Last Updated on Jul 25, 2023 by Vyshakh
In pursuit of higher education and career aspirations, many students in India seek financial support through education loans. These loans enable them to fulfil their academic dreams. However, with numerous options available in India, deciding on the best education loan can be a daunting task. But worry not! In this article, let’s dive into a list of the best banks for student loans in India, along with learning about features, benefits, eligibility criteria, and more.
Table of Contents
What is an education loan in India?
An education loan is a financial aid that students apply for in order to meet the financial requirements for their education. The sum received can be used to cover tuition, housing, fees, and other educational expenses. Education loans are offered by many banks and NBFCs in India. Before we learn more about it, let’s look at the best banks for education loans in India.
Best banks for education loans in India
| Bank Name | Interest Rate | Finance | Repayment Period |
| Allahabad Bank | Base Rate + 1.50% (0.50% concession for girls) | Minimum 50,000 | Loan up to 50,000 – up to 3 yrs Loan above 50,000 and up to 1 lakh – upto 5 yrs Loan above 1 lakh – up to 7 yrs |
| Andhra Bank | Up to 7.50 lakh- Base Rate + 2.75% Above 7.50 lakhs – Base Rate + 1.50% (0.50% concession for girls) | Minimum Rs. 20,000 Maximum Rs. 20 Lakhs | Loan up to 50,000 – up to 2 yrs Loan above 50,000 and up to 1 lakh – 2 yrs to 5 yrs Loan above 1 lakh – 3 yrs to 7 yrs |
| Axis Bank | Up to 4 lakh – 6.50 – 8.70% Loans greater than Rs. 4 Lakhs and up to Rs. 7.5 Lakhs – 6.50% to 8.20% Loans greater than Rs. 7.5 Lakhs – 6.50% to 7.20% | Minimum Rs. 50,000 | 12 to 240 months |
| Bank of Baroda | Above Rs. 4 lakh- Base Rate + 2.50% Above 7.50 lakhs – Base Rate + 1.75% (0.50% concession for girls) | Minimum Rs. 20,000 Maximum Rs. 20 Lakhs | 120 maximum instalments for loan amount up to Rs 7.50 lakh 180 maximum instalments for loan amount above Rs 7.50 lakh |
| Bank of Maharashtra | Up to Rs. 4 lakh- Base Rate + 2.50% Above Rs. 4 lakhs & up to Rs. 7.50 – Base Rate + 2% Above Rs. 7.50 lakhs – Base Rate + 1.25% (0.50% concession for girls) | For India: Max Rs. 10 lakh For abroad: Max Rs. 20 lakh | 5 yrs |
| Bank of India | Upto Rs. 7.50 lakh- Base Rate + 3% Above Rs. 7.50 lakh – Base Rate + 2.50%. (0.50% concession for girls) | For India: Max Rs. 10 Lakh For abroad: Max Rs. 20 lakh | Up to Rs.7.50 lakh: 10 yrs Above Rs.7.50 lakh: 15 yrs |
| HDFC Bank | Starting from 9.50% p.a. | Up to Rs.150 lakh | Up to 15 yrs |
| PNB Bank | Upto Rs. 4 lakh- Base Rate + 2% Above Rs. 4 lakhs & upto Rs. 7.50 – Base Rate + 3% Above Rs. 7.50 lakhs – Base Rate + 2.50% (0.50% concession for girls) | For India: Max Rs. 10 lakh For abroad: Max Rs. 20 lakh | Up to 15 yrs |
| Punjab and Sind Bank | Upto Rs. 4 lakh- Base Rate + 3% Above Rs. 4 lakhs & up to Rs. 7.50 – Base Rate + 3.25% Above Rs. 7.50 lakhs – Base Rate + 2.50%. (0.50% concession for girls) | For India: Min Rs. 20,000, Max Rs. 10 lakh For abroad: Max Rs. 20 lakh | Minimum 2 yrs to 15 yrs(Depends upon loan amount availed) |
| State Bank of Hyderabad | Up to Rs. 4.00 Lakh – 11.50%Above Rs. 4.00 Lakh – up to Rs.10.00 Lakh – 12.50% | For India: Max Rs. 10 lakh For abroad: Max Rs. 20 lakh | Up to 7 yrs |
| State Bank of India | Upto Rs. 4 lakh- Base Rate + 2% Above Rs. 4 lakhs & upto Rs. 7.50 – Base Rate + 2% Above Rs. 7.50 lakhs – Base Rate + 1.70% (0.50% concession for girls) | Maximum Rs. 30 Lakh | Up to 15 yrs |
| Syndicate Bank | Upto Rs. 4 lakh- Base Rate + 2.25% Above Rs. 4 lakhs – Base Rate + 2.75% | For India: Max Rs. 10 lakh For abroad: Max Rs. 20 lakh | Up to Rs.7.50 lakh: up to 10 yrs Above Rs.7.50 lakh: up to 15 yrs |
Note: Please be aware that the data provided is subject to change in accordance with each bank’s regulations. Before finalising your best education loan option, do check the official website of the respective bank for the most up-to-date information.
Features and benefits of education loan
- The loan amount can go up to Rs. 50 lakh for domestic students and up to Rs. 1 cr. for international students.
- Education loans are much cheaper than other forms of unsecured loans, such as personal loans.
- Some banks offer collateral-free loans if the amount isn’t too high.
- Education loans usually have longer repayment tenures.
- Students applying for loans can enjoy tax benefits under the Income Tax Act.
Eligibility criteria for education loan
- Citizens of India, Non-Indian Residents (NRIs), Overseas Citizens of India (OCI), and Persons of Indian Origin (PIOs).
- Students born to Indian parents abroad and wish to study in India can also apply for education loans in India.
- Applicants need to put any of the mentioned as collateral against the loan: Residential or commercial property, plot, fixed deposits, and insurance.
What documents are required for education loans in India?
The following documents are required for the education loan application:
- KYC documents such as Aadhar Cards, PAN cards, etc.
- Admission letter
- Fee structure
- Co-applicant KYC and income proof in some cases
Note that the mentioned documents are basic documents needed for an education loan application in India. Additional documents may be requested in some cases.
Conclusion
Choosing the best education loan is a crucial decision. Therefore, consider factors such as interest rates, tenure, repayment options, and other loan terms before finalising. Further, it is wise to consult a financial advisor and take enough time to thoroughly understand your narrowed-down options for the best education loan. Here we have answered some frequently asked questions that you might get while you are researching for the best education loan in India.
FAQs
What is the maximum education loan you can get in India? / How much can a student get an education loan in India?
The maximum education Loan limit is Rs. 125 lakh for study in India and Rs. 150 lakh for study abroad. However, before you apply for a loan, check the maximum and minimum amount limit of the bank you choose.
What is the best education loan in India without collateral?
There are many banks in India that offer the best education loan without collateral. Some of them are HDFC Bank, HSBC, State Bank of India (SBI), Punjab and Sind Bank, IDBI Bank, ICICI Bank and Bank of India.
Can I get Rs. 20 lakh for an education loan in India?
There are many banks in India that offer education loans with an amount as high as Rs. 20 lakh and more. The availability of an education loan with such a high amount depends on the lending bank or institution’s policies, your creditworthiness, and the course you are pursuing.
Is an education loan easy to get?
Yes. Getting a student loan in India is a straightforward process as government and private banks and NBFCs offer such loans.
As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
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