Education... It is not just a word but it is…
It is becoming difficult for the students to cover up their education expenses as the cost of education is increasing day by day. Getting an education loan puts you on the safer side and helps you avail yourself of quality education with ease. Both government and private banks provide education loans to the students as it is one of their priority products. Different banks offer different interest rates, maximum loan amount limit, moratorium period, repayment period, and other benefits.
This is a side-note but worth mentioning, as a student, there are lenders aiming high-interest payday loan products at you via social media advertising. It’s important to know that if you are going to borrow money as a student you should compare payday loan alternatives before entering into a credit agreement.
Here is a list of the top 10 banks that you can avail of your education loan from:
State bank of India provides students to raise the education loan for the technical, professional as well as part-time courses offered by institutions in India as well as abroad. The loan amount covers the cost of insurance. The maximum loan amount for Indian institutions is INR 40 lakhs and for foreign institutions is 1.5 crores. There is no minimum limit for the course duration. The rate of interest offered is 10.80%. It offers a lower rate of interest along with low processing fees and variety in the loan schemes. It takes a lot of time to process things which gives SBI a drawback.
Axis bank provides only one scheme of education loans. The student can raise a number of loans ranging from Rs. 50,000 to Rs. 75,00,000. This bank provides a loan for graduate and postgraduate courses, only to the students who have scored a minimum of 50% marks in 12th class or graduation. Bank interest rates range from 13.7% to 15.5%. Axis bank does not charge any processing fees up to a loan of Rs 10 lakhs. It is quick in processing things related to the loan application. It charges very high interest for late payments and is not specialized in educational loan schemes.
Union bank divides the education loan schemes into different categories like education loans for courses abroad, in India, and in premium institutions of India. Its rate of interest varies from 8.7% to 11.85%. It does not charge any processing fees and provides a 0.50% of concession on the interest rate for girls. It has slow documentation and application process.
It holds a maximum limit of Rs. 10 lakhs for the students who are willing to study in India. The rates of interest range between 9.2% to 13.60%. HDFC does not have an education loan scheme with respect to skill development courses, and so you will have to take a personal loan to that. It provides a very less loan for students to study in India along with hidden charges and high processing fees. It is quick in the application process and provides lower interest rates.
You can get a maximum loan amount of up to Rs. 1 crore for studying abroad and Rs. 50 lakhs for studying in India. ICICI bank interest rates start from 11.5%. The only plus point that makes ICICI bank different is that you do not need to keep collateral for a loan up to Rs 20 lakhs for graduation courses and Rs. 40 lakhs for post-graduation courses. It provides a moratorium period that is limited to 6 months after the completion of the course, no matter what the employment status is. There are hidden charges present and interest rates are quite high.
The maximum loan amount that you can raise from this bank is Rs. 1.5 lakhs. It provides loans for vocational education and training. It follows the IBA education loan model so it provides Rs. 10 lakhs for studying in India and 20 lakhs for studying abroad. Getting a higher amount of loans becomes very difficult with Canara bank. Its rates of interest vary from 8.9% to 10.7%. It has a low processing fee and also provides concession on the interest rates for girls. The person applying has to undergo a lot of paperwork and hence the loan processing becomes difficult and slow.
It provides a special education loan to students who want to opt for management courses. The management quota loan scheme works on the ratio of 15:85 that is, you need to sponsor yourself by 15% of the total amount and the rest 85% will be sponsored by the bank. It provides the education loan without any upper limit, which is quite helpful to the students who wish to take admissions in the premium institutions that have high fees. its rate of interest ranges from 8.75% to 12.25%. It does not charge any processing fees up to a loan of Rs. 10 lakhs. It has a slow application process but provides concessional rates of interest to girls.
It has a uniques scheme called Baroda Vidhya under which this bank provides loans to the students who want a loan for elementary and higher secondary education. This scheme is basically meant for the economically weaker sections of the society to help them get quality education from a premium school. It has a competitive interest rate with no processing fee and the rates vary between 8.75% to 11.25%. The maximum amount that can be lent is Rs. 4 lakhs that needs to be repaid in 12 installments.
The maximum loan amount is restricted to Rs. 75 lakhs whether you want to study in India or abroad. Gyan Dipika is a scheme meant for the students who opt for a loan for their school education from nursery to class 12th without any collateral security. The maximum limit for this is 1 lakh and the repayment period is 3years. The interest rate for Gyan Dipika is 13% and education from top colleges is 10%. It provides concessional rates of interest to girls.
The applicant must have scored at least 60% in HSC/UG to avail of a loan from this bank. A student can avail of a loan from Rs. 5000 to Rs. 1.5 lakhs for a vocational course. It does not charge any processing fees and provides concessional rates to girls.