Cheap Interest rates for education loans in 2022
A student’s education loan interest rate, just like any other personal loan provided by public or private sector banks, determines how much he or she will need to repay at the start of the equated monthly installment (EMI).
You can find here a list of education loan schemes and interest rates currently offered by public and private sector banks in India. By doing so, you will be able to determine what type of plan would be most suitable for you.
| COMPANY | INTEREST RATE RANGE | PROCESSING FEE |
|---|---|---|
| Bank of India | 10.45% to 11.25% | Nil to INR 5,000 |
| Bank of Baroda | 8.45% to 11.8% | Nil to 1% |
| Bank of Maharashtra | 8.85% to 10.7% | Nil to 0.5% |
| Canara Bank | 8.8% to 10.9% | 0.5% |
| Central Bank of India | 10.3% to 10.9% | Nil to 1% |
| Punjab National Bank | 8.9% to 10.9% | Nil to 1% |
| Punjab & Sind Bank | 8.5% to 11% | Nil |
| State Bank of India | 7.95% to 10.55% | Nil to INR 10,000 |
| Axis Bank | 13.7% to 15.2% | Up to 2% |
| Federal Bank | 11.95% onwards | NA |
| City Union Bank | 14.25% to 16% | Up to 0.2% |
| CSB Bank | 13.74% | NA |
| IDBI Bank | 8.5% to 10.5% | Nil Up to 1.5% |
| IDFC First Bank | 9% to 15% | Up to 1.5% |
| ICICI Bank | 9.5% onwards | Up to 2% |
| Kotak Mahindra Bank | Up to 16% | NA |
| Tamilnad Mercantile Bank | 11.5% to 11.75% | Nil to 1% |
| South Indian Bank | 9.95% to 16.85% | 1% |
| Karur Vysya Bank | 11.5% to 12.5% | Nil |
| Nainital Bank | 9.65% to 10.4% | Nil to 1% |
The Facts You Need To Know About Education Loans
- In general, banks offer concessions to women, SCs, STs, minorities, and physically challenged students (normally 0.50%).
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A number of government schemes, such as the CGFSEL, the Dr Ambedkar central scheme for education loans, and the Padho Pardesh Scheme, offer subsidies on interest charged on loans.
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Some banks offer their existing customers with high credit scores some concessions on the interest rate.
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Generally, education loans taken for studies in India have higher interest rates than loans taken for studies abroad
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The Section 80E tax exemption is available to borrowers.
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During the moratorium period, or while you are studying, banks may offer a concession in ROI (up to 1%) on the principal loan amount.
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In some cases, banks may charge an additional interest rate as a risk premium (up to 0.05%) if the lender does not obtain credit life insurance, which ensures that debts are paid after the insurer passes away.
FAQ about Education Loans
No, there are NO penalty charges for prepayment.Yes, you can prepay your student loans at any moment.Yes, it is possible to cancel an approved education loan. However, you must be familiar with the requirements to follow in order to cancel the education loan. You must present certain proof in addition to fulfilling certain requirements in order to satisfy those particular requirements.Visit Money Scaler to be updated with latest trends.
