Education Loan Interest Rates in India 2018 - 2019

Last Updated 19th Feb 2018

Education Loan for Courses in India, US, France and Australia

  • Anyone in the country who wants to get higher education in India and abroad can apply for Education Loan
  • Repayment of the Education Loan starts after the completion of the course for a tenure of 5 to 7 years
  • Minimum amount to get Educational Loan should be Rs. 50,000. No guarantor or collateral is required for loans below Rs. 4 lakh
  • Some banks offer discounts or lower interest rates for female students on Education Loan
Apply Education Loan @ 11.10%*
Rs.
Rs.
+91

Education Loan Interest Rates comparison, Feb 2018, Best rates

Bank Education Loan Interest Rates in India Education Loan Interest Rates in Abroad
Avanse DHFL Education Loan 11.50% 11.50%
Axis Bank Education Loan 15.00% 15.00%
Bank of Baroda Education Loan 10.35% 11.40%
Bank of India 10.25% 11.70%
Bank of Maharashtra 10.45% 10.45%
Canara Bank 10.65% 10.65%
Central Bank of India 9.80% 9.80%
Corporation Bank 10.75% 10.75%
Dena Bank 10.10% 10.10%
Federal Bank 10.60% 10.60%
IDBI Bank 9.70% 9.70%
Indian Bank 12.25% 12.25%
Indian Overseas Bank 10.40% 10.40%
Karnataka Bank 11.10% 11.10%
Karur Vysya Bank 12.25% 12.25%
OBC 10.15% 10.15%
PNB 8.15% 10.00%
SBI 9.35% 9.50%
UCO Bank 10.60% 10.60%
Union Bank of India 10.15% 10.15%
United Bank of India 10.95% 12.00%

Student Loan Interest Rates – Eligibility, FAQ's

Determinants of Eligibility for Education Loans

Age of the Applicant
  • Upto 35 years for non-employed personnels
  • Upto 45 years in case of working employees/ executives
Who is eligible
  • An Indian National having secured admission to professional/technical courses in recognized institutions
  • Students seeking admission for higher studies
  • Permanent employees who are employed for not less than three years with any organisation and who intend to acquire higher professional qualifications and have secured admissions in a reputed institute
Maximum Loan Amount
  • Typically upto Rs. 10 lakh for studies in India; with minimum margin money (own contribution by student/ family) of 5% of total cost
  • Typically upto Rs. 20 lakh for studies abroad, some banks offer upto Rs. 30 lakhs with minimum margin money (own contribution by student/ family) of 15% of total cost
  • Upto Rs. 30 lakh for studies at IIT's, IIM's and ISB's with minimum margin money (own contribution by student/ family) of 5% of total cost
Which Cost Heads/ Expenses are Funded by Bank
  • Admission fees including Monthly Fees and Examination Fees
  • Books, Stationery and Equipments
  • Airfare for joining the course abroad
  • Boarding & lodging expenses of authorized hostel or boarding house
  • Expenses required to complete the courses like those on study tours, project work and thesis etc.
Co-borrower/ Guarantor/ Security
  • Loans upto Rs 4 lakh: Parents or guardian or husband/in-laws in case of married woman required need to be co-borrower
  • Loans above Rs 4 lakh and upto Rs 7.5 lakh: Parents or guardian or husband/in-laws in case of married woman need to be co-borrower and a third party guarantee needed as collateral
  • Above Rs 7.5 lakh: Parents or guardian or husband/in-laws in case of married woman need to be co-borrower and tangible security equivalent to 100-133% of loan amount as collateral
Repayment Frequency
  • Quarterly or monthly rests
  • Repayment typically starts 1 year after completing the course or six months after getting a job, whichever is earlier
Repayment Period
  • Varies from bank to bank - can range from 7 to 15 years
  • There is no prepayment penalty or charge on early prepayment or foreclosure
Key Appraisal Criteria
  • Good academic record with atleast 50% marks in the qualifying examinations
  • Admission letter from bonafide educational institution
  • Passport/visa/i-20 form for studies abroad
  • Net-worth and credit history (CIBIL) of the guarantors

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
Why MyLoanCare???

Nowadays, banks give various offers on Education Loan to give the best rates to individuals. To get Education Loan with lowest interest rate and lowest EMI, compare new rates and offers of all banks at MyLoanCare. You can do rates comparison, check your eligibility, apply online and get the cheapest rate on Education Loan. MyLoanCare helps you throughout the loan process from the day you apply to the time you get complete disbursement. You can even track your loan status after getting registered with us. MyLoanCare make it easy for you to get hassle free Education Loan with ultimate cashback and refer and earn benefits. So, apply for Education Loan today and enjoy the benefits.


Education Loan News - Feb 2018
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