Kuchh Baat Aapke Interest Ki

Education Loan Interest Rates in India 2017 - 2018

Last Updated 29th Apr 2017

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, Apr 2017, Best rates

Bank Education Loan Interest Rates in India Education Loan Interest Rates in Abroad
Avanse DHFL (3/5.0) 1 Users 11.50% - 11.50% 11.50% - 11.50% Explore Apply Now
Axis Bank 15.00% - 17.50% 15.00% - 17.50% Explore Apply Now
Bank of Baroda 10.35% - 11.40% 11.40% - 12.15% Explore Apply Now
Bank of India 10.25% - 11.00% 11.70% - 13.20% Explore Apply Now
Bank of Maharashtra 10.45% - 10.95% 10.45% - 10.95% Explore Apply Now
Canara Bank 10.65% - 11.35% 10.65% - 11.35% Explore Apply Now
Catholic Syrian Bank 14.50% - 15.00% 14.50% - 15.00% Explore Apply Now
Central Bank of India 10.00% - 10.50% 10.00% - 10.50% Explore Apply Now
City Union Bank 14.50% - 15.50% 14.00% - 15.50% Explore Apply Now
Corporation Bank 10.75% - 11.10% 10.75% - 11.10% Explore Apply Now
Dena Bank 10.10% - 10.10% 10.10% - 10.10% Explore Apply Now
Federal Bank 10.65% - 14.00% 10.65% - 14.00% Explore Apply Now
IDBI Bank 9.70% - 10.70% 9.70% - 10.70% Explore Apply Now
Indian Bank 12.25% - 12.25% 12.25% - 12.25% Explore Apply Now
Indian Overseas Bank 10.65% - 11.65% 10.65% - 11.65% Explore Apply Now
Karnataka Bank 11.10% - 13.95% 11.10% - 13.95% Explore Apply Now
Karur Vysya Bank 12.25% - 13.00% 12.25% - 13.00% Explore Apply Now
OBC 11.15% - 11.40% 11.15% - 11.40% Explore Apply Now
PNB 10.50% - 12.50% 10.50% - 12.50% Explore Apply Now
SBI 9.35% - 10.75% 9.50% - 10.75% Explore Apply Now
Tamilnad Mercantile Bank 13.30% - 13.80% 13.30% - 13.80% Explore Apply Now
UCO Bank 10.60% - 11.00% 10.60% - 11.00% Explore Apply Now
Union Bank of India 10.15% - 10.65% 10.15% - 10.65% Explore Apply Now
United Bank of India 10.95% - 11.00% 12.00% - 12.00% Explore Apply Now

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

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Education Loan News - Apr 2017
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