bank of India in its drive to help secure students’ academic career has brought out a scheme where they help financially struggling families by buying their Student Loans from their creditors and levying smaller interest rate.
The scheme is really useful for those who have taken out an education loan and after their course end they have a hard time getting a job or had a huge financial loss. This scheme lets the user take the burden off the student and getting an extension of the loan. The scheme covers outstanding amount, Limits sanctioned as Top up Loan, and Prepayment penalty if any.
Salient Features
Education loans up to ₹ 1.50 Crore can be consideredAttractive Interest RateRepayment tenure can be up to 15 yearsNo processing feeNo hidden chargesGet top-up loan for pursuing higher studies
Maximum Loan Amount is ₹ 1.5 Crore. The minimum education loan amount should be ₹ 10.00 Lakh. Other important details for Take-Over of Education Loan are:
| Eligibility | The Education Loan should be fresh |
| Student should be an adult | |
| Loan should be fully disbursed | |
| Repayments should have started with regular EMIs registered with the creditor | |
| Processing Fee | NIL |
| Security | The collateral security should be 100% of the value of the proposed loan |
| Documents Required | Duly filled application form |
| 2 passport size photographs | |
| PAN Card of student and co-borrower | |
| Aadhaar Card of student and co-borrower | |
| Identity and Residence KYC documents | |
| Bank account statement of borrower and co borrower | |
| IT return or IT assessment order, pertaining to previous 2 years, of borrower and co-borrower (if IT Payee) | |
| Statement of assets and liabilities | |
| Proof of Income |
For proof of income and KYC the following documents will do:
| Identity Proof | Passport, PAN Card, Aadhaar Card, Voter’s ID Card, Driving Licence, Photo Credit Card, Central and State Govt. issued Photo ID Proof, Defence ID Card, etc. |
| Residence Proof | Aadhaar Card, Ration Card, Passport, Bank Account Statement, Voter’s ID Card, Letter from any recognized public authority, Telephone Bill, Electricity Bill, Water Bill etc (not more than 3 months old), etc. |
| Income Proof | Salary Slips (not more than 3 months old), Bank Statements (not more than 3 months old), ITR, Form-16, etc. |
Other documents sought by the bank are:
Mark sheet of latest qualifying exam for school and graduate course pursued in IndiaProof of admission to the instituteSchedule of expensesCopies of letter confirming scholarship, etc.Copies of foreign exchange permit, if seeking travel expenses.Statement of Bank account for the last six months of guarantor
If you are not an existing bank customer you would also need to establish your identity and give proof of residence.
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How much amount of education loan can I get?
Basic Criteria for Educational Loan One of the most vital questions that you may wonder about is the amount of the educational loan. In general, you can get up to 4 lakhs of educational loan for higher studies without any collateral. Under education loan scheme, you can get a maximum of 15 lakhs for studies in India and more 25 lakhs for abroad studies.
- When you take education loan up to 4 lakhs, only the student and the parent have to sign the document and no collateral are necessary.
- However, if your loan amount is between 4 lakhs and 7.5 lakhs, you will have to provide third party guarantee to the bank.
- If the loan is above 7.5 lakhs, you will have to furnish the bank with collateral documents.
These are documents of any securities like NSC which the bank can sell to recover the amount if you fail to pay. How to apply for an educational loan for higher studies? In order to apply for an educational loan, you will have to prepare a number of documents beforehand.
- The process goes as follows: Once you have determined to study at an institution and completed the process of admission, then you will have to concentrate on taking out an educational loan.
- Here are the documents which you should keep ready: You will have to provide a proof of admission to the selected recognized institution.
Proof of your consistently high academic performance along with the last mark sheet will need to be produced. The cut-off marks generally differ from general students to reserved students. You need to produce a schedule of fees. Depending on the amount that you are applying for, you will need to produce income statement, statement of assets and liabilities etc.
If you are going to study abroad, you need to produce your passport with a valid visa also. Your education loan will cover a number of things in addition to your tuition fees. These include hostel fees, exam fees, library fees, purchasing books, travel and other expenses for educational projects. After all the documents have been submitted and verified, you will have to appear for an interview.
It is best to know as much as possible about the course and the institutions that you have chosen. It takes around 15 days for an educational loan to be sanctioned. Once it has been sanctioned, you will get a promissory note which you will have to sign.
In most cases, banks pay the institution directly and or to you. You should check the repayment clause. In most cases, repayment starts six months after the end of the course or as soon as you get a job – whichever comes earlier. Interest rates on educational loans depend on a number of factors. In general, they vary between 10% and 15% rates of interest.
You can claim tax deduction on the interest of the education loan. However, no deduction can be claimed on the principal. : Basic Criteria for Educational Loan
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