Almost every student prefers to study the best courses at the best institutes. But not everyone can afford their fees for education, so they look to take an education loan for their studies. Unfortunately, most of them have no idea which bank they should prefer for taking a loan. So this blog features how you can get a study loan in India at the minimum interest rate.
In this article, you will find some tips and tricks to help you get a study loan in India. Moreover, you will also get to know about the top banks that offer education loans at minimum interest. Most loans cover your education fees and other study materials such as books, laptops, uniforms, and library fees.
Students can take the study loan to study in India and even abroad. However, you can get a loan for the courses and institutes your bank offers. Some study loans may also cover your hostel charges and travel expenses(abroad). So now let’s see the top banks that offer you education loans at the least interest rate.
Best banks offering study loans in India at a minimum interest rate
1. Central Bank Of India
The first name that comes to our mind when discussing the minimum interest rate for education loans is the Central Bank of India. The interest rate for this bank starts at around 6.85% per annum, and it varies up to 9% per year. However, the interest rate may differ depending on the sum assured for the loan and what type, of course, you’re pursuing and in which university.
2. Punjab National Bank
Punjab National Bank also offers their student customers study loans at affordable interest rates. Their loan interest rate starts at around 8.40% and has a maximum of 9.90% per annum. For some loans, you don’t need to pay processing fees. You can get a loan for a maximum of 15 years and have no need for security for up to 7.50 lakh.
3. State Bank Of India
The State bank of India also provides study loans at attractive interest rates. Its interest rate starts at around 7.50%, and depending on the situation; you can get a maximum of 40 lacs of the loan without any security. But your parents/guardians need to be the co-borrower. On some specified study loans, there will be no processing fees.
4. Bank Of Baroda
Bank of Baroda also gives education loans at lucrative interest rates. 7.95% is the starting interest rate the Bank of Baroda offers its student customers. This bank offers you a maximum of INR 150 lakh loan amount. Moreover, some loans will have no documentation fees and processing charges.
5. Union Bank Of India
Union Bank of India also has impressive interest rates for students looking for study loan in India or abroad. Their interest rates start at about 7.50% p.a. You can also get a loan above INR 40 lakh, and the maximum time for the repayment of the loan is up to 15 years. Moreover, there is no need for security for the loan up to INR 4 lakh; however, the loan should come under CGFSEL.
Note: The interest rate for these banks mentioned above are subject to change, and banks can change them anytime. So always check their official websites for better results.
Important tips for taking study loan in India
1. Follow the eligibility criteria
Almost every bank or lender has its own eligibility criteria, and the borrower has to meet these criteria to get the loan approval. Besides this, you also need to check on which courses and institutes the loan is applicable to. Further, it would be best if you also check the terms for the guarantor, loan amount and interest, repayment tenure, margin amount etc.
2. Go for the convenient EMI plan
When it comes to repaying the loan amount, it would be good for you if you have chosen a convenient EMI plan. Always choose such EMI options that you feel are not an enormous amount for you. Also, the lender feels it is hard to trust you when you take a huge loan for a short period. That’s why opting for convenient equated monthly instalments (EMI) is essential.
Bonus tip: You can also get tax benefits on your study loan’s interest and payment under sections 80C and 80E of the Income Tax Act, 1961.
