Introduction:
Student loans are a big responsibility that can easily put you in huge debt. Our site shows which bank charges the least interest on education loans. A student's dream is to study in the best institute. However, it is not always possible to get financial assistance from your family members and well-wishers. If you are among those students who want to study abroad but don't have enough money for that, then an education loan may be the right solution for you.
Interest in education loans is a serious concern for millions of Indian students who are graduating from college every year. Many students go through a lot of stress and struggle to find a suitable job after graduation. While there are many banks that provide similar kinds of loans, each institution has its own interest rates. The purpose of this article is to help you in finding out the best bank to offer you a good education loan interest rate.
Common man's bank - SBI
The State Bank of India (SBI) is one of the largest public sector banks in India and is the second largest bank in the country. It was established in 1806 as a private company, but after nationalization in 1969, it became a fully owned subsidiary of the government.
Common man's bank - SBI
The SBI offers education loans to students who are pursuing higher studies at colleges and universities across India. The interest rates on these loans are low compared to other banks, which makes them an ideal option for those who want to study without much hassle.
If you are looking for a good interest rate on an education loan, it is SBI that comes with the best interest rate. In a recent survey conducted by SBI, it was found that the bank charges 2.25 percent interest on education loans. This is less than the nationalized banks and other private banks.
There are also other benefits associated with SBI's education loan scheme.
SBI has been offering attractive rates for its education loans for a long. In fact, the bank has been offering a special rate of 4 percent per annum to students who have completed their studies in professional courses such as MBBS, BMS, and BPT programs from government colleges or private institutions affiliated with these universities.
The scheme is open to students who have cleared their exams or are currently doing their graduation or post-graduation program in any field of study at any university or college in India or abroad.
Punjab national bank - PNB
Punjab National Bank offers the lowest interest rates on education loans. The bank charges an annual interest rate of 6.75% p.a. for a loan amount up to Rs. 2 lacks and 7% p.a. for a loan amount above Rs 2 lakh with a tenure of 5 years from the date of sanctioning of the loan by the concerned Bank Manager,
Directors or Credit Officer as applicable (including all pre-existing loans in respect of which credit facilities have been extended/re-opened). Punjab National Bank (PNB) is offering an interest rate of 9.25% on education loans. The bank has made this announcement to help students who are planning to take up further studies after graduation.
The bank has also announced that it will provide additional benefits to customers who have a minimum balance of Rs 1 lakh. These include zero percent EMIs for two months and unlimited cashback on mobile recharges internet banking and bill payments.
Punjab National Bank has the lowest interest rate. It offers a fixed rate of 9.25% p.a., which is lower than the SBI and ICICI Bank's 12.20% and 11.35%, respectively. The bank has a minimum loan amount of ₹ 50,000 for students pursuing post-graduate courses in India; this is higher than other banks' minimum requirements of ₹ 25,000 for students pursuing undergraduate courses.
The bank also offers higher education loans to students who have completed their studies or are on the verge of completing their studies. These borrowers can avail of up to ₹ 1 lakh while those pursuing professional courses can avail of up to ₹ 2 lacks as per their qualification and course duration.
HDFC Bank
HDFC Bank is the best bank for education loans. They offer the lowest interest rates on education loans in India with a tenure of 5 years. The minimum amount required to take a loan from HDFC bank is INR 1 lac.
HDFC Bank offers the lowest interest rate on education loans in India. The loan amount varies from person to person and depends on factors such as eligibility, the purpose of study, duration, and location of study.
The following table shows the minimum eligibility criteria for HDFC Bank's education loan schemes:
Eligibility Criteria Minimum Loan Amount (in Rs.) Minimum Loan Tenure (in Years) Minimum Loan Amount per Year (in Rs.) Minimum Loan Tenure per Year (in Years) Minimum Loan Amount per Student per Year (in Rs.) Minimum Loan Tenure per Student per Year (in Years) Regular Education Loans for Undergraduate Students — Up to Rs. 20 Lakhs 10 10 15 15 25 Above Rs.
20 Lakhs onwards 5 5 7 7 12 Post Graduate Education Loans for Undergraduate Students — Up to Rs. 30 Lakhs 10 10 15 15 25 Above Rs. 30 Lakhs onwards 5 5 7 7 12 Post Graduate Education Loans for Postgraduate Students — Up to Rs. 30 Lakhs 10 10 15 15 25 Above Rs. 30 Lakhs onwards 5 5 7 7 12.
The bank has a wide range of products to suit your needs:
Education Loan - HDFC Bank offers education loans at a 10.25% fixed rate for a period of 10 years with an option of repayment in installments over 10 years, which is quite attractive considering the tenure of the loan. The bank also provides other educational loans like self-financing and self-employed education loans.
Self-Financing Loan - This is an excellent option for those who want to start their own business or start a new venture but lack the funds to do so.
Self-Employed Education Loan - This is an excellent option for those who want to start their own business or start a new venture but lack funds to do so, or those who have been employed by someone else but do not feel comfortable taking up another job.
Conclusion:
SBI is the cheapest education loan provider. Banks charge us different interest rates according to some conditions. Please make sure you verify the interest rate before closing the deal. Make a comparison of different banks and get the best possible rate on your education loan. If somehow you are able to take an education loan from SBI, so I would suggest you go with that. It is charging only a 1.55% interest rate on education loans at present.
The other banks are charging a 2% interest rate, which means there is no point in taking an education loan from them at this time(April 2015). But what if you have already taken the education loan from SBI, there is no harm in taking another education loan again if it will be helping you more than what you can get now. In the case of Dr. Naveen D Kanodia, it's a 2.8 percent interest for an education loan of Rs 25 lakh at the State Bank of India.
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