Education loan: list of banks with the lowest interest rate (2023)

Students who dream of achieving something bigger in India or abroad may need help to pursue their interests. There is a need hereeducation loanarises. We cannot ignore the fact that certain conditions must be met in order to qualify. There are many options when it comes to education loan. It's also differentlist of banksYou can choose. With such limitless options, you're good to goeducation loans in indiawith the lowest interest rates. Here is an article with a list of bank offerslow interest ratesalreadyeducation loan in india. We also discussed eligibility criteria, required documents and when an application for an education loan can be rejected. Before we get into that, let us first understand what an education loan is.

What is an education loan?

Someeducation loanis the amount of money you borrow to finance your higher or higher education. Someeducation loancovers the cost of tuition fees, books, study materials, living expenses and additional financial costs such as transport, library fees, health insurance (if applicable), study visits etc. Refundeducation loanit happens when you start paying off the amount through interest or direct EMI. Repayment is usually made after the grace period has expired. Payments can be deferred for 6 months after graduation.

Types of interest rates

There are two types of interest rates that can be applied to education loans:

Variable interest rate

Variable interest rates are interest rates that can change. They may increase or decrease during the loan period. Public sector banks give less variable interest rates.

The interest rate is fixed

As the name suggests, fixedInterest ratesare interest rates that are fixed. They do not change, so they remain the same throughout the loan period. The EMIs also remain the same. This is an easy option for the borrower on a tight budget.

List of banks offering lowest interest rates in India

State Bank of India

State Bank of India (SBI)provides a loteducational loansstarting at 6.70% interest rates. It also offers flexible repayment terms. You can apply for SBI education loans in India and abroad. It gives loans up to 20 lacs and above. You can also use loans for vocational training and other courses.

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Here is a list of the so-callededucational loansprovided by the State BankIndie (SBI)at lower interest rates:

  • SBI Take Over of Education Loan – interest rate of 8.65% per annum
  • SBI Global ED-VANTAGE - 8.15% - 8.65% interest rate per annum
  • SBI Scholar Loan – 6.70% – 8.15% interest rate per annum
  • SBI student loan – interest rate 8.65% p.a

Banka Barody

Bank of Baroda offers a range of education loans available atlow interest rates. The largest amounteducation loanit depends on the type of loan you choose.

Here is a list of the so-callededucational loansfrom Bank of Baroda atlower interest rates:

  • Baroda Scholar – interest rate of 8.90% p.a
  • Baroda education for students of the best institutions - interest from 6.75% to 8.75% per year
  • Baroda Gyan - Maximum 8.75% interest per annum
  • Baroda Vidya – Interest rate 9.60% p.a

Central Bank of India

provided by the Central Bank of Indiaeducational loansfor students in India and abroad. Thethe lowest interest rateaccording to the Central Bank of India report it is 6.85%. There is also ROI benefit for women and backward castes like SC and ST students. The maximum loan amount for students in India is Rs 10 lakh and Rs 20 lakh for students studying abroad.

Here is a list of the so-callededucational loansby the Central BankIndieat lower interest rates:

  • Cent Vidyarthi – interest rate of 8.50% to 9.00% per annum
  • Cent Vidyarthi for Executive MBA - 6.85% to 7.35% interest rate per annum
  • Cent Skill Loan – interest rate from 8.65% to 8.70% per year
  • Cent Vidyarthi IIMs and other reputed management institutes - interest rate of 7.00% p.a

Punjab National Bank

Punjab National Bank has many of themeducation loanfinancial aid options for students studying in India, abroad or at top institutes (university level institutions). licensedLoan for educationin PNB offers 4% interest on Rs 50 lakh with 40% student disability or above. The repayment term is usually 15 years.

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Here is a list of the so-callededucational loansPunjab National Bank at lower interest rates:

  • PNB Pravasi Shiksha Loan - Interest Rate 8.90% p.a
  • GNP Honhaar - interest rate 8.75% per annum
  • GNP Kaushal - Up to 8.25% interest per annum
  • GNP Udaan - Interest rate up to 9.50% per annum
  • PNB Pratibha - Interest up to 8.00% p.a
  • GNP Saraswati - up to 9.50% interest per year

Bank of India

Bank of India has a long listeducation loanprograms for students who want to attend vocational coursesIndieand abroad. Students who have a good academic career are considered liable for such education loans.

