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How To Apply For Education Loan in India? 2022-23 Banks List With Lower Interest Rates

Last updated on June 19th, 2021 at 07:04 pm

How To Apply For Education Loan in India

To get a successful life, quality education is basic need of it. However, with increasing college fees every year, it becomes difficult for a student to have a quality education. So, to fulfill your dreams and to get good education you need some loan to pay college’s fee. To help you out from this situation, we are here for you to discus on How to Apply For Education Loan in India?

 

Candidates who acquires talent and skills to make a mark in future but don’t have enough money for higher education, for them there’s a great solution to make their dream of studying true. Yes! Education Loan provides financial assistance to such needy and talent people… Candidates in need of this financial help from the bank they can check Banks List with Lower Interest Rates from this page easily.

How To Apply For Education Loan?

There are some basic requirements that need to be fulfilled while taking Education Loan. The list of conditions is mentioned below, have a look on it:

  • First thing is to know the fees of the course that an individual need to pursue and the applicant’s annual family income.
  • There must be a co-applicant, which can be either one of the parents or sibling or spouse.
  • Loans below Rs.4 lakh do not require a guarantor or security.
  • For loans above Rs. 4 lakh, there should be a third-party guarantor.
  • For loan amount more than Rs. 7.5 lakh, a collateral is necessary.
  • For studying abroad, a student must also look for part-time jobs or sponsorship as the loan amount itself is not sufficient.
  • Insurance is compulsory for studying abroad.

Step By Step Procedure: How To Get Education Loan From Bank

Popular Banks Offering Education Loans In India

1. State Bank of India
2. Axis Bank
3. United Bank Of India
4. HDFC Bank
5. Avanse Financial Services
6. Credila (HDFC Bank Company)
7. ICICI Bank
8. Indian Overseas bank
9. Punjab National Bank
10. Dena Bank
11. Vijaya Bank etc.

Please Pay Attention: Education Loan covers different expenses including tuition fees and other expenses and the repayment of it starts only after one year of the completion of the programme OR six months after getting a job, whichever is earlier. The period of repayment can continue for about 5-7 years. Only the interest has to be paid during the tenure of the programme.

Required Documents for the Application:

  • Attested copies of documents for proof of age/date of birth and proof of residential address
  • Passport size photo of the applicant, co-obligants and guarantors
  • Copy of mark sheets / degree certificates of previous academic qualifications
  • Income proof/latest income tax return of parents/co-obligants, guarantors
  • Details of collateral security along with valuation certificate of Govt. approved value
  • Details / statements of Bank accounts held by the student applicant / co-obligate (s) / guarantors (if any) for the last six months.
  • Copy of Passport / Visa, cost of air fare (documentary detail) in case of studies abroad

Get Details: Education Loan In India For Study Abroad

Banks List For Education Loan

Education Loan system of all Banks

Bank 1 Year to

< 2 years

2 Years to

< 3 years

3 Years to

< 5 years

More than 5
Allahabad Bank 8.75% 8.50% 8.50% 8.00%
Andhra Bank 9.25% 8.50% 8.60% 8.00%
Axis Bank 9.25% 8.50% 8.50% 8.50%
Bank of Baroda 9.35% 9.00% 8.50% 8.50%
Bank of India 9.25% 8.25% 8.25% 7.00%
Bank of Maharashtra 8.30% 8.60% 8.60% 8.30%
Canara Bank 9.10% 9.25% 8.75% 8.75%
Central Bank of India 9.25% 8.75% 8.80% 8.80%
Dena Bank 9.00% 9.00% 9.00% 8.75%
HDFC Bank 8.50% 9.25% 8.25% 8.25%
ICICI Bank 9.25% 9.25% 8.75% 8.75%
IDBI Bank 9.25% 9.25% 9.00% 9.00%
Indian Bank 9.50% 8.50% 8.50% 8.00%
Indian Overseas Bank 9.25% 8.75% 9.00% 9.00%
Indus Ind Bank 9.00% 8.75% 9.50% 8.75%
J&K Bank 9.50% 8.75% 8.50% 8.50%
Karnataka Bank 9.75% 9.50% 9.25% 8.75%
Karur Vysya Bank 10.25% 9.75% 9.00% 9.00%
Kotak Bank 9.25% 9.40% 9.25% 9.25%
Punjab and Sind Bank 9.55% 9.60% 9.05% 8.75%
South Indian Bank 9.75% 8.75% 8.75% 8.25%
State Bank of India 8.75% 9.25% 8.25% 8.50%

