2021-07-26 11:02:50

Education Loan

If an applicant is searching for an education loan, the rate of interest for such loans ranges from 8.45% to 15.2% per annum and come with flexible terms up to 15 years. The sum that an applicant could borrow is Rs. 1.5 crore or more reliant on the bank's policies. Education loans could also be utilized to gain tax benefits under Section 80 (E) of the Income Tax Act, 1961.

Who Could Apply for Education Loans

The general eligibility criteria for education loans in India include;

• The applicant should be an Indian resident

• The applicant should have secured admission into a recognized course in India or abroad

• The NRI applicants should have a valid Indian Passport

• The applicant should provide collateral enforceable in India

Documents Required Applying for an Education Loan

The documents required to be provided when applying for an education loan include:

Documents	For Study abroad loans	For Domestic loans
Identity Proof	Voter’s ID Card, Aadhar card, Any government-issued identity card
Address Proof	Voter ID; Aadhaar card; Utility bills etc
Income Proof	Income Tax returns of parents of the guarantor; 6 months bank statement
Proof of Education	Marks card starting from 10th standard
Other documents	• Completed loan application form • Passport size photograph of the applicant • Passport, Visa copy (for studies abroad)	Completed loan application form Passport size photograph of the applicant

Education Loan offered by different Banks

State Bank of India Education Loan Offers

SBI gives different education loans towards meeting the necessities of the applicants. The bank also gives loans that assist students to study in Indian institutes, towards pursuing education abroad and even go for professional courses.

Key Highlights:

• Good rate of interest

• No processing fee

• 100% funding

• Quick loan sanction

Interest Rate	Loan term	Maximum loan sum
8.45% to 10.70% p.a.	15 years	Up to 1.5 crore

Axis Bank Education Loan

Axis Bank’s education loan assists the applicants to afford education in India and abroad. The bank gives a wholesome coverage for tuition along with living expenditures.

Key Highlights:

• Easy documentation procedure

• Minimum loan Rs. 50,000

• Fast loan disbursal

• No margin on loans up to Rs.4 lakh

Interest Rate	Maximum loan sum	Pre-payment charges
13.7% to 15.2% per annum	Up to Rs.75 lakhs	NIL

Punjab National Bank Education Loan Offers

Punjab National Bank gives many education loans intended for higher studies in India as well as abroad. The bank also gives loans for vocational training and concessional loans for individuals with disabilities.

Key Highlights:

• Concessional loans accessible

• Low rate of interest

• No margin on loans up to Rs.4 lakhs

Interest Rate	Loan term	Maximum loan sum
8.95% to 12.45%	Up to 15 years	Depends on course and repayment capacity

The education Loan Interest Rates Comparison

There many private and public sector financial institutions in India that offer education loans towards aspiring apprentices who wishes to carry on their studies in premier institutes in the nation or out of the country.

A comparison on the rate of interest given by the banks in India:

Bank	Rate of Interest
State Bank of India	8.30% per annum to 10.70% per annum
Bank of Baroda	8.50% per annum to 11.05% per annum
United Bank of India	10.75% per annum to 10.80% per annum
Central Bank of India	9.80% per annum to 10.30% per annum
Bank of Maharashtra	10.15 per annum to 10.65% per annum
Canara Bank	8.50% per annum to 11.50% per annum
Dena Bank	8.25% per annum to 10.25% per annum
Indian Overseas Bank	8.60% per annum to 11.40% per annum
Punjab National Bank	8.25 per annum - 10.75% per annum

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