Education Loan Interest Rates in India 2018 - 2019

Student Loan Interest Rates – Eligibility, FAQ's

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