Know Here: Education Loan Documents Required India by Banks

Banks List With Minimum Interest Rate

Bank, Click for More Details Interest Rates* Lowest EMI per Rs. one lakh
HDFC Bank 11.49% – 20.00% Rs. 2,199
SBI 13.00% – 17.65% Rs. 2,683
ICICI Bank 11.49% – 22.00% Rs. 2,199
Axis Bank 15.50% – 24.00% Rs. 2,405
Citibank 11.75% – 15.75% Rs. 2,212
Bajaj Finserv 14.25% – 16.75% Rs. 2,340
Standard Chartered Bank 11.99% – 15.50% Rs. 2,224
Fullerton India 17.25% – 35.00% Rs. 2,898
Capital First 16.00% – 24.00% Rs. 3,516
Andhra Bank 13.95% – 16.00% Rs. 2,324
Bank of Maharashtra 14.20% – 15.15% Rs. 3,427
Canara Bank 13.65% – 13.65% Rs. 2,715
Dena Bank 13.00% – 14.00% Rs. 3,369
Union Bank of India 11.65% – 14.40% Rs. 2,207
Vijaya Bank 12.70% – 13.70% Rs. 2,260
Tata Capital 13.50% – 17.50% Rs. 1,846
Allahabad Bank 13.55% – 13.55% Rs. 2,304
Federal Bank 13.44% – 15.24% Rs. 2,705
IndusInd Bank 11.49% – 22.00% Rs. 2,199
Yes Bank 12.50% – 16.00% Rs. 2,250
Bank of Baroda 14.15% – 14.15% Rs. 3,425
Corporation Bank 13.50% – 14.50% Rs. 3,394
IDBI Bank 13.20% – 13.75% Rs. 2,286
Indian Bank 14.50% – 17.00% Rs. 3,442
Indian Overseas Bank 12.70% – 15.25% Rs. 2,260
PNB 12.45% – 15.45% Rs. 2,247
Karur Vysya Bank 13.90% – 16.40% Rs. 3,413
Syndicate Bank 14.30% – 14.30% Rs. 2,342
Kotak Bank 11.50% – 24.00% Rs. 2,199

Do You Know? Interest Rates Of Education Loan

In India, interest rates for education loans vary according to banks. However, it can be anywhere between 12.00 % and 16.00 %, which of course depends on the bank’s base lending rate and other factors. The base lending rate for banks in India, as directed by the RBI, is around 9- 10%.

Procedure to Get Student Loan Easily: How To Apply For Student Visa

Features & Benefits of Education Loans

When it comes to a complete education loan, Banks individually offers exclusive features and benefits.  Commonly, the following are offered –

  • Anyone with a will to study can apply as it is universally available.
  • Education loans are provided to pursue all types of academic courses (graduation, post-graduation, other certificate courses) in India and abroad.
  • Loan amounts can vary from a minimum of Rs.10 lakhs to a maximum of Rs.15 lakhs.
  • For education abroad, bank provides loans to the quantum of Rs.20 lakhs.
  • Usually, female students are offered discounts and/or lower interest rates when it comes to education loans.
  • Government sponsored subsidy schemes, such as ‘Central Scheme to provide Interest subsidy (CSIS)’ help students from the economically backward sections of society avail the benefits of a robust loan for education.
  • The applicant need not repay the borrowed amount immediately. Post the completion of the course, the repayment tenure can stretch upto 5-7 years.
  • Generally, loans below Rs.4 lakhs do not require a security or guarantor.

Candidates who want to apply for the education loan in any bank they may fill the application form for the loan through the bank main branch or any other branch. Applicants must bring all type of educational credentials and other documents as provided above.

Complete details on How to Apply for Education Loan in India are well furnished in this page. Aspirants can go through this page completely and get to know How to Apply for Education Loan. Join us on Facebook or Google + or bookmark our web page that is www.goldeneraeducation.com to get latest updates.