Education Loan Interest Rate
| Interest Rate | 8.40% onwards |
| Minimum Tenure (excluding grace period) | 5 years |
| Moratorium Period (after course completion) | 1 years |
| Minimum Loan amount | Rs. 50,000 |
| Maximum Loan without collateral | Rs. 4,00,000 |
| Maximum Tenure | 15 years |
- Check best offers starting @ 8.40 %*
- Special discounts in rates for female borrowers.
- Indian residents can get an education loan to study in India or abroad.
Compare Student Loan Interest Rate
| Bank | Education Loan Interest Rates in India | Education Loan Interest Rates in Abroad |
|---|---|---|
| Avanse DHFL Education Loan | 12.75% | 12.75% |
| Axis Bank Education Loan | 13.70% | 13.70% |
| Bank of Baroda Education Loan | 8.00% | 9.15% |
| Bank of India | 9.85% | 9.85% |
| Bank of Maharashtra | 8.70% | 8.70% |
| Canara Bank | 9.95% | 9.95% |
| Central Bank of India | 6.85% | 8.35% |
| Corporation Bank | 6.90% | 6.90% |
| Federal Bank | 10.05% | 10.05% |
| IDBI Bank | 8.40% | 8.40% |
| Indian Bank | 8.60% | 10.60% |
| Indian Overseas Bank | 10.65% | 10.65% |
| Karnataka Bank | 9.84% | 9.84% |
| Karur Vysya Bank | 11.35% | 11.35% |
| OBC | 10.40% | 10.40% |
| PNB | 8.45% | 10.45% |
| SBI | 8.85% | 10.00% |
| UCO Bank | 10.65% | 10.65% |
| Union Bank of India | 10.20% | 10.20% |
| United Bank of India | 10.50% | 10.50% |
Education Loan
A loan taken to meet tuition fees, hostel fees, and other related expenses for pursuing a specified educational course in an institution is called Education Loan. Banks offer student loans for pursuing pre-specified courses in India and abroad from certain institutions. Banks release a list of permitted courses and institutions for which it will give education loans. So, the course you want to pursue is within the bank’s list along with the institution you wish to join, then you can apply for an education loan.
Education Loan Eligibility
Determinants of Eligibility for Education Loans
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Student Loan Application Process
- Attach your admission letter received from the college or institution along with your application.
- Keep the primary documents like PAN card, age proof, address proof, etc., ready.
- Compare various education loans based on the interest rate, tenure, loan amount, etc.
- The mark-sheet of 10th and 12th would come handy. Keep them ready for attesting.
Tax benefit on Educational Loan
- Interest paid on education loan can be claimed as deduction from income of borrower (student) as per Section 80E of the Income Tax Act, 1961
- Rebate can be claimed without any upper ceiling or cap
- Rebate is available for full time courses, part time courses and vocational courses pursued in India and abroad
- Rebate can be claimed within eight (8) years post moratorium period subject to actual payment of interest
- Rebate is available for interest paid on loans for education of self, spouse, children or for the student of whom he/she is the legal guardian
- No rebate is available for principal repayment
Documents Required for Education Loan
- Duly filled the application form along with two passport size photographs of the applicant and co-applicant.
- Admission Letter from the Institute. It should have the institute name and address on the letterhead.
- The detailed cost breakup of the course from the Institute, which specifies the tuition fee, the term of the course, year-wise charges, and expenses.
- The academic record of the applicant/student, which should include 12th Marksheet, certificate of any subsequent education like graduation or post-graduation, mark sheet of the entrance exam (if any), and any scholarship document.
- An affidavit or a declaration that no loan has been availed from any other bank or financial institution.
- Any ID proof like PAN card, Aadhar card, Driving License, passport, etc.
- Any address proof like Ration Card, Driving License, Passport, Aadhaar Card, etc
- For age proof Birth Certificate or 10th Class certificate.
FAQs on Education Loan
Some examples of the courses eligible for education loan are:
- Graduation and Post-graduation courses
- Professional courses
- Diploma/degree courses by recognized institutions.
Yes, you can avail tax benefits under section 80C and 80E of the Income-tax Act, 1961 for education loan’s interest and payment.
What is the age limit for availing education loan?For availing student loan/education loan, usually, the age of 30 is the limit. However, in some cases, it may be higher.
What can I do if my loan application is rejected?Usually, banks provide a reason when they reject an education loan application. In case you were not informed by the bank about the reason, you can file an RTI petition.
Can I transfer my education loan to another bank with a lower rate of interest?Yes, you can transfer your education loan to another bank. But in such a case, your current bank will charge a certain fee and also the new bank will charge a processing fee. Thus, consider all the factors and expenses before making a decision.
What are the factors that lenders consider for approving an education loan?Some of the factors that lenders consider while assessing an education loan application are:
- The Institute and the course
- The Loan amount
- Repayment capacity of the family
- Academic Performance
- Estimated income after completion of the course and securing the job.
In case you want to finance your education, but the course or the institution you wish to join is not in the bank’s list, then you can consider the option of availing a personal loan.
Also, if you or your parents own a property, then loan against property is also an excellent option to finance your education.
Nowadays, almost all banks offer attractive schemes on Education Loan at competitive rates with many customer friendly features. You can do rates comparison, check your eligibility, calculate EMI, apply online and get the best Education Loan rates. MyLoanCare helps you throughout the loan process from the day you apply to the time you get disbursement. You can register with us, track your loan status on a regular basis and get an option to earn attractive cashbacks and refer and earn benefits.
