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Accelerate Your Dream of Studying Abroad with the Right Education Loan

Education Loan

Education is every child’s birthright and parents go out of their way to provide a quality education for their children. But, with the rising cost of living, it becomes increasingly difficult for parents to pay for the expenses that go into a child’s education. Be it in India or overseas, college fees are extremely high and cause much distress amongst parents who have to shell out thousands of rupees per month. To address this issue the concept of Education Loans was launched. Education loans in India have been around for more than a decade. Today, students apply for education loans and avail of money from multiple sources – banks, NBFCs, and private companies. However, it is not always easy to choose one over the other, especially because of the different eligibility criteria and loan terms that are applicable to the various education loan options in India.

Education loans in India are from different banks, and each bank has its own interest rate which keeps changing from time to time. In this article, you will get to know the list of the education loan rates in India in 2020. So, if you are interested to know the latest education loan interest rates of leading banks and want to make an informed decision after comparing it all, stay tuned till the end of the blog.

Features of an Education Loan

  • Avail of a Loan Amount up to Rs. 1 Crore

  • Flexible Loan repayment tenure of upto 15 years

  • Education loans for studies in India and abroad.

  • Loan disbursal even before student visa application ( in some cases)

  • Moratorium period of up to 1 year after course completion

  • No need to pay during your Moratorium Period

  • Tax benefits up to 8 years on the interest paid

  • Bank employees’ children have access to preferential rates at several banks.

  • Interest Rate concession for Female Students ( in some cases)

  • Certain banks offer doorstep document collection facility

General Required Documents for Education Loan

Every bank, NBFC, or any other lender has a different set of required documents to proceed with the application. Whereas, there are a few general documents that are required by almost all lenders. Here we are listing a few for you:

  • Admission letter from the educational institution

  • Marksheets (previous education – school/college)

  • Age proof

  • ID proof

  • Address proof

  • Signature proof

  • Salary slips

  • Recent bank account statements

  • ITR with income computation

  • Audited balance sheet

  • Recent bank statements

  • Proof of turnover (service tax return/sales receipt)

  • Completed application form with signature

  • Latest passport size photographs

  • Appropriate Visa for studies abroad

General Eligibility of Education Loan

  • The applicant should be an Indian Resident

  • The minimum age for a loan applicant should be 18 years and the maximum should be 35 years.

  • Students should have secured admission to a higher education course in recognized institutions by passing entrance tests.

  • The co-applicant must be having a regular income

Education Loan Interest Rates

The education loan market is a crowded one, with banks and NBFCs offering loans at all kinds of interest rates. But here we will introduce you to the top lending platforms with low-interest rates on Education loans.

Bank

Interest Rate

Punjab National Bank

8.15% p.a. onwards

State Bank of India

Up to 10.65% p.a.

IDBI Bank

Up to 10.00% p.a. onwards

HDFC Bank

9.55% to 13.25% p.a.

Canara Bank

Up to 10.40% p.a.

Axis Bank

13.70% p.a. to 15.20% p.a.

Kotak Mahindra Bank

Up to 16% p.a.

Summing it Up

In this age of information and indecision, when you have an education loan in hand, life will become much easier. You will be able to clearly see the path that you have to take and what lies in the distance. Therefore, be ready for your children’s bright future to come by applying for a loan today. Choosing a good education loan with the lowest interest rate, the best customer support, and flexible terms will help you make your dreams come true.

FAQs

The general expenses that get covered under an Education Loan are Tuition fees, Hostel fees, Travel expenses passage money for students studying abroad, Insurance premiums, Cost of books/equipment/instruments/uniform, Examination/laboratory/library fees, Cost of a computer/laptop required for course completion, Caution deposit, building fund/refundable deposit supported by institution bills/receipts, Any other expenses required to complete the course such as study tours/thesis/project work.

The maximum amount of an education loan goes up to Rs. 1 crore

No, the applicant doesn’t need to pay anything during their moratorium period.

Yes, Section 80E of the Income Tax Act of 1961 allows you to deduct interest paid on your student loan. This deduction is available only for individual borrowers and is offered only for the purpose of higher education.

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