This article serves you with the list of top education loan providers in India 2023. Refer to this post if you are keen to know about top banks offering education loans, which bank gives lowest interest rate for education loan in India, name of government and private lenders, processing fee, eligibility, repayment period, margin, security etc.
Education system has undergone drastic change over the period of time. From basic ‘pathshalas’ to ‘digital classroom’, Indian education system has witnessed an exemplary change which way more than ever thought of. It is not only the way of teaching and nodes of education sources that have been revolutionized but also the financial structure that makes education a reasonable affair. Here, we are not focusing on the primary education but the higher education that comprise high cost. Government of India and its many money lending hands have collaborated to make education more accessible to all students of India by and large. There are various schemes and policies that have been revised to facilitate education to Indian students not only for studying in Indian colleges but also abroad. Here is a list of various institutions that offer education loan in India:-
Table of Contents
Best Education Loan Providers in India 2023
Check out the list of top banks offering education loans in India:
SBI Education Loan
State Bank of India offers a variety of term loan to Indian nationals in order to pursue higher education in India as well as abroad. The bank offers interest rate starting from 10.05% p.a with repayment period up to 15 years after the course period plus 12 months additional repayment holiday.
| Rate of Interest | Starting from 10.05% p.a |
| Repayment period | Up to 15 years after Course Period plus 12 months of repayment holiday |
| Processing fee | Loans above Rs. 20 lacs: Rs. 10,000 (plus taxes)
Loans upto Rs. 20 lacs : NIL |
| Security | Up to the amount Rs. 7.5 Lacs: There is no third party guarantee or collateral security required. Parent/Guardian will act as co-borrower
Above Rs. 7.5 Lacs: Tangible collateral security is required. Parent/ Guardian will act as co-borrower |
| Margin | Above Rs 4 Lacs: 15% for studies in abroad & 5% for studies in India |
Indian Bank (Allahabad Bank) Education Loan
The bank facilitates finance to students for both Indian and International colleges. For students willing to avail loan for pursuing academics in India the loan granted is up to Rs 75 lacs and for students applying for university abroad, the loan granted are Rs.75 lacs. Entire loan amount is to be repaid within the period of 15 years.
| Rate of Interest | Floating interest rate of 12.50% per annum |
| Repayment period | Up to 15 years |
| Loan amount | Study in India- Up to Rs.75 Lac
Study abroad: Rs.75 Lac |
| Security | Up to Rs.4 Lac- no collateral security
Above Rs.4 Lac: Based on the course or type of institute. Security may vary from third party guarantee, co-obligation of parents, full collateral security |
Union Bank of India Education Loan (Merged with Andhra Bank and Corporation Bank)
Only Indian national is eligible to avail education loan from Union Bank of India. The loan is valid for various graduate and post graduate courses and students who wish to study abroad. The maximum repayment tenure would be 15 years irrespective of quantum of loan.
| Rate of Interest | Starting from 8.80 percent |
| Repayment Tenure | Up to 15 years |
| Security | Up to Rs.4 Lakh and & up to Rs.7.50 Lakh: There is no security required if the loan is covered CGFSEL
Above Rs.7.50 Lakh: Tangible collateral security |
| Margin | Up to Rs.4 Lakh: NIL
Above Rs.4 Lakh: · Studies in India: 5% · Studies abroad: 15% NRI students: 15%
|
Bank of Baroda Education Loan
Parents can take education loan for their child right from nascent state to higher education levels. Loans are obtainable for student’s right from nursery level to class XII and for other higher education courses at different colleges and universities.
| Rate of Interest | Starting from 7.50% |
| Repayment Period | 10-15 years |
| Security | No security needed to loan up to 4 lakhs |
| Address proof | Voter’s ID, Driving License, Aadhaar Card, Passport |
Axis Bank Education Loan
The bank provides necessary financial students to pursue their higher education. The loan is provided to students who pursue career oriented disciplines as in engineering, management, medicine or wish to pursue graduate and post-graduate courses.
