An excellent education loan can decide your future. How do you ask? Well, making the correct decision with the education loan is crucial because we know you won’t like the sword of huge debts on your heads when you’re racing for a perfect job right?
That’s why Loan Geek has curated this blog for you with the Top 5 Educational loan providers in India. With the help of this, you can aim high for the degree of your choice without worrying about doing additional research on education loans.
What is an Education Loan?
The cost of education and cost of living is generally higher abroad. That’s when an educational loan comes in handy.
Any individual in the age group of 18-35 can avail of such educational loans as provided by various banks, NBFCs, and fintech lenders.
When you’re opting for an educational loan, you will need to take care of the following factors:
- Higher loan amounts
- Longer loan tenure
- Fast processing time
- No/low additional charges
- Interest rate subsidies
- Tax benefit under section 80E
- Wider course and institution eligibility options
Comparison of Interest Rates, Loan Tenure between 5 Education Loan providers-
|Education Loan Providers||Maximum Loan Amount||Maximum Loan Tenure||Interest Rate||Processing Fee|
|SBI||Rs. 1.5 Crore||15 Years||8.65% p.a onwards||Rs. 10000|
|PNB||As per requirement as repayment capacity||15 Years||RLR + BSP + 2% onwards||1% of the loan amount, subject to the minimum amount of Rs.10000|
|Axis Bank||Rs. 20 Lakh||15 Years||13.70% p.a onwards||At the discretion of bank|
|HDFC Bank||Rs. 30 Lakh||15 Years including moratorium period||9.55% p.a onwards||Maximum 1% of the loan amount or minimum of Rs. 1000 whichever is higher|
|Tata Capital||Rs 75000-Rs 25 lakhs||6 Years||10.99% p.a onwards||Up to 2.75% of the loan amount|
List of Top 5 Educational Loan providers in India 2022
- State Bank of India (SBI):
SBI offers education loans to students desiring to opt for higher education studies both in India and abroad. SBI offers education loans for not only PG courses but for UG as well as diploma courses.
- Available for courses such as Chartered Institute of Management Accountants (CIMA) and Certified Public Accountants (CPA).
- Punjab National Bank (PNB):
PNB gives educational loans for foreign universities – Graduate, Diploma, Post Graduate, and Diploma Courses via its special scheme named PNB Udaan.
- Moratorium period: Course period + 1 year
- Zero Prepayment charges
- Axis Bank –
Axis bank is of the leading institutions offering education loans to students pursuing various undergraduate courses, diplomas, professional education and postgraduate courses.
- Balance Transfer: Change your existing high-cost education loan and reduce the monthly EMI
- Tax benefits under section 80(E)
- HDFC Bank –
HDFC customizes your education loans as per your requirement. The bank is flexible and makes the process hassle-free.
- Secured Loans up to Rs. 20 Lakhs and Unsecured Loans Rs. 35 Lakhs
- Loans provided for over 950 professional courses at approved universities in 36 countries
- Tata Capital –
Apart from well-known banks, Tata Capital is another well-known NBFC that is lending educational loans for higher education abroad.
- 72 hours loan disbursal process.
- A processing fee is also applicable.
To know in detail about the Educational Loan Providers in India, checkout, SBI Student Loan, PNB Student Loan, and Tata Capital Educational Loan.