Education Loan: Check rate of interest charged by different banks to choose the best one for you

Education Loan: Facility of education loans through banks and NBFCs have made life easier for students as well as for their parents to make their dream fulfilled. Since pursuing higher education has no doubt become a costly affair, such loans not only help in getting the requisite amount for your studies but also provide a rebate in income tax. Education loans are repaid when you get a job after completing the course, but it may prove to be a big burden if you fail to manage it well. Students willing to avail this facility must compare interest rates of different banks prior to choosing one of these loans. 

Education loan is now becoming easier or the best way to pursue higher education without hampering your finances. For unemployed students, their guardian or parents need to be guarantors. Students must check the EMI amount that they would have to pay every month, besides checking interest rates offered by different banks to know which option would suit their budget. 

Let us have a look at Interest Rates offered by different banks on Education Loan.

1. SBI Education Loan: Education loan by the largest lender, State Bank of India (SBI), is very popular. The SBI's Education loan is available without any processing fee, while its repayment period is up to 15 years after completing the course. The bank offers a loan of up to Rs 20 lakh.

For loans up to Rs 7.5 lakh, the SBI charges an interest rate of 10.25% per annum, and for loan above Rs 7.5 lakh the rate is at 10.50 %.

2. Bank of Baroda (BoB) Education Loan: This PSU bank offers all types of education loan and amounts ar rate of 8.50% onwards.

3. Punjab National Bank (PNB) Education Loan: Students seeking Education loan from PNB need to know that it offers the same for different courses at different rate of interest.

Under PNB Kaushal, rate of interest is 8.55% onwards; PNB Saraswati/Udaan 10.30% onwards; PNB Pratibha loan is offered for admission to IITs, IIMs and XLRI Jamshedpur at rate of 8.45% onwards; PNB Pratibha loan for admission to other colleges is extended at rate of 8.55% onwards; and PNB Honhaar loan is available at rate of  10.45%.

4. Axis Bank Education Loan: This private lender offers education up to Rs 4 lakh at rate of 15.20%, and loans over Rs 4 lakh and upto Rs 7.5 lakh are available at rate of 14.70%, while amount over Rs 7.5 lakh is offered at rate of 13.70% per annum.

5. Kotak Mahindra Bank Education Loan: This private lender also offers education loan. However, all loan types and amounts are charged at interest rates of 11.5% to 24%.

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Notably, prior to taking such loan, students, as well as their parents, must be very clear how much amount will serve their purpose.