| Rate of Interest | Starting from 8% |
| Minimum Loan Value | Rs.50000/- |
| Margins | Up to Rs.4Lakh: No margin
Above Rs.4Lakh for studies in India: 5% Above Rs.4Lakh for studies overseas: 15% |
| What will cover? | Tuition fees, hostel charges(if any), cost of books etc. |
Central Bank of India Education Loan
The loan facility extends to not only education but also comprise other spheres as in hostel fee, caution deposit, library fees, admission fees, examination fees, books cost, uniform, and other requirements pertaining to education. One side air way fee is also included in case student wishes to study abroad. The amount of the loan is to be paid after 6 months of securing a job or 12 months after completion of studies. Maximum time of loan repayment is up to 10 years for loans up to Rs.7.50 lakh and maximum repayment period up to 15 years for loans above Rs.7.50 lakh.
| Rate of Interest | Male Students ( India ,Abroad): REPO+ 5.00= 9.00%
Female SC,ST,( India ,Abroad): REPO+ 4.500= 8.50% |
| Margin | Up to Rs. 4 lacs: NIL
Above Rs.4 lacs for studies in India: 5% margin Above Rs. 4 lacs for studies in abroad: 15% margin |
| Repayment period | For loans up to Rs.7.50 lakh: Up to 10 years
For loans above Rs.7.50 lakh: Up to 15 years |
| Processing fee | For studies in India: No processing fee
For studies abroad: for loan up to Rs.10 lakh: Rs.500/- for loan above Rs.10 lakh: Rs.1000/- |
Canara Bank Education Loan
The financial assistance is doled out meritorious students’ right from High School onwards to further classes that comprise graduation including professional and other technical courses.
| Rate of Interest | Up to 7.5 Lakh: ongoing One Year MCLR+2.00 %
Above 7.5 Lakh: ongoing One Year MCLR+1.50 % |
| Eligibility | Indian National |
| Margin | Up to Rs.4.00 Lakhs – Nil
Above Rs.4.00 Lakhs – · For Studies in India – 5% · For Studies abroad – 15%
|
| Security | Up to Rs.7.50 Lakhs: No collateral Security
Above Rs. 7.50 Lakhs: Tangible Collateral security |
| Repayment period | Up to 15 years |
HDFC Bank Education Loan
The bank provides an education loans to student to pursue their academic course. The loan covers various cost of education as in examination fees, admission fees, tuition charges and other fees.
| Loan amount | Up to 7.5 lakhs is approved without collateral
One can avail loan amount up to 20 lakhs |
| Repayment period | Up to 15 years |
| Processing and approval | Quick approval with no hidden cost |
| Processing charge | Up to 1% of the loan amount or minimum amount Rs.1000/- whichever is higher |
Bank of India Education Loan
The education loan is only provided to meritorious and deserving candidates for pursuing education both at India and abroad.
| Margin | Up to Rs.4 lakh : Nil
Above Rs.4 lakh · For studies in India: 5% · For studies abroad: 15% |
| Eligibility | Indian National |
| Security | Up to Rs. 7.50 lakh: Parents or Guardian should be co-borrower
Above Rs.7.5 lakh: Co-obligation of Parents along with tangible Collateral security
|
| Quantum of Finance | For Studies in India – Maximum Rs.10 lakh
For Studies abroad – Maximum Rs.20 lakh |
Bank of Maharashtra Education Loan
Education loan is provided to students for various courses. The rate of interest vary as in for loan up to 7.50 Lacs rate of interest is 8.90% and for loan more than Rs 7.50 Lacs rate of interest is 8.55%.
| Rate of Interest | Up to 7.50 Lacs: 8.90%
Above Rs 7.50 Lacs: 8.55% |
| Maximum loan amount | In India : Rs. 10.00 lac Abroad : Rs. 20.00 lac |
| Margin | Up to 4 lakhs: NIL
Above 4 lakhs: For studies in India: 5% For studies abroad: 15% |
| Repayment Period | Up to 15 years |
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