Here is a list of the so-callededucational loansBank of India at lower interest rates:

  • Bank of India Star Vidya zajam – 9,35%
  • Bank of India Star Education Loan – one łza MCLR + 1.70%
  • Bank of India Loan for Education Abroad – 8.55% to 9.35%

Union Bank of India

Theeducational loansprovided by Union Bank ofIndieare available to students studying in India, Overseas and NRIs. The lowest interest rate is 6.80% per year. A co-applicant can be one of the parents, spouse or in-laws.

Here is a list of the so-callededucational loansby Union BankIndieat lower interest rates:

  • Skills development in EU education - 8.30% to 10.05%
  • Union Special Education Loan Program – 6.80% to 8.55%
  • Union Education Loan za studente Indian School of Business (ISB) – 6,80% do 7,00%
  • Union Education (up to 7.5 lakh) - 8.40% to 10.05%
  • Union Education (over 7.5 lakh) - 8.80%

Eligibility criteria for education loan

Courses that provide an education loan

The different types of courses you useeducational loansI:

(Video) കുറഞ്ഞ നിരക്കിൽ വിദ്യാഭ്യാസ വായ്പ നൽകുന്ന ബാങ്കുകൾ|Lowest rate Educational Loan|Student Loan

  • Undergraduate studies
  • Postgraduate studies
  • Doctoral and doctoral studies
  • Professional certification courses
  • Professional training
  • Job oriented courses

Citizenship Eligibility for Education Loan

All students of Indian origin who are eligible foreducation loansturn on:

  • Indian citizens
  • People of Indian Origin (PIO): Students who are Indian but settled abroad.
  • Non-Resident Indian (NRI): An Indian citizen living outside India for an indefinite period.
  • Overseas Indian Citizens (OCIs): Foreign nationals who are holders of OCI cards under Section 7A of the Citizenship Act, 1955.

Educational credit institutions

Banks are expandingeducation loansthe following institutes:

  • Private institutions
  • State faculties
  • Recognized universities
  • International colleges and universities

Necessary documents

Some documents are required as valid proof when a student applieseducation loan. It is not necessary to submit original documents to the bank, only scanned photocopies. Documents required to apply for the aboveeducation loanare as follows:

  • College or university application letter
  • Grade sheets 10, 10+2 and scale
  • Fixed Account Number (PAN) card.
  • Karta Adhar
  • Voter's card
  • Passport
  • bank book
  • Payrolls of co-applicants
  • Tax returns (ITR) for the last two years of co-applicants (parents/spouse/father-in-law)
  • Two passport size photos

Banks that offer the lowest interest rates abroad

Both insurededucational loansfrom state banks and unsecured loans from abroad create the following expenses on behalf of students:

  • Tuition
  • Cost of living abroad
  • Health insurance
  • Travel tickets
  • Help with learning

The list of banks that offer the lowest interest rates for studying abroad is as follows:

  • SBI – starts at 9.05% p.a
  • Bank of Baroda – starts at 9.7% p.a
  • Axis – starts at 10.5% per annum
  • ICICI – starts at 10.5% p.a
  • HDFC Credila - from 9.75% per annum
  • Down payment - starts from 11.0% per annum
  • InCred- starts with 11.5% per annum
  • Auxilo – starts with 0.5% per year

(From October 2022)

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When do banks reject an application for an education loan?

Banks can turn you downeducation loanrequest in the following circumstances:

  • A CIBIL score lower than 600 for you or your co-applicant is rejected.
  • Students who repeatedly fail certain courses or cannot finish the course on time may be rejectededucation loanon such grounds. Some educational courses may have certain criteria that must be met in order to apply for such a loan. If your institute prevents you from taking the qualifying exams, you may not be considered suitableeducational loansthrough the bank.
  • The bank may not provideeducational loansfor some countries such as Ukraine, China and Afghanistan. Some of the countries that are on the list of lenders are USA, Canada, UK, Germany etc.
  • Banks can refuseeducational loansfor unapproved professional courses.
  • There is a high probability that the student and the joint applicant will submit incomplete or false documentationeducation loanbank refusal.
  • Correspondence, distance learning and part-time learning are not considered profitable by bankseducational loans.

final thought!

