For educational loans, the majority of parents desire what’s best for their kids’ education. However, making an investment in high-quality education is typically costly and calls for careful budgeting. Today, taking out student loans to pay for courses and degrees is the most common option for both Indians and colleges abroad. Education loans are typically used to pay for a variety of costs associated with courses, including tuition, dorm room lodging, uniforms, access to libraries and labs, course materials like textbooks and laptops, refundable deposits, transportation, and more. Here are the listings of banks that still provide incredibly low-interest rate student loans.
The nation’s cheapest education loan is available from this public sector bank at 6.75 percent. An education loan of Rs 20 lakh with a seven-year repayment period will have an EMI of Rs 29,942.
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Interest rates for floating-rate retail loans linked to the repo rate increased after the Reserve Bank of India (RBI) raised the main policy rate by 40 basis points on May 4. In addition, the rate is anticipated to be raised even more by as much as 50 bps when the RBI releases its June monetary policy review on Wednesday. And the country’s interest rate cycle is only beginning to tighten.
For students preparing for higher education, especially those who intend to study abroad in August or September, this could not have come at a worse moment. However, several government-owned banks are currently providing interest rates lower than 7.3%.
The cheapest education loan in the nation is offered by a public sector bank and costs 6.75 percent. An education loan of Rs 20 lakh with a seven-year repayment period will have an EMI of Rs 29,942.
The Central Bank of India would charge 6.85% interest for a study loan of Rs 20 lakh. An EMI of Rs 30,039 will be required for a loan of this kind within a seven-year period.
Among the top 10 lenders providing the most affordable education loans, this government-owned bank ranks third—and last—on the list of institutions charging interest rates under 7%. Your EMI at the 6.9% rate would be Rs 30,088.
This state-owned banking giant levies a 7% interest rate on student loans. You would be required to make seven EMI payments totaling Rs 30,185.
Two significant public sector lenders, Bank of Baroda and Punjab National Bank, will each offer a Rs 20 lakh education loan with a seven-year repayment period and a 7.15 percent interest rate.
The largest bank in India’s education loan would have an interest rate of 7.25 percent. A loan for Rs 20 lakh with a seven-year payback term will have an EMI of Rs 30,340. Two relatively tiny government-owned banks, Bank of India and Indian Overseas Bank, offer the same interest rate, according to BankBazaar data.
With an interest rate on school loans of 7.30 percent, this state-owned bank is the last on the list of the 10 cheapest lenders. The EMI for a loan of Rs 20 lakh with a seven-year repayment term is Rs 30,480.
Loans for education: Central Bank of India’s guidelines
The Central Bank of India currently has the lowest interest rate, at 6.95 percent, according to internet data. For a loan of Rs 20 lakh with a seven-year term, the equivalent monthly payment is Rs 30,136.
The loan program at Punjab National Bank
The second-cheapest lender is the government-owned Punjab National Bank (PNB), which has an interest rate of 7.45%. The entire EMI comes to Rs 30,627.
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SBI’s loan policies for education
SBI has a somewhat higher interest rate than average for student loans at 7.5%. Rs 30,677 would be spent on the EMI. Students who borrow money from the Union Bank of India and IDBI Bank would pay the same interest rate as borrowers from two other government-owned banks.
Education loan policies of Indian Bank
A Rs 20 lakh (7-year) education loan is subject to a 7.9% interest rate charged by Indian Bank. A repayment obligation of Rs 31,073 is owed by the borrower.
BoB’s approach to student loan policy
A Rs 20 lakh education loan from the Bank of Baroda has a 7.9% interest rate and a seven-year term. A repayment obligation of Rs 31,073 is owed by the borrower.
BOI’s approach to student loans
The state-owned bank charges an interest rate of 8%. The total cost of the EMI is Rs 31,422.
Policy on education at Canara Bank
The interest rate on a Rs 20 lakh education loan from Canara Bank with a seven-year payback period is 8.3%. The total cost of the EMI is Rs 31,472.
Policy on Bank of Maharashtra student loans
The Bank of Maharashtra charges an 8.35% interest rate on student loans. The amount due each month, in this case, is Rs 31,522.
