If you are searching for an education loan, the interest rates range from 8.45% to 15.2% per annum. These loans come with flexible tenures of up to 15 years. You can borrow Rs 1.5 crore or more.
New Delhi: Good education has become expensive in the last couple of years. Nowadays, savings are not enough to fund a child’s high school education and college education. Education loan is the best way to fund higher education without disturbing your finances. You can take an education loan for courses in India or abroad.
For unemployed students, their guardian or parents need to be guarantors. If you are searching for an education loan, the interest rates range from 8.45% to 15.2% per annum. These loans come with flexible tenures of up to 15 years. The amount that you can borrow can be Rs 1.5 crore or more depending on the banks’ policies.
On Children’s day 2019, here’s education loan interest rate of SBI, HDFC, PNB and ICICI Bank compared for you:
1. State Bank of India: India’s largest lender SBI offers education loan services. A term loan is granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured. As per SBI website, repayment period of up to 15 years after course period + 12 months of repayment holiday is given. Also, no processing/upfront charges are levied on education loans.
Expenses Covered
1. Fees payable to college/school/hostel
2. Examination/Library/Laboratory fees
3. Purchase of books/equipment/instruments/uniforms, purchase of computers- essential for completion of the course (maximum 20% of the total tuition fees payable for completion of the course)
4. Caution deposit/building fund/refundable deposit (maximum 10% of tuition fees for the entire course)
5. Travel expenses/passage money for studies abroad
6. Cost of a Two-wheeler up to Rs 50,000
7. Any other expenses required to complete the course like study tours, project work etc.
Interest rate:
2. Punjab National Bank: There are three education Loan schemes offered by the bank namely: PNB Saraswati, PNB Pratibha and PNB Kaamgar. The student should be Indian national to avail the loan. Finance is provided to meet all type of expenses which are necessary for the completion of the course and also include purchase of books, equipments, computer, travelling, study tours, boarding, lodging besides all types of fees.
PNB Saraswati: Regular Scheme for pursuing higher studies in India and Abroad. The scheme aims at providing financial support to meritorious students for pursuing higher education in India and abroad.
PNB Pratibha: Collateral free education loans at lower ROI to those students getting admission in of 103 premier institutions in India, as identified by Bank.
PNB Kaamgar: The education loan scheme PNB Kaamgar aims at providing financial support from the banking system to those who have the minimum educational qualification, as required by the institution/organization running the course eligible under the scheme.
Interest rate:
3. HDFC Bank: HDFC Bank sanctions education loans up to Rs 10 lakhs for studies in India. No collateral is required to be submitted as security for loans up to Rs 7.5 lakhs. Any loan amount exceeding Rs 7.5 lakh would require a collateral security in the form of residential properties, HDFC Bank Fixed Deposit, LIC, NSC or a KVP policy.
Borrowers availing loans up to Rs 7.5 lakhs can extend their repayment tenures up to 10 years and for loan amounts above Rs 7.5 lakhs the tenure can be chosen up to 15 years, after the moratorium period.
Interest Rate:
4. ICICI Bank: The bank presents education loans up to Rs 50 lakh for your educational requirements in India and up to Rs 1 crore for overseas. You can visit the nearest ICICI Bank branch, fill the form and get started with the loan approval process you can apply online as well. Loans are offered for domestic institutes/ international institutes and both Under Graduate (UG), Post Graduate (PG) courses are covered.
Other expenses like student exchange travel expense, laptop are also covered. The loans also ensure pre-visa disbursal for students applying for overseas education. The bank also assures preferential forex rates for international disbursements.
Interest rate:
It is worth mentioning that an education loan helps you not only finance your foreign studies but it can save you a lot of tax as well. If you have taken an education loan and are repaying the same, then the interest paid on that education loan is eligible for deduction from the total income under Section 80E of the Income Tax Act. However, the deduction is provided only for the interest part of the EMI. There is no limit on the maximum amount that is allowed as deduction. You, however, need to obtain a certificate from your bank.
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