Loans for educationAlreadylow interest ratesit can be used when you want to get maximum benefit with minimum cost.Education Loans in Indiabank offers allow students to dream big. When financially constrained, these lowest interest education loans give students the opportunity to continue their education despite the hardships. When the people of India are educated and financially stable, they can help the country grow and prosper, negating all the troubles and setbacks.

Frequently Asked Questions (FAQ)

Which bank has the lowest interest rate on education loans in India?

SBI Scholar Loan gives an interest rate of 6.70% - 8.15% per annum.

Which bank easily approves loans for education?

Some of the banks that grant education loans are State Bank of India, Punjab National Bank, Bank of Baroda, Central Bank of India etc.

Which loan is better for students?

All education loans offered by different banks are better for students. If you are looking for an education loan at lower interest rates, you can consider applying to banks like State Bank of India, Punjab National Bank, Bank of Baroda, Union Bank of India, Central Bank of India etc.

Can banks refuse education loans?

Yes, banks can reject education loans if your CIBIL score is low, bad grades, unapproved courses or professional institutions, fake documents etc.

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Can the education loan be reduced?

The burden of education loans can be reduced by choosing a short term loan, choosing a loan with collateral or an interest subsidy, ending the loanPaymentduring the moratorium period etc.

Which bank offers an education loan with 0% interest?

There is no bank that gives education loan with 0% interest. The minimum interest rate on an education loan can range from 6-7% per year.


Education loan: list of banks with the lowest interest rate? ›

What type of student loan has the lowest interest rate? Federal student loans tend to offer the lowest interest rates, and there's no credit check for most federal student loans. All borrowers get the same rates regardless of credit score and history.

Which banks has lowest interest rate on education loan? ›

List of Banks Offering Lowest Interest Rates in India
  • SBI Take Over of Education Loan – 8.65% interest rate p.a.
  • SBI Global ED-VANTAGE- 8.15% – 8.65% interest rate p.a.
  • SBI Scholar Loan – 6.70% – 8.15% interest rate p.a.
  • SBI Student Loan – 8.65% interest rate p.a.
Feb 6, 2023

Which type of student loan has the lowest interest rate? ›

What type of student loan has the lowest interest rate? Federal student loans tend to offer the lowest interest rates, and there's no credit check for most federal student loans. All borrowers get the same rates regardless of credit score and history.

Which bank is best for education loan? ›

Best Education Loan in India 2023
S.No.Best Education Loan in India
1.Punjab National Bank Education Loan
2.SBI Education Loan
3.Axis Bank Education Loan
4.Bank of Baroda Education Loan
1 more row
3 days ago

Which bank has the lowest interest rate for? ›

Compare Best Personal Loans at Lowest Interest Rates in India 2023
List of Banks/LendersPersonal Loan Interest RatesLoan Amount
YES BANK11.05% - 20.25%Upto INR 40 lakh
Tata Capital10.50% - 24.00%Up to INR 25 lakh
Fullerton India11.99% OnwardsUpto INR 25 lakh
35 more rows

Which student loan doesn t charge interest? ›

Subsidized Loans do not accrue interest while you are in school at least half-time or during deferment periods. Unsubsidized Loans are loans for both undergraduate and graduate students that are not based on financial need.

How to pay the least amount of interest on student loans? ›

Pay More than Your Minimum Payment

Paying a little extra each month can reduce the interest you pay and reduce your total cost of your loan over time. Continue to make monthly payments even if you've satisfied future payments, and you'll pay off your loan faster.

Can you ask for a lower interest rate on student loans? ›

Negotiating a lower interest rate with private lenders is rarely successful. Although you may not be able to negotiate a lower loan interest rate with either federal or private student loans, you are not necessarily stuck with a higher rate forever.

Are student loans still 0% interest? ›

In this case, your payments would be suspended from April 15, 2022, through the end of the payment pause. The interest rate on your loans will stay at 0% throughout this period. Interest on your loan builds up while you're in school.

