Many people dream of pursuing higher studies abroad. However, with the rupee depreciating to a record low against the dollar, paying tuition fees has become a significant burden, even for wealthy families.
In this context, taking an education loan can be a viable option. If you plan to take one this year for studies abroad, finding a bank offering loans at low interest rates is crucial.
To help ease this financial burden, we provide details on the interest rates various banks charge on education loans.
Important Points to Remember
Numerous banks offer special education loan programs for students pursuing international studies. These loans cover a range of expenses, including tuition fees, laptops, books, air travel, and more.
Before taking an education loan, you should consider several factors such as the interest rate, processing fees, repayment terms, loan tenure, and moratorium period.
According to data from BankBazaar.com, most banks in India offer education loans up to Rs. 50 lakhs, with interest rates ranging from 8.60% to 13.70% for a 7-year tenure.
Bank Comparisons
ICICI Bank & Union Bank of India (UBI): The annual interest rate on education loans starts at 9.25%. The EMI for a loan of Rs. 50 lakhs over seven years is Rs. 81,081.
Bank of Baroda (BoB): The interest rate starts at 9.45%. The EMI for a loan of Rs. 50 lakhs is Rs. 81,592 per month for a seven-year tenure.
State Bank of India (SBI): Interest rates begin at 10.15%. The monthly EMI for a Rs. 50 lakh education loan over seven years is Rs. 83,394.
Indian Bank: This bank offers the lowest interest rate at 8.60%. The EMI for a seven-year loan of Rs. 50 lakhs will be Rs. 79,434.
Punjab National Bank (PNB): The interest rate starts at 10%. The EMI for a Rs. 50 lakh loan with a seven-year tenure is Rs. 83,006.
Canara Bank: The interest rate starts at 10.25%, and the EMI on a Rs. 50 lakh loan for seven years will be Rs. 83,653.
Axis Bank: The interest rate starts at 13.70%, and the EMI for a loan of Rs. 50 lakhs over seven years will be Rs. 92,873.
Bank of India (BOI): The interest rate starts at 11.60%. The EMI for a Rs. 50 lakh loan for seven years is Rs. 87,198.
Indian Overseas Bank (IOB): The interest rate starts at 11%. The EMI for a Rs. 50 lakh loan over seven years is Rs. 85,612.
Compare the options carefully to find the best education loan for your needs.