What is a good interest rate on a student loan? ›

It's usually best to start with federal student loans, which have an interest rate of 4.99 percent for undergraduate students for the 2022-23 school year.

Is it better to get a student loan from a bank? ›

The best student loan is generally the one that costs you the least. That may come from a bank, especially if it offers a loyalty discount that lowers your interest rate.

What bank do most college students use? ›

  • Our Top Picks.
  • Chase Bank College Checking Account.
  • Capital One MONEY Account.
  • Bank of America Advantage Banking.
  • Discover Cashback Debit Account.
  • PNC Virtual Wallet Student Account.
  • Truist Student Checking Account.
  • U.S. Bank Student Checking Account.

Which bank is best for education loan without collateral? ›

Top Lenders to Apply for Education Loan without Collateral

Some prominent lenders include: Public banks like SBI, Bank of Baroda, etc offer applicants with a loan of upto 7.5 Lakhs without collateral. Private banks like Axis Bank, ICICI Bank, HDFC, etc offer students a loan amount upto 40 lakhs without collateral.

What banks offer 3% interest? ›

High-yield savings accounts with APYs of 3% (or more)
  • UFB DIRECT: 3.83% APY. Minimum deposit: None. ...
  • Bask Bank: 3.6% APY. Minimum deposit: None. ...
  • Upgrade: 3.5% APY. Minimum deposit: None. ...
  • CIT Bank: 3.25% APY. Minimum deposit: $100. ...
  • LendingClub: 3.25% APY. ...
  • Marcus by Goldman Sachs: 3% APY. ...
  • SoFi: 3% APY. ...
  • Discover: 3% APY.
Nov 15, 2022

What US bank has the best interest rate? ›

  • Barclays. Member FDIC. APY 4.00% Min. Balance to Earn APY $0. ...
  • CIT Bank. Member FDIC. APY 4.85% Min. Balance to Earn APY $5,000. ...
  • CIT Bank. Member FDIC. APY 4.60% Min. Balance to Earn APY $100. ...
  • Upgrade. Member FDIC. APY 4.56% Min. Balance to Earn APY $1000. ...
  • Bread Financial. Member FDIC. APY 4.50% Min. Balance to Earn APY N/A.
May 18, 2023

What banking institution has the best interest rates? ›

Best High-Yield Savings Account Rates
  • Upgrade – 4.81% APY.
  • Laurel Road – 4.80% APY.
  • Panacea Financial – 4.80% APY.
  • Ivy Bank – 4.80% APY.
  • TAB Bank – 4.76% APY.
  • Bask Bank – 4.75% APY.
  • Bank Purely – 4.75% APY.
  • iGObanking – 4.75% APY.

What is the average student loan payment? ›

The average monthly federal student loan payment for recent bachelor's degree-recipients is $278. People generally borrow more and have higher interest rates for graduate degrees. Therefore, their monthly payments are higher. Average federal student loan payments for master's degree-holders are about $572 a month.

Why is student loan interest so bad? ›

Secured loans, by comparison, are backed by something of value, such as a car or house, which can be seized if you default. But lenders can't seize a degree. So student loan interest rates are typically higher than secured loan rates because the lender's risk is higher.

How bad is student loan interest? ›

No payment is due before then. If you're still borrowing for your education, the federal student loan interest rate for undergraduates is 4.99% for the 2022-23 school year. Federal rates for unsubsidized graduate student loans and parent loans are higher — 6.54% and 7.54%, respectively.

How to make $0 payments for student loans? ›

Federal student loan payments can be paused via deferment and forbearance. Deferment is tied to events like losing your job or undergoing cancer treatment. If you're eligible, this option can keep payments at $0. For example, an unemployment deferment may be possible if you work fewer than 30 hours per week.

Do student loans affect credit score? ›

Student loans are a type of installment loan. Like other loans, student loans appear on your credit report. As a result, they can play an important role in helping you build credit history and will impact your credit score in various ways.

What makes student loans so hard to pay off? ›

Certain lenders may capitalize your interest or charge interest on top of interest, which results in higher charges. Capitalized interest can make it challenging to make a dent in your total student loan balance. If you're wondering, why do student loans take so long to pay off? Capitalized interest may be the culprit.

Which student loans have lower interest rates federal or private? ›



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